The FTC Said This Skincare Line Is A Pyramid Scheme And Claimed To Prevent CTE
on Friday claiming that skincare and wellness company Neora is actually an illegal pyramid scheme.
Neora, formerly called Nerium, sells"anti-aging" face creams and supplements through multilevel marketing, similar to Mary Kay or Amway, in which people sell products to their friends and family members and can earn money for recruiting new vendors. MLMs are legal, but the FTC said that Neora’s business model drifted into a pyramid scheme: People made more money recruiting new sellers than they did by selling the actual product.
Making things even harder for the sellers, Neora products are available for sale directly on the Neora.com website as well as Amazon, which means customers don’t need to go through a “brand partner” vendor to get the products.
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