FTC Bans 3 from Multilevel Marketing

The FTC settled charges against three corporations and their owners and officers, accused of using deceptive practices to promote their multilevel marketing program and of operating an illegal pyramid scheme, DMNews reports. They have been banned from future multilevel marketing. The defendants - Trek Alliance Inc.; J. Kale Flagg; Richard and Tiffani Von Alvensleben; Harry Flagg; Trek Education Corp. and VonFlagg Corp. - are, respectively, a multilevel marketing company, its owners and officers, its training arm and its parent corporation. They sold products such as water filters, cleaning supplies, nutritional supplements and beauty aids through a nationwide network of distributors.