Settlement Reached in LifeWave Deceptive Income Claims Case
Steven and Gina Merritt have reached a settlement with the Federal Trade Commission (FTC) regarding allegations of misleading income claims tied to their promotion of LifeWave, a multi-level marketing (MLM) company. The settlement follows a lawsuit filed by the FTC on April 27, 2023, which charged the Merritts with violating the FTC Act by making unsubstantiated claims about income potential for LifeWave distributors.
Background on LifeWave and the Allegations
LifeWave markets a range of health products, including plastic patches that are said to deliver various health benefits. However, a recent review by BehindMLM questioned the scientific validity of these claims. According to the FTC, the Merritts have promoted LifeWave under the branding “This is It” and claimed to have 250,000 individuals within their distributor network.
In a social media post from April 2026, Steven Merritt indicated that he and Gina had achieved the rank of 3 Star Presidential, the highest level within LifeWave’s compensation structure. This rank is significant as it suggests a level of success that many distributors aspire to.
Deceptive Income Claims Under Scrutiny
The FTC’s complaint highlighted numerous instances where the Merritts asserted that LifeWave Brand Partners could expect substantial earnings. Statements included claims that “multiple people” were earning over $25,000 per week and that the opportunity could lead to “insane” incomes, even suggesting limitless financial potential. Steven Merritt characterized the LifeWave opportunity as a constant stream of income, likening it to a “spigot full of $100 bills.”
“The money keeps coming, even if you don’t show up, and you can’t stop it.”
However, the FTC's investigation revealed a stark contrast between the claims made by the Merritts and the actual earnings reported by LifeWave distributors. According to LifeWave's 2024 Income Disclosure Statement, only 21% of active Brand Partners received commission payments in the first month of 2024, and the average annual earnings for U.S. Brand Partners amounted to just $651. Alarmingly, fewer than 0.035% of active Brand Partners earned the promised levels of income.
Compliance Issues and Disclaimers
The FTC’s findings suggest that the Merritts occasionally included disclaimers about earnings in their promotional materials. However, these disclaimers were often presented in small print and less prominently than the income claims, rendering them ineffective for compliance purposes. The FTC noted that while disclaimers are better than making claims without them, their visibility is crucial in determining compliance with regulations.
Such practices raise important questions about how income opportunities are marketed in the MLM sector. The FTC's scrutiny highlights the need for greater transparency and accountability among MLM promoters to protect potential recruits from misleading income expectations.
What This Means for Distributors and Consumers
This settlement serves as a cautionary tale for both potential and current LifeWave distributors. For those considering joining LifeWave, the exaggerated claims about income potential should prompt careful consideration of the realities of MLM earnings. The FTC’s findings emphasize that while some may achieve high ranks, the overwhelming majority do not earn substantial income.
Additionally, existing distributors may need to reassess how they communicate income potential to avoid similar scrutiny. This situation illustrates the critical importance of integrity in marketing practices within the MLM community.
Looking Ahead
The LifeWave case underscores the ongoing regulatory attention towards MLM practices. As the FTC continues to monitor income claims within the industry, distributors should be prepared for potential changes in guidelines. Observers should watch for how LifeWave and other MLM companies adjust their marketing strategies in the wake of this settlement.
