The Federal Trade Commission (FTC) is pursuing legal action against Steven and Gina Merritt, senior-level participants in the multilevel marketing (MLM) company LifeWave, for allegedly making false earnings claims to recruit new workers.

The FTC's complaint highlights that the Merritts misled potential participants by claiming they could earn substantial income from selling LifeWave's health and wellness products and recruiting others. Despite these claims, LifeWave's own income disclosure statements reveal that a significant majority of participants earn little to no money.

In a recruiting video, Gina Merritt exaggerated potential earnings, stating participants could make 'a buttload of money,' while Steven Merritt likened earnings to a 'spigot full of $100 bills.' However, the reality is starkly different, with 79% of active participants reportedly earning nothing in 2024.

As part of the settlement, the Merritts are prohibited from making misleading earnings claims and must substantiate any future claims made. They are also required to inform their downline participants about the FTC's allegations and the restrictions placed upon them.

This case marks the second instance in a month where the FTC has acted against MLM leaders for deceptive earnings claims, emphasizing the agency's commitment to protecting consumers from misleading business practices.