Empowering Consumers: Recent Strides in Combating MLM Scams
The FTC expands language support for Fraud Reports, announces November Open Commission Meeting
In a recent and noteworthy development, the Federal Trade Commission (FTC) has taken steps to enhance consumer protection by expanding language support for reporting fraud. This expansion allows individuals from diverse linguistic backgrounds to report fraud to the FTC, transcending the traditional English and Spanish options.
I believe these changes are not merely the result of corporate linguistic diversity initiatives or simply the availability of AI-powered translation tools, but also reflect the collaborative efforts of consumer protection advocates and anti-MLM activists, actively sharing insights with the FTC, discussing the ever-evolving MLM landscape, and strategizing on how to combat fraudulent schemes effectively.
Anti-MLM Activism Works
In 2021, a grassroots effort on Facebook, led by anti-MLM activists, resulted in the closure of Black Oxygen Organics, a company making rampant fraudulent health and income claims. This effort showcased the potential of community-driven initiatives in exposing fraudulent MLM schemes.
The following year in 2022, the FTC's advance notice of proposed rulemaking (ANPR) on "Fraudulent and Misleading Earnings Claims" led to the creation of the website MLMchange.org. This collaborative effort involved several anti-MLM activists and content creators, making information accessible and facilitating public comments on the ANPR. The tools developed for MLMchange.org, which was translated into Spanish, Tagalog, and Chinese by volunteer activists, clearly left a lasting impression on the commission.
Moreover, earlier this year, the third annual "Consumer Protection Challenge'' Multilevel Marketing Conference emphasized the significance of anti-MLM activism and need for accessibility. During the Social Media Activist session, key presentations influenced the discourse. Roberta Blevins shared survey results highlighting the extensive global impact of anti-MLM content, with responses pouring in from 27 countries. This data may have played a role in shaping the FTC's focus on accessibility in reporting tools. Additionally, Alanda Carter, recognized as The Recovering Hunbot on YouTube, underscored the critical need for accessible tools provided by the FTC and other organizations to effectively combat MLM schemes that prey on especially vulnerable groups (such as having reporting tools be available to people of any linguistic background).
Behind the scenes, I have personally been involved in the development of several supplementary tools designed to empower consumers to report fraud and engage in anti-MLM activism. Together with Roberta Blevins and the Life After MLM podcast, with whom I’m working closely on this project, I am so looking forward to the technology and community we are building to play an even larger role in consumer protection and reporting of fraud in 2024. These forthcoming tools are poised to be a significant asset in the fight against MLM scams.
Opportunities to Get Involved
Even during relatively quiet months, when the rest of the world is paying closer attention to elections and holidays than regulatory developments, there are actions we can take to push the FTC further in the direction of fortifying consumer protection and intensifying their focus on combating fraudulent schemes.
As I was writing this newsletter, the FTC shared an announcement regarding an open meeting on Thursday, November 16th, 2023. This virtual event will open the work of the Commission to the public and will be followed by a time for members of the public to address the Commission. The meeting will be live-streamed on ftc.gov. You can participate in three ways:
Speak during the public comment section: Register for a two-minute speaking slot using the form provided on the FTC’s website.
Submit a video comment: Submit the URL of your pre-recorded video statement. Video comments should be less than 2 minutes long. I recommend uploading your video to Google Drive (and adjust the settings to share the link publicly), Vimeo, or YouTube—then you can copy and paste the link to your video into the form.
Submit a written comment: Submit a brief written statement using the provided form or email your statement to openmeetings@ftc.gov. Statements must be submitted no later than 8 p.m. ET on Tuesday, November 14, 2023.
*The Commission reserves the right to enforce the two-minute speaking slot time limit and may reject comments or videos that violate specified guidelines.
This open meeting provides an opportunity for consumers and advocates to actively engage with the FTC, furthering our mission to safeguard consumers and combat MLM scams. I have personally spoken at one of these open meetings and hope to be a speaker on the 16th as well, and I really cannot encourage you enough to just sign up and do it, because it turns out they are actually listening.
Subscribe for free to keep informed through my Consumer Protection updates, the Life After MLM podcast, and the ever-evolving landscape of consumer protection. We are making substantial strides in the ongoing battle against tech-savvy scammers, and the future of consumer protection is brighter thanks to these collective efforts.