The Federal Trade Commission (FTC) filed a lawsuit against Neora, LLC and its CEO Jeffrey Olson for allegedly operating an illegal pyramid scheme and engaging in deceptive marketing.
Neora was previously known as Nerium International. It is a multi-level marketing company selling supplements, skin creams, and other products through a network of “brand partners.”
In the lawsuit, the FTC alleged that Neora and its CEO made false promises to people that will achieve financial independence if they join its scheme. They allegedly misrepresented that its distributors can make substantial or “life-changing income.” In reality, majority of its recruits will lose money.
The Commission noted that Neora is pushing its distributors to focus on recruiting instead of selling its products to customers. In a 2015 promotional video, one of the company’s top earners stated that distributors must do three things to “explode” their business: “Number one: Recruit. Number two: Recruit. Number three: Recruit.”