FTC Files Two Earnings Claims Lawsuits in One Day on April 20, 2026

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Why it matters

On April 20, 2026, the FTC filed two separate enforcement actions against deceptive earnings claims, including FTC v. Wellington. The filings target unsubstantiated income promises in business opportunities and multi-level marketing schemes, marking an escalation in the agency's long-standing enforcement program against such practices.

The defendants in the second case remain unnamed. The FTC has not yet disclosed full details of either filing. The cases span multiple sectors including coaching, investments, MLMs, franchises, for-profit colleges, and gig work platforms.

The timing reflects broader regulatory momentum. The FTC has pursued rulemaking on earnings claims since 2022, with proposals in January 2025 to amend the Business Opportunity Rule and establish a new Earnings Claim Rule requiring written substantiation and consumer disclosures. The agency is seeking to strengthen its enforcement toolkit following the 2021 AMG Capital Supreme Court decision, which limited its remedial authority. Prior FTC actions have recovered hundreds of millions in consumer refunds.

Attorneys advising companies making income representations should treat this as a clear signal. Any earnings claim—whether express or implied—now faces heightened scrutiny. Businesses should document substantiation in writing and ensure claims are made in language accessible to consumers. The two-case filing on a single day, coupled with pending rulemaking, suggests the FTC intends to move aggressively on this front and may soon have stronger statutory tools to pursue civil penalties and refunds.

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