Marketing Firm Must Prove Claims

A Nevada-based multi-level marketing company has agreed to substantiate all claims of profit and product performance to potential Washington state distributors of its products, the state attorney general said Thursday.

Distributors recruited by Equinox International Corp. were misled about how much they could reasonably sell and how much money they could expect to make, Attorney General Christine Gregoire said.

Las Vegas-based Equinox, a nationwide distributor of health and beauty products and water filter systems, reached similar agreements with 13 other states, Gregoire said. Washington’s agreement with Equinox was filed in Spokane County Superior Court.

In addition, the company has agreed to pay the states a total of $455,000 to compensate for legal expenses, she said. Washington will receive $10,000, Gregoire said.

As part of the Washington agreement, Equinox and Advanced Marketing Seminars, which trains Equinox distributors, admitted to no illegal activities or wrongdoing, she said.

, DataTimes