Network Marketing (M.L.M.) - Gerald McCarthy - J&R Research

ProgramCritique.com Review:

Gerald McCarthy is a sales representative with flair for writing perfect sales letters. Multi-Level marketing has been his area with his company J & R Research doing study over varied business opportunities during the past 22 years. He has developed audiotapes for many companies to help them sell their products. During the early years, he did the narrating himself, as he possesses a radio announcer’s voice.

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This does not necessarily mean the claims that J&R Research makes for the different companies are trustworthy. In May 2000, J&R Research Inc. of Massena, Iowa, has to agree with the US Federal Trade Commission that it cannot make any claims regarding  dietary supplements until it offers scientific proof for any treatment or cure.

The reliability claims voiced by J&R Research comes under further questioning when one finds that McCarthy collaborated a distributorship of Kaire International Inc. that used a substance pycnogenol while manufacturing dietary products for treating cancer, arthritis, heart disease, diabetes, multiple sclerosis, etc. J&R Research extensively marketed the products claiming them to be quite effective while the government said that in no way it is proved that pycnogenol can cure these ailments.

The Federal Trade Commission maintained that McCarthy and his J & R Research Corporation have violated the provisions of the Federal Trade Commission Act and it charged him because of the following points:

1. McCarthy is an officer of the J & R Research Corporation who is involved in policy making as well as its formulation.

2. The respondent has also served as a partner in the distributorship of Kaire International, Inc. products. He has made money through the commission.

3. As per Section 4 of the Federal Trade Commission Act the practices and acts of the respondent affects commerce.

The consent agreement between the FTC and J & R prohibited the respondents from claiming anything that the scientific test does not prove. Further, manipulating any finding to serve the advertising requirement was also highly prohibited.  The respondent could only make claims that the Food and Drug Administration permitted. Thus, the product had to give up claims, as it is a “scientific breakthrough”, or it has anything of the "ancient remedy” in it. The tag of a quick and effective cure also had to be removed.

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