FTC Files Complaint and Settlement
On April 27, 2026, the FTC filed a complaint in the Southern District of Florida against the Merritts. The same day, the couple agreed to a stipulated court order to resolve the case without admitting or denying the allegations.
LifeWave is a multi-level marketing (MLM) company that sells wellness patches claimed to offer various health benefits. The FTC focused on the Merritts’ income representations used to recruit new distributors.
Deceptive Earnings Claims Alleged by FTC
The Merritts promote LifeWave under the “This is It” brand and claim to have 250,000 promoters in their downline. They are currently ranked as 3 Star Presidential, the highest level in LifeWave’s compensation plan.
According to the FTC, the Merritts repeatedly told prospects they could earn:
- More than $25,000 per week
- Over a million dollars
- “Insane” or even unlimited income
Steven Merritt described the opportunity as “a spigot full of $100 bills” that “you can’t stop.”
Reality vs Claims – LifeWave Income Disclosure
The FTC cited LifeWave’s own 2024 Income Disclosure Statement, which shows:
- Only 21% of active Brand Partners received any commission payment in 2024
- Average annual earnings for active U.S. Brand Partners: $651 (before expenses)
- Fewer than 0.035% earned $25,000 per week or $1 million per year
The FTC concluded that the Merritts’ claims were deceptive because most participants do not earn the promised substantial income.
Weak Disclaimers Not Enough
When the Merritts added disclaimers, they were often in small text at the bottom of videos, hard to read, and less prominent than the big income promises. The FTC ruled these disclaimers did not make the claims compliant.
Terms of the FTC Settlement
Under the court order:
- Steven and Gina Merritt are permanently banned from making deceptive or misleading income claims
- They must email all members of their LifeWave downline about the FTC settlement
- The FTC will monitor their compliance for the next 10 years
No monetary penalty was imposed in this settlement.
Background and Future Impact
The Merritts are well-known speakers and are scheduled to speak at the Association for Network Marketing Professionals (ANMP) Annual Convention in May 2026. They have been credited with helping LifeWave reach $555 million in annual sales in 2024.
It remains to be seen how the permanent ban on deceptive earnings claims will affect their ability to recruit and grow their downline going forward.
