The FTC settled allegations against Stormy Wellington, a high-level multilevel marketing (MLM) participant, for using false and unsubstantiated earnings claims to recruit new members for Total Life Changes and Farmasi MLMs. The stipulated final order prohibits Wellington from making deceptive earnings representations, requires written substantiation of all earnings claims, and mandates notification to her downline participants about the order’s prohibitions. No monetary penalty was imposed.
The stipulated order prohibits Wellington from misrepresenting potential or actual participant earnings, reasons for lack of compensation, or other material facts about MLM business ventures, including via images of luxury purchases or travel. She must substantiate all earnings claims with written evidence and provide such evidence to interested potential participants upon request. Additionally, she is required to notify all her downline MLM participants about the order’s prohibitions on deceptive earnings claims.
In-house legal teams at MLM companies, direct selling firms, or businesses using independent contractors for recruitment should review participant, influencer, and recruitment vendor agreements to prohibit deceptive or unsubstantiated earnings claims. Clauses governing income representations must require written substantiation of all earnings claims, limit statements to actual participant earnings data, and ban misleading implications of guaranteed income. Teams should also add clauses requiring participants to notify their downline of compliance orders, align agreements with mandatory income disclosure requirements, and include indemnification for deceptive earnings claims made by contractors. Marketing and advertising agreements with high-level recruiters should explicitly ban false earnings promises and require retention of substantiation records.
Entity
Stormy Wellington
Industry
OtherOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/04/ftc-takes-action-against-high-level-mlm-participant-who-deceived-workers-about-amount-money-they-can
2523145wellingtoncomplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/2523145wellingtoncomplaint.pdf
Wellington Order
https://www.ftc.gov/system/files/ftc_gov/pdf/Wellington-Order.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Stormy Wellington"
"April 13, 2026"
"used false or baseless earning claims to recruit workers, most of whom did not earn any money from the venture."
"Wellington will be prohibited from misrepresenting or assisting others in misrepresenting how much money others can earn from various business ventures."
The FTC issued an advance notice of proposed rulemaking seeking public comment on whether ad-optimization tools offered by online platforms may help scammers impersonate businesses and government agencies. This is a proposed regulatory inquiry, not an enforcement action against a named company; no penalty or remedy was imposed.
$2.5B
A federal court approved a revised order in the FTC's Amazon Prime case under which Amazon will accelerate and expand redress payments under the September 2025 $2.5 billion settlement, which resolved allegations that Amazon enrolled millions of consumers in Prime subscriptions without their consent and knowingly made cancellation difficult. More consumers now qualify for refunds, the maximum payment cap rises from $51 to $200, and all future payments will be distributed automatically starting October 1, 2026, with potential supplemental $149 payments by April 2027. Amazon has already issued more than $845 million in redress payments as of September 2026.
$225.0M
The FTC and the state of Washington filed a joint complaint and proposed stipulated order requiring Amway Corp. and two affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—to pay a $225 million judgment, the largest monetary recovery ever obtained from an MLM in an FTC action, over allegations that they used deceptive earnings claims and unfair tactics to recruit Independent Business Owners. The complaint alleges the companies falsely promised substantial income and recruitment success, pressured IBOs to buy products they could not resell, and instructed IBOs to falsely report sales. Nearly all of the judgment will be used as redress for IBOs who lost money, and the proposed order imposes structural reforms including a 70% resale requirement, independent audits of sales records, and a ban on approved providers charging new IBOs for first-year training.
$100.0M
FleetCor Technologies Inc. (now Corpay Inc.) and its CEO Ronald Clarke agreed to pay $100 million to settle an FTC administrative action alleging the company charged small business customers hidden and unauthorized fees for fuel cards and misrepresented gas savings, fraud-control features, and fees. A federal district court granted the FTC summary judgment on all counts in 2023, and a federal appeals court upheld that judgment and the permanent injunction in 2026. The settlement funds will be used to provide redress to harmed business customers.
FTC staff published FAQs on price transparency to help the automobile industry comply with the FTC Act, reiterating that an advertised vehicle price must be the actual price any consumer can pay, excluding only government-required charges. The guidance follows warning letters the FTC sent to 97 auto dealership groups earlier in 2026 and signals continued litigation against dealers that advertise one price but charge more through undisclosed fees. No specific entity was charged and no penalty was imposed.
The FTC rescinded its 2021 Policy Statement on Breaches by Health Apps and Other Connected Devices, which had purported to apply the Health Breach Notification Rule to health apps and connected devices that collect consumer health information. The rescission follows the Commission's 2024 update to the Health Breach Notification Rule, which already covers health apps and connected devices like fitness trackers, and implements an executive order directing agencies to eliminate obsolete guidance documents. No company was charged or penalized; this is a deregulatory action.