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Neora Defends Rights of
Direct Selling Industry to FTC

Who is Neora?

Neora’s mission to make people better goes far beyond our best-selling, age-fighting products and life-changing opportunities. We know true success includes actively practicing gratitude by giving back to our communities and improving the lives of our neighbors who live there.

Neora Lawsuit Facts

On November 1, 2019, Neora filed suit against the FTC, challenging its attempt to retroactively change the law regarding direct selling companies without proper Congressional action or formal rulemaking. It is unfortunate that the FTC has now responded to our lawsuit by suing our company, citing product statements made years ago by one of our suppliers with which, interestingly, the FTC has now settled for no money.

The FTC has yet to provide any data to substantiate their outrageous claims against our business model. Neora has complied with all laws and the FTC’s most recent 2018 business guidance regarding direct sales business models, and is in no way a pyramid scheme. We have provided clear data analysis by Dr. Walter Vandaele that completely supports this fact. We are an American small business and will take this David and Goliath-like issue and fight for the rights of the men and women who deserve a place in our American economy, and look forward to justly prevailing on this issue in court.

Other notable companies like Facebook, Match.com, AND Yahoo! have also faced the FTC, so Neora is not alone. However, Neora is unique in that it will not be bullied into a settlement that would harm our hard-working brand partners and employees.

Here is a link to the official press release. 

Update - September 2, 2020

Following a recent ruling to transfer the FTC’s case from the FTC’s preferred venue in New Jersey, to our hometown of Dallas, Texas, we requested to dismiss our case in Chicago in order to file our counter claims in Dallas and combine this into a single case.

Neora and Jeff Olson look forward to challenging the FTC’s overreach. As we said from the very beginning, we intend to defend ourselves and stand up for our industry with vigor.

Additional Lawsuit Corrections

  • The FTC has launched an unfounded attack on the direct selling industry, in which they are trying to change the way direct sales companies can operate without going through the proper legislative process or formal rule-making.
  • Direct sales companies are legal under every state and federal law. Not to mention, the direct sales industry plays a significant role in the American economy, contributing more than $35.4 billion in U.S. retail sales in 2018 alone.
  • Neora is in the business of making people better and changing lives through products and opportunities.
  • Neora rejected an offer from the FTC to settle a threatened lawsuit, and moreover, stepped up to file suit challenging the FTC’s ability to retroactively change the law without proper authority from Congress or through formal FTC rule-making.
  • From day one, Neora was designed to comply with the FTC’s direct sales business guidance.
  • Neora has always had a method for customers to purchase product and become Preferred Customers separate from its Brand Partner enrollment and shopping experience.
  • Neora is focused primarily on customer acquisition. In 2017, roughly 9 new customers were enrolled for every new Brand Partner in the United States.
  • Neora’s Brand Partners do not need to make any personal purchases (aside from the initial $49 enrollment kit) in order to qualify for commissions.

Data Analysis

Neora retained renowned Ankura Senior Managing Director, Dr. Walter, to conduct a thorough analysis of Neora’s data and it stands up to the toughest scrutiny. The numbers in the chart below are from his analysis.

Graphic showing the features of a legitimate direct selling business, that show the FTC is overreaching in its Neora lawsuit.

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