- FTC staff says most MLM earnings disclosures are misleading,
- Post hoc bias found in recommendations to continue using dubious treatments.
- Commentators debunk claims made for magnesium products.
- Spring Energyâs âAwesome Saucecarbgelâ found to be mislabeled for carbohydrate content.
FTC staff says most MLM earnings disclosures are misleading. The Federal Trade Commission (FTC) has issued a 95-page staff report detailing findings from a February 2023 review of income-disclosure statements. The statements were available on the websites of 70 different multi-level marketing (MLM) companies that ranged from large, household names to smaller, less well-known companies. Such statements are often provided to consumers who are considering joining MLM companies. [Multi-level marketing income disclosure statements: An FTC staff report. Federal Trade Commission, Sept 2024] The report notes that many or most of the statements:
- do not disclose that displays of earnings omit participants with low or no earnings
- donât account for the expenses faced by participants, which can exceed their income
- emphasize the high earnings of a few participants
- entirely omit or only inconspicuously disclose key information about the limited earnings made by most participants
- present earnings information in a potentially confusing way, such as by giving average earnings amounts for groups that could have very different actual incomes, or using annual income figures that arenât based on what an actual group of participants made for the year
The report also notes that many MLM participants received no payments from the MLM companies, and the vast majority received $1,000 or less per year. [FTC staff issue report on multi-level marketing income disclosures. FTC press release, Sept 4, 2024] Consumers have been found to expect more supplemental income from MLM participation than they are likely to earn. [Bosley S. So you say your MLM offers âsupplemental incomeâ â what does that mean? TINA.org blog, July 16, 2024]
Post hoc bias found in recommendations to continue using dubious treatments. Researchers with the University of Torontoâs Department of Medicine and Princeton Universityâs Department of Psychology conducted a study they believe demonstrated susceptibility to post hoc bias. This is also termed the post hoc ergo propter hoc fallacy, which means the fallacy of âafter this, therefore because of this.â [Redelmeier DA, Shafir E. Post hoc bias in treatment decisions. JAMA Network Open 7(9): e2431123, Sept 4, 2024]
The researchers presented online to 1,497 people from North American communities. Each was given one of six hypothetical scenarios involving patients with vague symptoms who received a dubious treatment and a week later felt either improved or unchanged. The scenarios were:
- sore throat treated with a friendâs unused antibiotic prescription
- insomnia treated with a sugar powder supplement
- intermittent neck pain treated with acupuncture
- wrist pain treated by wearing a copper bracelet
- going bald treated with horse shampoo
- tiredness treated with a vitamin B12 supplement
Participants were asked whether treatment should be continued or discontinued.
The researchers also sent a secret shopper, claiming to have been tired, to 100 pharmacists for advice on whether to continue or discontinue taking vitamin B12 for improved energy. The shopper told 44 of the pharmacists that symptoms had improved and told 56 of them symptoms were unchanged. Under all scenario conditions, the percentage recommending continuing treatment was significantly higher when the scenario involved improved symptoms tha when it involved unchanged symptoms. The researchers noted:
Through scenarios involving diverse conditions, this survey study identified a persistent tendency toward continuing a treatment when initial care was followed by some subjective improvement. Although a modicum of enthusiasm might be expected, the substantially increased preferences for continuation are unwarranted because the improvement is not necessarily caused by the treatment. The post hoc bias might both increase a patientâs willingness to continue and also to recommend the treatment to others. The same error might also lead to undertreatment if a random adverse event leads to a worsening of symptoms. These strong patient intuitions are misplaced because the situation is not a randomized trial sufficient to prove effectiveness.
Commentators debunk claims made for magnesium products. Pharmacist Scott Gavura has found through a search of the Internet and TikTok videos that magnesium oil applied to the skin is promoted as a sort of panacea to help with sleep, muscle cramps, skin conditions, and âdetoxificationâ even though evidence suggests magnesium isnât absorbed through the skin. [Gavura S. Magnesium oil: Not so magical. Science-Based Medicine, July 18, 2024] Similarly, McGill University science communicator Jonathan Jarry has noted claims in Internet videos promoting magnesium supplements as sleep aids are not supported by scientific evidence. [Jarry J. Magnesium supplements for sleep may not work like a dream. Office for Science and Society, Sept 22, 2023]
Spring Energyâs âAwesome Saucecarbgelâ found to be mislabeled for carbohydrate content. The concentrated sugar found in certain carbohydrate gel and drink products is essential to the performance of endurance athletes such as cyclists, triathletes, and marathon runners during their races. Exercise scientist Nick Tiller has described how Spring Energyâs Awesome Saucecarbgel, which was sold at a premium price, was revealed to have only a third of its alleged highly concentrated carbohydrate content. Such a discrepancy between actual and labeled content could have endangered the lives of athletes who relied upon the product to meet sport-medicine guidelines on carbohydrate intake during athletic competition. [Tiller N, Spring Energy: The supplement exposed by skeptical athletes. Skeptical Inquirer, Aug 2, 2024]
Consumer Health Digest is a free weekly e-mail newsletter edited by William M. London, Ed.D., M.P.H., with help from Stephen Barrett, M.D. It summarizes scientific reports; legislative developments; enforcement actions; other news items; Web site evaluations; recommended and nonrecommended books; research tips; and other information relevant to consumer protection and consumer decision-making. The Digestâs primary focus is on health, but occasionally it includes non-health scams and practical tips. Items posted to this archive may be updated when relevant information becomes available. To subscribe, click here.
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