Action Ends Busy Week for FTC

Today, the Federal Trade Commission announced that they have filed suit against Streamline International. The FTC charges that the Streamline operation and its deceptive claims violate federal law. It has filed a motion for a preliminary injunction and other equitable relief, including appointment of a receiver and an asset freeze. The FTC will seek to permanently bar the operation at trial.

For details, go to: http://www.ftc.gov/opa/2001/06/streamline.htm

The basis for the suit is three-fold:

First, the FTC alleges Streamline is an illegal pyramid due to the heavy emphasis on recruiting rather than product sales.

Second, that Streamline is making misleading and deceptive claims about their nutritional products (yes, another one).

And third, income claims. For example, "YES, YOU CAN MAKE $500 - $2,000 PER MONTH FOREVER!!!", and "NO MORE WORKING FOR THE NEXT 10, 20, 30 OR 40 YEARS. WORK PART-TIME THIS YEAR AND RETIRE NEXT YEAR."

My first exposure to Streamline was about three years ago when I found a quote they had taken from one of my articles, which they attributed to me, on their home page. The quote was deliberately taken completely out of context which radically altered it's meaning (to better support their over-hyped income claims). I wrote them and demanded to have the quote removed. They ignored me.

Now the Federal Trade Commission has a problem with their claims. Let's see if they ignore them.

Len Clements
MarketWave, Inc.


  Since 1989, Len Clements has concentrated his full-time efforts on researching and analyzing all aspects of Network Marketing. He is a professional speaker and trainer, and currently conducts "Inside Network Marketing" seminars throughout the world. Len is the author of the controversial book "Inside Network Marketing" (Random House) and the best selling cassette tapes "Case Closed! The Whole Truth About Network Marketing" and "The Coming Network Marketing Boom." He is a court recognized expert in the field of network marketing.

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