The Trump Network and ACN: Endorsing Multi-Level Marketing Schemes for Millions in Undisclosed Payments
Tier 4Documented2006-01-01 to 2024-01-18
Factual Summary
Over roughly a decade, Donald Trump lent his name, image, and personal endorsement to at least two multi-level marketing operations: ACN Opportunity, LLC, a telecommunications MLM selling video phones, and the Trump Network, an MLM selling customized vitamin supplements. In both cases, Trump received millions of dollars in payments while participants lost money, and in both cases, Trump later claimed he was merely a paid endorser with no operational role.
ACN was a multi-level marketing company based in North Carolina that sold video phone devices and telecommunications services through a network of independent distributors. From 2006 to 2015, Trump appeared at ACN recruiting events, promoted the company's products on an episode of The Celebrity Apprentice, and starred in promotional videos. At these events, Trump told prospective distributors that they had a great opportunity to make money without risk and that he had personally researched ACN. He told audiences that his endorsement was "not for any money." Court filings later revealed that Trump was secretly paid millions of dollars for these appearances and endorsements.
In October 2018, a group of plaintiffs filed a class-action lawsuit in the U.S. District Court for the Southern District of New York (Doe et al. v. Trump Corp. et al.) alleging racketeering and fraud. The plaintiffs, who were participants in ACN and two other companies Trump endorsed, claimed they were deceived into investing money based on Trump's endorsements. They alleged that Trump and his adult children knew the companies were unlikely to deliver on their promises but promoted them anyway in exchange for undisclosed payments. The RICO claims were dismissed in 2024 for insufficient evidence linking Trump's conduct directly to the investors' financial losses, and in January 2024, a federal judge dismissed the remaining claims.
Separately, in 2009, Trump licensed his name to a company previously known as Ideal Health, which was rebranded as the Trump Network. The company sold customized vitamins determined through a mail-in urinalysis test, a concept that outside scientists described as lacking credible scientific basis. Trump served as the company's top recruiter, traveling the country to promote the business at recruitment events. Court documents indicated that Trump was paid $1 million for the licensing deal. Before the Trump rebranding, Ideal Health had been the subject of multiple FTC complaints from distributors who alleged they spent thousands of dollars on products that generated no revenue. One of the company's products, Supreme Greens, had been the subject of an FTC lawsuit for falsely claiming it could cure cancer. The Trump Network's participation numbers initially surged after Trump's involvement but subsequently declined, and the company's owners filed for bankruptcy. Trump's licensing contract ended in 2011.
Primary Sources
1. Complaint, Doe et al. v. Trump Corp. et al., No. 1:18-cv-09936 (S.D.N.Y. October 2018)
2. Order dismissing RICO claims, Doe et al. v. Trump Corp. et al. (S.D.N.Y. 2024)
3. FTC complaints filed against Ideal Health, pre-2009
4. FTC enforcement action regarding Supreme Greens false health claims
5. Court filings disclosing Trump's compensation from ACN appearances
Corroborating Sources
1. The Washington Post: "The Trump Network sought to make people rich, but left behind disappointment," March 23, 2016
2. CBS News: "Behind the collapse of the 'recession-proof' Trump Network," 2016
3. STAT News: "Donald Trump, bad science, and the vitamin company that went bust," March 2, 2016
4. Newsweek: "Video Phones Could Land Donald Trump in Big Trouble," 2023
5. Courthouse News Service: "Federal judge dumps pyramid scheme lawsuit against Trump," January 2024
6. Truth in Advertising (TINA.org): ACN Inc. investigation file
Counterarguments and Context
Trump's legal team consistently argued that he was a paid endorser, not an operator or owner of ACN or the Trump Network, and that paid celebrity endorsements are common and lawful across industries. The dismissal of the RICO claims and the ultimate dismissal of the Doe v. Trump Corp. lawsuit lend support to the argument that Trump's endorsements did not rise to the level of actionable fraud under federal law. Defenders pointed out that ACN remained a functioning company and that the Trump Network's failure was attributable to its underlying business model rather than Trump's involvement. However, the factual record shows that Trump told prospective ACN distributors that his endorsement was not motivated by money, when in fact he was receiving millions in secret payments. The Trump Network's core product was built on what independent scientists characterized as pseudoscience, and the company Trump rebranded had already generated FTC complaints. The pattern across both ventures is consistent: Trump was paid to use his celebrity to recruit participants into businesses where participants bore the financial risk while Trump collected guaranteed fees.
Author's Note
This entry is classified as Tier 4 because the core evidence comes from investigative journalism, court filings from a lawsuit that was ultimately dismissed, and FTC complaint records. No court has adjudicated Trump's conduct in these MLM endorsements as fraudulent. The dismissal of the Doe v. Trump Corp. lawsuit does not exonerate Trump on the underlying factual questions; it reflects the legal difficulty of proving that a paid endorser bears liability for participants' losses in a multi-level marketing structure. The entry documents the pattern rather than a legal finding.