HONOLULU--(BUSINESS WIRE)--UNITE HERE Local 5 is petitioning the Federal Trade Commission (FTC) to investigate Multi-Level Marketing company Beachbody, LLC. Numerous affiliates of UNITE HERE have sent letters to the FTC urging it to investigate Beachbody. The affiliate leaders who signed their support represent tens of thousands of service industry workers in communities across the country. In addition to delivering the petitions to the FTC, UNITE HERE Local 5 is notifying state attorneys general about its concerns regarding Beachbody’s Multi-Level Marketing business model.
Questions about Beachbody, which is known for its “P90X” and “Insanity” workout DVDs and “Shakeology” fitness shakes, arose from research conducted by UNITE HERE Local 5. The research and analysis is available at www.beachbodybummer.org. According to UNITE HERE Local 5, Beachbody’s salespeople, independent non-employees typically recruited by other independent non-employees, must pay both upfront and monthly fees to qualify for the chance to make money. Unlike traditional sales jobs with guaranteed base rates of pay, Beachbody salespeople do not make any hourly income, instead being paid out through a complex system of commissions and bonuses which is not solely based on the value of what they sell - many of the commissions are dependent on recruiting other people to be salespeople. The site examines the company’s policy procedures, compensation plan and actual earnings by salespeople, as well as Multi-Level Marketing programs in general. In addition to providing information for potential salespeople, www.beachbodybummer.org also provides comparative information for consumers to consider before they decide to buy the company’s nutritional shakes and other products.
Campaign updates and other information including copies of the petition and an online email form to contact FTC Chairwoman Edith Ramirez can be found at www.beachbodybummer.org/ftc.
About Unite Here Local 5 – Local 5 is the Hawaii-based branch of the UNITE HERE union, which represents over 250,000 North American members, with a tradition of consumer advocacy.