LIFE AFTER ADVOCARE – WHAT HAPPENS AFTER ADVOCARE REMOVES MLM MODEL? YOUR OPTIONS!! announced that it was doing away with its network marketing business model and instead shifting to a “direct to consumer” model. AdvoCare cites “confidential talks” with the FTC, saying that the FTC has taken issue with “how AdvoCare compensates its Distributors.”
Instead of taking their chances with litigation against the FTC, the owners have decided to completely bail out, going for the more certain outcome where they LIFE AFTER ADVOCARE – WHAT HAPPENS AFTER ADVOCARE REMOVES MLM MODEL? YOUR OPTIONS!! to keep their profits instead of losing them to the government.
This all assumes that there’s a real threat from the FTC, which I’m not convinced that there was. I could be wrong, but something seems fishy.
With the exception of Herbalife, I’ve never heard of the FTC doing a confidential investigation. Usually LIFE AFTER ADVOCARE – WHAT HAPPENS AFTER ADVOCARE REMOVES MLM MODEL? YOUR OPTIONS!! storm the gates, guns blazing. I know they have the ability for confidential investigations, I’ve just never personally seen one in our industry.
There’s part of me that wonders if AdvoCare initiated these talks with the FTC so they could “blame the government” as a pretext for these changes.
I’m probably wrong, but there’s just something off about the message below.
The regulatory landscape has not changed at all since 2016. In fact, it’s improved. The FTC has relaxed quite a bit since the election. AdvoCare was not led by fools. They seemed to have had a good in-house attorney, they had LIFE AFTER ADVOCARE – WHAT HAPPENS AFTER ADVOCARE REMOVES MLM MODEL? YOUR OPTIONS!! focus on product…by all indications, they were ok. This sudden shift, due to a “confidential discussion with the FTC” seems bizarre.
It’s worth mentioning that there’s not a single expression of gratitude to the field that built up their company to its heights today. They deserved better.
The advocare press release:
AdvoCare International announces a revision of its business model from multi-level marketing to a direct-to-consumer and single-level marketing compensation plan.
AdvoCare has been in confidential talks with the Federal Trade Commission about the AdvoCare business model and how AdvoCare compensates its Distributors. The planned change will impact Distributors who have participated in the multi-level aspect of the business. Those who currently sell only to customers will not be impacted and there will be LIFE AFTER ADVOCARE – WHAT HAPPENS AFTER ADVOCARE REMOVES MLM MODEL? YOUR OPTIONS!!on Preferred Customers or retail customers’ ability to purchase products.
“Over the years, we have made many changes to the AdvoCare policies as the regulatory environment has shifted. Based on recent discussions, it became clear that this change is the only viable option,”
says Patrick Wright, AdvoCare’s Chief Executive Officer.
“Regardless of the model, we remain steadfastly committed to providing our high-quality nutritional products to our loyal customers who are seeking to live healthier lives. We stand behind the integrity and values of this company and LIFE AFTER ADVOCARE – WHAT HAPPENS AFTER ADVOCARE REMOVES MLM MODEL? YOUR OPTIONS!!continue to work with our dedicated Distributors to provide the best customer service to ensure AdvoCare products are available for decades to come.”
The company gave notice to its more than 100,000 Distributors on May 17 that, effective July 17, 2019, AdvoCare will revise the business model to a single-level distribution model, paying compensation based solely on sales to direct customers.
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