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Last Updated
Case Status
Federal Trade Commission, Plaintiff, v. AdvoCare International, L.P., a limited partnership; Brian Connolly; Danny McDaniel; Diane McDaniel; Carlton Hardman; and Lisa Hardman; Defendants.
FTC Matter/File Number
162 3109
Civil Action Number
Federal Court
Eastern District of Texas

Case Summary

Multi-level marketer AdvoCare International, L P and its former chief executive officer agreed to pay $150 million and be banned from the multi-level marketing business to resolve Federal Trade Commission charges that the company operated an illegal pyramid scheme that deceived consumers into believing that they could earn significant income as "distributors" of its health and wellness products. Two top promoters also settled charges that they promoted the illegal pyramid scheme and misled consumers about their income potential, agreeing to a multi-level marketing ban and a judgment of $4 million that will be suspended when they surrender substantial assets.