At this point, it’s unclear if Advocare or the FTC initiated the talks. Generally the FTC does not engage in confidential investigations, which indicates that it may have been Advocare who first reached out to the regulatory agency. Why would they do that? The only plausible explanation would be that they are facing significant revenue shortfalls and that rather than layoff 100,000 distributors due to economic reasons, they can pin it on the FTC.
We’ll continue to update this story as we learn more.