Neora, LLC
Also known as: Nerium International, LLC.
The FTC alleged that Neora, formerly Nerium International, operated an illegal pyramid scheme and made unsubstantiated earnings and health claims. In 2023, the district court ruled against the FTC on its claims.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC lawsuit against Neora, LLC (U.S. District Court for the District of New Jersey, filed November 1, 2019)
- Jurisdictions
- United States (federal)
The FTC’s pyramid and health-claim case failed in district court
The Federal Trade Commission sued Neora, LLC, formerly known as Nerium International, LLC, and its chief executive officer in November 2019. The agency alleged that the multi-level marketing company operated an illegal pyramid scheme and falsely promised recruits that joining could produce financial independence.
Neora sold supplements, skin creams, and other products through a network of brand partners. According to the FTC, the compensation structure encouraged substantial initial product purchases and additional monthly purchases. The agency alleged that brand partners received greater compensation from recruiting new partners than from retail sales. It also alleged that the majority of partners would not earn substantial income and would instead lose money, despite promotional claims about lifestyle-changing income, retirement, and six-figure earnings.
The complaint separately challenged claims for the EHT supplement. The FTC alleged that Neora and other defendants promoted EHT without substantiation as a way to prevent, reduce the risk of, or treat concussions, chronic traumatic encephalopathy, Alzheimer’s disease, and Parkinson’s disease.
The complaint was filed in the U.S. District Court for the District of New Jersey. The FTC’s 2024 case page states that the district court ruled against the agency on its claims in September 2023. In May 2024, the court also ruled that Neora could not recover its fees and expenses because the FTC’s position had been substantially justified. No consumer redress is stated for Neora in the supplied documents.
Sources
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- Enforcement action November 1, 2019
- Enforcement action May 29, 2024
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First recorded November 1, 2019 · Last updated May 29, 2024