October 7th, 2021
Here at TINA.org we’ve seen and analyzed dozens of MLM income disclosure statements. These documents often purport to show the average earnings of distributors, as opposed to what the typical participant earns, which is what FTC law requires when making income representations. They are often full of spin and the one belonging to Amplifei, an Indiana-based supplement MLM that a TINA.org reader alerted us to, is no different.
“The average Affiliate in a direct selling business earns between $500- $1500 per year,” the income disclosure, linked at the bottom of the Amplifei website, states. “Some earn less while some earn much more.”
In fact, most people who join legitimate MLMs earn little or no money and some even lose money, according to the FTC.
The income disclosure states that these estimates are based on “the earnings experience of existing Member sellers.” But the document does not include a breakdown of the earnings of its active distributors, if that’s what it means by “existing Member sellers.”
It also contradicts marketing claims related to the “opportunity” that are made in sections of the site that consumers weighing a decision to join the MLM are more likely to visit.
On an opportunity page, for example, Amplifei says that it sets itself apart with a “completely new approach to social selling,” a euphemism for multilevel marketing that it uses throughout the site. By contrast, the income disclosure states that the company “operates a comparable Compensation & Rewards Plan, selling comparable products and services in the industry.” (Emphasis added.)
On another page that talks about the company’s “approach,” Amplifei claims that the advent of social media means “anyone can grow a thriving business,” even a “newbie.” Meanwhile, the income disclosure warns that “Success in this business requires hard work, dedication and good sales skills.”
MLMs aren’t required to publish an income disclosure statement and many don’t. Or they do but the document is confusing, doesn’t account for business-related expenses or doesn’t reflect the earnings (or losses) of all distributors.
In a perfect world, an income disclosure would give consumers an idea of what they might expect to earn as a distributor in the MLM. In reality, it often ends up being used as marketing material.
Speaking of which, the Amplifei website is also rife with questionable health claims and illegal disease-treatment claims. We’ll leave you with a few examples to ponder:
- Immune XP’s unique blend naturally promotes disease resistance, increases immune response and nutrient uptake, fights inflammation and promotes gut health.
- Spherical Nano silver [an alleged ingredient in its Pure 47 supplement] has been used for centuries to treat everything from colds to flu, as well as for a variety of bacterial infections.
- With over 200 times the antioxidant effect of red wine, Xanthohumol has been linked to a wide range of potential benefits, including regulating cholesterol, glucose and insulin.
- If your pet pal suffers from depression, pain, anxiety, loss of appetite or joint and skin inflammation, HempliPET could be the answer you’ve both been looking for!
Find more of our coverage on MLM income disclosure statements here.