MLM Legal Cases | Federal Court Cases | Federal Agencies | State Courts | Subjects | MLM Legal Home


FTC v. 2xtreame Performance International LLC. (2000)

©www.mlmlegal.com
Welcome to the MLMLegal.com Legal Cases Project.  Here you will find hundreds of legal cases in the fields of MLM, Direct Selling, Network Marketing, Multilevel Marketing and Party Plan. The cases span federal and state courts as well as administrative cases from the FTC, FDA, IRS, SEC, worker’s compensation, unemployment compensation, etc.

The intent of the MLMLegal.com Cases Project is strictly educational, and, to provide insight into the legal issues and cases for an industry that spans the globe in upwards of 150 countries with sales volume exceeding $100 billion and distributor involvement in the tens of millions. MLMLegal.Com does not promote or endorse any company. MLMLegal.Com offers no value judgments, either pro or con, regarding the companies profiled in legal cases.

Jeffrey A. Babener, principal attorney in the Portland, Oregon, law firm Babener & Associates, and editor of www.mlmlegal.com, represents many of the leading direct selling companies in the United States and abroad.

www.mlmlegal.com www.mlmlegal.com www.mlmlegal.com www.mlmlegal.com

FTC v. 2xtreame Performance International LLC. (2000)

Case: FTC v. 2xtreame Performance International LLC. (2000)

Subject Category: Consent Order

Agency Involved: FTC

FTC v. 2xtreame Performance Internatinal LLC Complaint

Complaint Synopsis: The FTC alleged that 2xtream and it's officers used false and misleading trade practices in marketing a day-trading training program. The program was accused of not being a legitimate business, but a front for an illegal pyramid scheme.

Consent Details: 2xtream and its officers agreed to a stipulated final judgment with the FTC. The judgment granted a permanent injunction against some defendants' participation in a "prohibited marketing program" as that term was defined in the agreement, required that the defendants retain a performance bond before participating in any other MLM program, and enjoined them from making further false misrepresentations when marketing business opportunities. Other defendants were permanently enjoined from participation in MLM activities and required to pay over $2 million in restitution. The judgment also provided for an $80 million payment in the event that the value of any company asset was misrepresented to the FTC. The FTC also required the defendants to submit compliance reporting to the Commission. 

Practical Importance to Business of MLM/Direct Sales/Direct Selling/Network Marketing/Party Plan/Multilevel Marketing: The promotion of a pyramid scheme can be prosecuted in many ways. Here, the FTC brought charges of false trade practices, but the defendants may also have been charged under state or federal securities laws, or state anti-pyramid laws.

FTC v. 2xtreame Performance International LLC. (2000) , Civ. No JFM99CV3679 : 2xtream and its officers agreed to a stipulated final judgment with the FTC. The judgment granted a permanent injunction against some defendants' participation in a "prohibited marketing program" as that term was defined in the agreement, required that the defendants retain a performance bond before participating in any other MLM program, and enjoined them from making further false misrepresentations when marketing business opportunities. Other defendants were permanently enjoined from participation in MLM activities and required to pay over $2 million in restitution. The judgment also provided for an $80 million payment in the event that the value of any company asset was misrepresented to the FTC. The FTC also required the defendants to submit compliance reporting to the Commission.

www.mlmlegal.com www.mlmlegal.com www.mlmlegal.com www.mlmlegal.com

 


MLM Legal Home  | MLM Legal Cases  | Babener & Associates  | MLM Law Library  | Contact MLM Legal  |  Site Map