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СпутникиРНSpaceXРоскосмосNASAThe Federal Trade Commission today sued multilevel marketer (MLM) Amare Global Holdings Inc. and three of its principals for misrepresenting to parents and other consumers that its dietary supplements marketed for children and adults could treat or cure health conditions such as depression, anxiety and ADHD, and for misleading its seller recruits about their potential earnings as “brand partners.”Amare sells dietary supplements for children and adults, including Kids Happy Juice, Kids Mood+ and the Happy Juice Product Pack. In its complaint, the FTC alleges that Amare made false, misleading and unsubstantiated claims, and that Shawn Talbott (the company’s former chief science officer), Patrick Hintze (the company’s founding brand partner) and David Chung (the current CEO and majority shareholder) are responsible for these claims. Talbott and Hintze are subject to previous orders with the FTC that prohibit them from making false, misleading and unsubstantiated claims.“Amare’s claims were not only deceptive but dangerous since it was aware that some brand partners were taking advantage of parents looking for products to help their children, who suffer from serious conditions like depression and anxiety and need proven treatments,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Companies must make truthful marketing claims and abide by FTC orders, and those that fail to do so will be held accountable by the FTC.”The FTC alleges that Amare markets and distributes its dietary supplements through a network of salespeople who participate in Amare’s multilevel marketing scheme as “brand partners” and amplify the false, misleading or unsubstantiated claims.The defendants and their brand partners advertise Amare’s products on social media, including on Instagram, TikTok, YouTube and Facebook, with claims that their products will provide various health benefits, including treatment of certain diseases and mental conditions, both in children and adults. For example, the Amare defendants claim their products can improve a range of mental conditions in children and adults, including depression, anxiety and ADHD. The company’s brand partners also claim that Amare’s products are “scientifically backed” or clinically proven and will treat or mitigate depression, including by reducing the risk of suicide in children.In its complaint, however, the FTC alleges the defendants’ claims violated the FTC Act by claiming without substantiation that Amare’s products, including Happy Juice, Kids Mood+ and Kids Happy Juice will:Lower, reduce, or regulate cortisol;Raise, increase, or normalize serotonin, dopamine and GABA; andCure, treat, or mitigate depression, anxiety and ADHD.The FTC also alleges Amare made deceptive earnings claims about the money brand partners can make from selling the company’s products. Amare claims that anyone can join the company and earn specific stated amounts of income, such as $500 a month, or supplement or replace their current income, even if they have neither MLM sales experience nor a large social media following. The Commission vote authorizing staff to file the complaint was 2-0. The complaint was filed in the U.S. District Court for Central District of California.The Commission staff on this matter are Christopher Erickson, Abbey Wallace and Kimberly Nelson in the FTC’s Bureau of Consumer Protection.
The Federal Trade Commission today sued multilevel marketer (MLM) Amare Global Holdings Inc. and three of its principals for misrepresenting to parents and other consumers that its dietary supplements marketed for children and adults could treat or cure health conditions such as depression, anxiety and ADHD, and for misleading its seller recruits about their potential earnings as “brand partners.”
Amare sells dietary supplements for children and adults, including Kids Happy Juice, Kids Mood+ and the Happy Juice Product Pack. In its complaint, the FTC alleges that Amare made false, misleading and unsubstantiated claims, and that Shawn Talbott (the company’s former chief science officer), Patrick Hintze (the company’s founding brand partner) and David Chung (the current CEO and majority shareholder) are responsible for these claims. Talbott and Hintze are subject to previous orders with the FTC that prohibit them from making false, misleading and unsubstantiated claims.
“Amare’s claims were not only deceptive but dangerous since it was aware that some brand partners were taking advantage of parents looking for products to help their children, who suffer from serious conditions like depression and anxiety and need proven treatments,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Companies must make truthful marketing claims and abide by FTC orders, and those that fail to do so will be held accountable by the FTC.”
The FTC alleges that Amare markets and distributes its dietary supplements through a network of salespeople who participate in Amare’s multilevel marketing scheme as “brand partners” and amplify the false, misleading or unsubstantiated claims.
The defendants and their brand partners advertise Amare’s products on social media, including on Instagram, TikTok, YouTube and Facebook, with claims that their products will provide various health benefits, including treatment of certain diseases and mental conditions, both in children and adults. For example, the Amare defendants claim their products can improve a range of mental conditions in children and adults, including depression, anxiety and ADHD. The company’s brand partners also claim that Amare’s products are “scientifically backed” or clinically proven and will treat or mitigate depression, including by reducing the risk of suicide in children.
In its complaint, however, the FTC alleges the defendants’ claims violated the FTC Act by claiming without substantiation that Amare’s products, including Happy Juice, Kids Mood+ and Kids Happy Juice will:
The FTC also alleges Amare made deceptive earnings claims about the money brand partners can make from selling the company’s products. Amare claims that anyone can join the company and earn specific stated amounts of income, such as $500 a month, or supplement or replace their current income, even if they have neither MLM sales experience nor a large social media following.
The Commission vote authorizing staff to file the complaint was 2-0. The complaint was filed in the U.S. District Court for Central District of California.
The Commission staff on this matter are Christopher Erickson, Abbey Wallace and Kimberly Nelson in the FTC’s Bureau of Consumer Protection.