ClosureFebruary 16, 2026🔴 High Impact
Legendary Marketer Officially Closes After 9 Years
David Sharpe announced the permanent shutdown of Legendary Marketer on February 16, 2026, ending the platform's 9-year run. The affiliate program is no longer accepting new members and existing affiliates can no longer earn commissions. Thousands of affiliates who built businesses around the platform are now looking for alternatives.
Source: Official announcement via social media Comp Plan ChangeMarch 1, 2026🟡 Medium Impact
OLSP System Removes Lifetime Membership in 2026 Relaunch
Wayne Crowe relaunched OLSP System with new pricing of $199/month or $1,997/year, removing the $49 lifetime membership option that many affiliates relied on for high-ticket commissions. Community reaction has been mixed, with some affiliates calling it "an easy way to leave a company." The new structure offers 200% commissions plus 2-tier earnings.
Source: Community reports and official announcement BankruptcySeptember 18, 2024🔴 High Impact
Tupperware Files Chapter 11 Bankruptcy After 76 Years
Tupperware Brands filed for Chapter 11 bankruptcy protection in Delaware on September 18, 2024, citing mounting losses and declining demand. The iconic food storage brand struggled to adapt to e-commerce and modern retail as consumers shifted purchasing to Amazon and social commerce. Consultants are advised not to join at this time.
Source: Reuters, CNN Business LegalSeptember 1, 2023🟡 Medium Impact
Neora Defeats FTC in Landmark Pyramid Scheme Lawsuit
In September 2023, a federal district court ruled in favor of Neora (formerly Nerium International) on all five FTC pyramid scheme claims — making Neora the first direct selling company to defeat an FTC pyramid scheme lawsuit. The court denied the FTC's requested relief on all claims. However, in May 2024 the court also ruled that Neora could not recover its legal fees because the FTC's position was "substantially justified," signaling the case was genuinely close.
Source: Federal Trade Commission, Neora.com Business Model ChangeMarch 3, 2026🟡 Medium Impact
7K Metals Exits MLM — Transitions to Direct Retail and Affiliate Model
Idaho Falls-based 7K Metals announced on March 3, 2026 that it is transitioning from a network marketing model to a direct retail and affiliate-driven model. CEO Blake Davis cited "changing marketplace dynamics" and the "rising influencer economy" as drivers. Network marketing members who built multi-level teams will lose their downline income streams under the new structure. 7K Metals joins Beachbody and Rodan+Fields in making this MLM-to-affiliate pivot.
Source: 24-7 Press Release (Official) RegulatorySeptember 1, 2024🔴 High Impact
FTC Staff Report: 70 MLM Income Disclosures Analyzed — Results Are Damning
The FTC published a landmark staff report in September 2024 analyzing income disclosure statements from 70 MLM companies. Key findings: most disclosures are misleading or confusing, median annual earnings are extremely low (often under $1,000), and most MLM participants lose money after accounting for required purchases. The report found that income disclosures frequently omit expenses, use confusing formats, and make comparisons that exaggerate typical earnings.
Source: Federal Trade Commission (ftc.gov) Criminal FraudJune 1, 2024🔴 High Impact
FBI Increases Reward for OneCoin "Cryptoqueen" to $5 Million
The FBI increased its reward for information leading to the arrest of Ruja Ignatova — the "Cryptoqueen" behind the OneCoin fraud — to $5 million in June 2024, up from $250,000. Ignatova has been missing since 2017 after being secretly indicted. OneCoin defrauded an estimated 3 million victims of $4-25 billion worldwide. A UK court also issued worldwide asset freeze orders on her associates in August 2024. Co-founder Sebastian Greenwood was sentenced to 20 years in federal prison.
Business Model ChangeJuly 16, 2024🔴 High Impact
Rodan + Fields Pivots from MLM to Affiliate Model
Rodan + Fields announced a major business model pivot effective September 1, 2024 — transitioning from its multi-level marketing structure to a traditional affiliate program. The $75 million funding round supported the transition. The move was driven by competition from TikTok Shop and Amazon. Former MLM consultants received increased commissions on direct sales but lost the multi-level recruiting income.
Source: Retail Dive, Global Cosmetics News ClosureApril 17, 2024🔴 High Impact
Beautycounter Terminates ALL MLM Distributors — April 17, 2024
Clean beauty brand Beautycounter sent termination notices to all Brand Advocates (MLM distributors) on April 17, 2024, shutting down its entire MLM distribution model with essentially no advance warning. Thousands of advocates who had built businesses around Beautycounter lost their income streams overnight. The company continues selling products through direct retail channels. This is a stark reminder of the risk of building income on a platform you don't control.
Source: BusinessForHome.org, Reddit r/antiMLM BankruptcyAugust 12, 2024🔴 High Impact
Avon Products Inc. Files for Bankruptcy — 138-Year-Old Beauty Icon
Avon Products Inc. filed for Chapter 11 bankruptcy in August 2024, driven primarily by over $225 million in talcum powder personal injury lawsuit liabilities. U.S. operations continue under LG Household & Health Care Ltd., while international operations were affected. The Avon Company (U.S.) issued a statement reassuring Representatives that U.S. business continues unaffected.
Source: Davis Polk, British Beauty Council Business Model ChangeSeptember 30, 2024🔴 High Impact
Beachbody (BODi) Exits MLM — Pivots to Single-Level Affiliate Model
Beachbody announced on September 30, 2024 that it would convert its multi-level marketing model to a single-level affiliate program, effective November 1, 2024. The pivot came alongside a 33% workforce reduction (170 employees). Former coaches who built multi-level teams lost residual income from their downlines. Previous income disclosure revealed 57% of coaches earned $0 annually, and only 1% earned more than $10,000/year.
Source: Business Wire, Investing.com New FeatureMarch 17, 2026✅ Positive Impact
Home Business Academy Launches Built-In Email Marketing Tool
Home Business Academy released a fully integrated email marketing tool with pay-as-you-go pricing. Members get 300 free credits that never expire. The tool requires no domain setup, includes built-in list segmentation, bot protection, email validation, and the Email Alchemist AI writing tool for Premium members. Community reception has been overwhelmingly positive.
Source: HBA Monday Night Announcement RegulatoryJanuary 1, 2024🟡 Medium Impact
MONAT Global Subject to BBB Monitoring Inquiry Over Income Claims
MONAT Global was the subject of a BBB National Programs monitoring inquiry regarding income claim disclosures in 2024. The inquiry found that income disclosure statements were present but too small to be noticeable to viewers. Per MONAT's own 2024 income disclosure, the average annual income for all U.S. Market Partners was $758 — before expenses.
Source: BBB National Programs DSSRC RegulatoryJanuary 1, 2024🟡 Medium Impact
Arbonne Faces BBB Scrutiny for Income Disclosure Practices
A 2024 BBB National Programs review found that Arbonne's 2023 earnings statement showed typical consultants earned just $265 in gross commissions. The review raised concerns about how income disclosures were presented in promotional content. Arbonne had previously filed for Chapter 11 bankruptcy in 2020 before restructuring.
Source: BBB National Programs DSSRC Case #191-2024 📡
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