|Underlying Misconduct:||Unfair Methods of Competition|
|Matter Type:||Federal Trade Commission|
|Relevant Jurisdiction(s):||US District Court for the Central District of California|
|Reporting Agencies:||Federal Trade Commission|
|Resolution Form:||Court Order|
|Agreement Date:||July 15, 2016|
|Monitor Reference Term:||Independent Compliance Auditor|
|Monitor Identity:||Affiliated Monitors|
|Monitorship Term:||7 Years|
|Monitor Selection Process:||
FTC solicited applicants publicly. It initially made the applications public, but took them down after press reports. Those applications included proprietary information of the applicants, such as rates and methodologies.
|Time to Propose Monitors:||60 days|
|Time to Engage Monitor:||60 days|
|Time to First Report:||6 Mos.|
|Monitor Required Qualifications:||
Not specified in Order/Agreement. Applications may shed light on required qualifications.
|Summary of Monitor's Scope:||
Review, assess and evaluate Host Organization's compliance with certain requirements of the Order.
|Summary of Monitor's Activities:||
Host Organization is: 1) paying multi-level compensation only in accordance with Order; 2) differentiating between Preferred Customers and Business Opportunity Participants; 3) collecting and maintaining retail sales information; 4) taking all reasonable steps necessary to monitor and ensure that Profitable Retail Sales and Preferred Customer Purchases are genuine sales of Products, rather than an attempt to manipulate the programs compensation plan; 5) taking all reasonable steps necessary to monitor and ensure that Profitable Retail Sales in fact occurred as reported in the information collected and maintained; 6) complying with the requirements and limitations relating to claimed Profitable Retail Sales; 7) complying with the requirements and limitations relating to Rewardable Personal Consumption; 8) complying with the limitation thresholds, targets, and requirements; 9) complying with and enforcing the requirements and limitations on leased or purchased business locations.
None specified in Order.