Searching for FTC earnings claims rule updates usually means one question: what are the rules for talking about income when you sell through a network marketing company? The short answer is that there is no finished, standalone FTC earnings-claims rule for MLM that you can point to, but the FTC already enforces existing law against false or unsubstantiated earnings claims, and recent cases show what it expects. This explainer separates what is verified from what is speculation.

What Is Actually Settled Today

The FTC’s business guidance on multi-level marketing explains that participants and companies must not make false or misleading claims about earnings, and that any representation about likely income needs a reasonable basis. This comes from Section 5 of the FTC Act and from the agency’s long-standing approach to business opportunity cases, not from a new MLM-specific regulation. That is why the guidance matters: it describes how the agency applies the law now. Read it alongside our FTC guidance on MLM and MLM regulations explained pages.

The Status of an Earnings Claim Rule

Federal regulatory agenda records at reginfo.gov have listed an Earnings Claim Rule at the pre-rule stage. In our last check, no notice of proposed rulemaking had been published, so no new binding rule exists to follow. Agenda entries can change, so check the official record yourself before you rely on any article, including this one, about a rule taking effect. If a rule is ever proposed, the process includes a public comment period, which is when companies and the public can weigh in.

What the Amway Order Shows

In 2026 the FTC and the state of Washington reached a $225 million settlement with Amway and two affiliates, which Npros News reported was entered by a federal judge on October 13. Venable’s analysis says the complaint alleged that few participants earned meaningful bonuses from selling product and that recruits were told they could replace a job or retire early. It says the injunctive relief works as notice of what the FTC expects from other companies. See our summary of the Amway FTC settlement.

Earlier Cases Set the Pattern

The same themes appear in older actions: the FTC’s $200 million Herbalife order in 2016 and $150 million AdvoCare order in 2019 both required changes to earnings representations and income disclosures. In 2021 the FTC sent notices of penalty offenses to more than 1,100 businesses, including multi-level marketing companies, warning that deceptive earnings claims can lead to civil penalties. A 2026 order involving Forever Living was announced on April 14. The pattern gives companies clear signals even without a new rule.

What This Means for Independent Representatives

Representatives can face scrutiny too. Avoid saying or implying that people will earn a particular amount, show lifestyle images as proof of typical results, or share screenshots of earnings without context. If you mention income at all, use the company’s current income disclosure, include its typical-results information and make clear that most participants earn little. When in doubt, talk about the product instead. Read how to read an income disclosure statement to learn what the numbers mean.

A Compliance Checklist

• Do not promise income, quitting a job or early retirement
• Do not share unsubstantiated testimonials as typical
• Use official disclosures, not memory
• Disclose that you are an independent representative
• Keep records supporting any claim you do make
• Remove old posts that no longer meet your standards
• Follow your company’s compliance policy

How to Stay Current

Check the FTC’s press release page monthly, follow your state attorney general and read the Direct Selling Association’s code updates. Read primary sources and be skeptical of rumors on social media about ‘new rules’ that cannot be traced to an official document. Our direct selling news roundup summarizes verified developments each month.

Why Companies Still Publish Income Disclosures

Many companies publish income disclosure statements voluntarily or because of FTC orders and industry codes. Those documents typically show the percentage of participants at each earnings level, how many earned nothing and how many are active. The numbers are useful because they replace anecdotes with distributions. When you see a company claim that ‘people are earning six figures’, compare it with the disclosure: if only a tiny share reach that level, the claim is not typical and presenting it as an invitation is exactly the kind of representation regulators scrutinize. Check each figure’s date and whether it is before or after expenses.

Questions to Ask If You Are Considering Joining

Ask the company or sponsor for the most recent income disclosure and read it before paying anything. Ask how many participants are active, what the median earnings are after costs and what share of income comes from retail customers. Ask whether the company has faced FTC or state actions and what it changed afterward. Keep a copy of any claims made to you in writing. These questions are simple, and a legitimate company or sponsor should be comfortable answering them. Evasion is itself information worth weighing.

The Bottom Line

The absence of a final rule does not create a loophole. The law already requires truthfulness and substantiation, and enforcement is active. Build your marketing around genuine product benefits and honest information, and you will be prepared whatever the FTC does next.

Key Takeaways

• No finished MLM-specific earnings rule exists as far as our last check; verify at reginfo.gov.
• Existing FTC law already prohibits unsubstantiated earnings claims.
• Recent orders show the FTC’s expectations.
• Representatives should avoid income promises and lifestyle proof.
• Rely on primary sources.

Frequently Asked Questions

Is there a new FTC earnings claims rule for MLM?

We found no published proposed rule at our last check; check reginfo.gov and the FTC for the current status.

Can I share income screenshots?

Doing so without substantiation and typical-results context risks being misleading; avoid it.

What is an income disclosure statement?

A document some companies publish showing how earnings are distributed among participants.

Who enforces these rules?

The FTC and state attorneys general, among others.

Sources

• FTC: Business Guidance Concerning Multi-Level Marketing
• FTC consumer advice: Multi-Level Marketing Businesses and Pyramid Schemes
• Npros News: Judge enters Amway $225 million FTC settlement (Oct 13, 2026)
• Venable LLP via JD Supra: $225 Million Amway Settlement Targets MLM Earnings and Recruiting Claims (Oct 7, 2026)
• Reginfo.gov: Unified Agenda

QastMe does not endorse any company. Information is for education only and is not financial or legal advice. Earnings in direct selling vary widely, and most participants earn little or no money. Review each company’s income disclosure statement before deciding.

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