---
title: "A Potential New Fight Over FTC's 13(b) Authority"
date: 2019-05-19T15:39:06-04:00
author: Import Bot
canonical_url: "https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/a-potential-new-fight-over-ftcs-13b-authority"
section: Blog Posts
---
# A Potential New Fight Over FTC’s 13(b) Authority

  May 19, 2019

 

 

 

 

 

 

On May 17, [AdvoCare International LP](https://www.law360.com/companies/advocare-international-lp), marketer of ​“innovative nutritional, weight-management and sports performance products,” made the extraordinary announcement that it was abandoning its business model. It would no longer engage in multilevel marketing; all sales from here on in would be direct-to-consumer, a single-level marketing compensation plan.

In making this announcement, AdvoCare disclosed that it ​“has been in confidential talks with the [Federal Trade Commission](https://www.law360.com/agencies/federal-trade-commission) (FTC) about the AdvoCare business model and how AdvoCare compensates its Distributors.” AdvoCare further stated that “\[b\]ased on more recent discussions, it became clear that this change is the only viable option.”\[1\] This ​“change,” effective July 17, will reportedly affect approximately 100,000 distributors.

Wait, what?

Today [*Law360*](https://www.law360.com/articles/1161129/a-potential-new-fight-over-ftc-s-13-b-authority) published the article ​“A Potential New Fight Over FTC’s 13(b) Authority.” The article provides an analysis of the ​“existential threat” to the FTC fraud enforcement program.

To read the article, please click [here](https://www.law360.com/articles/1161129/a-potential-new-fight-over-ftc-s-13-b-authority).

 

 **Tags:** [Federal Trade Commission](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/federal-trade-commission), [FTC](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/ftc), [Section 13(b)](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/section-13b)

 

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