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According to the FTC, nearly $149 million has been given to Advocare pyramid scheme victims.

The notification was issued by the FTC on May 5. It comes after Advocare resolved FTC fraud claims for $150 million in 2019.

The AdvoCare distributors who lost money as a result of the AdvoCare pyramid scam are receiving more than $149 million back from the Federal Trade Commission.

More than 224,000 customers who lost money to the AdvoCare pyramid business are receiving reimbursements from the Commission. PayPal and checks are used to distribute the money.

Customers who receive PayPal payments must redeem them within 30 days, and customers who get checks must cash them within the timeframe specified on the check (usually 90 days).

Advocare recipients have started posting about receiving cheques on social media today.

Advocare is still operating today, but MLM activities were suspended after the FTC settlement. Distributors of Advocare now only profit from direct sales to consumers.

The FTC made an intriguing remark at the end of its news statement, stating that Section 13(b) of the FTC Act was the reason for the $150 million refund.

The U.S. Supreme Court determined in 2021 that the Commission is not permitted to proceed with future Section 13(b) monetary relief claims in federal court.

Consumers are receiving money back today from settlements that were signed before the Supreme Court’s ruling.

The Supreme Court sided with con artists in 2021. The AMG ruling effectively prohibited the FTC from pursuing financial recovery under 13 (b).

The regulator’s MLM lawsuit has decreased since the SC judgment from the previous year. The FTC’s current MLM regulation has likewise turned into a cumbersome tangle.

Scammers currently do not get monetary judgments or penalties even losing legal proceedings. In other words, the FTC targets MLM fraud victims and they suffer.

MLM fraud is only one aspect of the harm. Recently, FaceBook mentioned AMG to defend itself from a $5 billion antitrust lawsuit.

If Facebook wins, customers lose out once more.

These rulings further restrict the FTC’s capacity to effectively resolve disputes.

Even when they ceased breaking the law only after discovering that the FTC was looking into them, targets of FTC investigations now frequently assert that they are immune from lawsuits in federal court because they are no longer breaking the law, despite the possibility that they would do so again.

The FTC is making modest progress in regaining the ability to pursue MLM scams.

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