Additionally, the FTC alleged that Neora and its CEO deceptively promoted “EHT” supplements as a cure to concussions, chronic traumatic encephalopathy caused by repetitive brain trauma, Alzheimer’s disease and Parkinson’s disease.
In a statement, Andrew Smith, Director, Bureau of Consumer Protection at the FTC, commented, “Participants in legitimate multi-level marketing companies earn money based on actual sales to real customers, rather than recruitment. But pyramid schemes depend on recruitment of new participants to pay out to existing participants, meaning that the vast majority of participants will ultimately lose money.”
The FTC is seeking a court order to permanently stop the defendants’ illegal pyramid scheme, deceptive marketing practices and to return money to consumers.
The Commission also sued Signum Biosciences and Signum Nutralogix, the supplier of EHT supplements to the multi-level marketing company. Both companies agreed to settle the FTC allegations.
Under the settlement agreement, the Signum companies agreed to stop making baseless claims regarding EHT or other supplements.
