If the company trains its distributors to recruit recruiters, the FTC's allegation writes itself; the Vemma order and the AdvoCare order both target exactly that pattern.
1. The claim they sold
AdvoCare sold health and wellness products — its flagship was the “Spark” energy drink — through a multi-level network of “distributors” and “advisors.” Pitched at conferences, webinars, podcasts, social-media videos, and in print, AdvoCare's business opportunity promised “unlimited income,” “financial freedom,” and the chance to “quit your regular job.” As one AdvoCare trainer told recruits: “recruit business builders who recruit business builders who recruit business builders” (FTC press release quoting the company's “Success School” training material).
2. The record
On April 2019, the FTC sued AdvoCare International, L.P., former CEO Brian Connolly, and top distributors Carlton and Lisa Hardman and Danny and Diane McDaniel, alleging that AdvoCare operated an illegal pyramid scheme in violation of Section 5 of the FTC Act, and that the defendants made deceptive earnings claims and provided others with the means and instrumentalities to do the same.
On October 2, 2019, the FTC announced a $150 million settlement. Under the stipulated final order against AdvoCare and Connolly: AdvoCare is permanently banned from operating, or assisting others in operating, any multi-level marketing program; the order requires a $150 million monetary judgment for consumer refunds. The Hardmans separately settled for $4 million (mostly suspended based on inability to pay) plus a multi-level-marketing ban. The McDaniels were sued but did not settle at the time of the FTC's October 2019 announcement; the FTC press release explicitly identifies them as defendants.
This is a civil settlement, not a criminal conviction. AdvoCare has publicly stated it “vehemently denies” that it is a pyramid scheme; under the stipulated order, the company consents to the injunction without admitting the underlying allegations (the order is binding regardless).
3. What it means for a buyer
The “Success School” line quoted in the FTC's release is the cleanest version of the failure mode: an MLM whose own training material makes recruitment the central act. A buyer evaluating any MLM today should look for that line in the company's own materials. If the company trains its distributors to recruit recruiters, the FTC's allegation writes itself; the Vemma order (see the Vemma dossier) and the AdvoCare order both target exactly that pattern.
4. Current standing
AdvoCare is permanently banned from operating an MLM under the stipulated order. Per the FTC press release, the company had voluntarily moved to a single-level compensation plan in 2019 before the settlement; the FTC's MLM ban now governs its structure going forward.