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FTC sues Amare over mental health supplement claims

The freshly filed complaint signals growing FTC scrutiny of misleading gut-brain axis marketing, distributor-generated health claims and the use of “clinically proven” language in mood and cognition supplements.
The freshly filed complaint signals growing FTC scrutiny of misleading gut-brain axis marketing, distributor-generated health claims and the use of “clinically proven” language in mood and cognition supplements. (Getty Images)

The U.S. Federal Trade Commission (FTC) has sued Amare Global Holdings Inc. (Amare) and three company executives, alleging the multilevel marketing company illegally marketed dietary supplements as treatments for depression, anxiety and ADHD in children and adults.

Filed June 2 in the U.S. District Court for the Central District of California, the complaint targets products including Happy Juice, Kids Mood+ and Kids Happy Juice, which Amare promoted through social media and its brand partner sales network.

The agency names Amare, CEO and majority shareholder David Chung, former chief science officer Shawn Talbott and founding brand partner Patrick Hintze in the complaint.

“Amare’s claims were not only deceptive but dangerous since it was aware that some brand partners were taking advantage of parents looking for products to help their children, who suffer from serious conditions like depression and anxiety and need proven treatments,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, in the agency’s press statement.

FTC targets misleading gut-brain axis marketing

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According to the complaint, Amare and its distributors promoted the products on Instagram, TikTok, Facebook and YouTube using claims tied to the “gut-brain axis,” neurotransmitters and cortisol regulation.

The Commission alleged the company marketed the supplements as capable of increasing serotonin, dopamine and GABA levels while reducing cortisol and improving symptoms of depression, anxiety and ADHD.

FTC cited numerous examples from distributor social media posts. For example, in one post cited in the complaint, a distributor claimed Kids Mood+ “normalizes dopamine and serotonin” and supports focus, attention and emotional regulation in children.

Another described Happy Juice as “clinically proven” to lower depression and anxiety scores.

The complaint highlighted marketing tied to children’s mental health and suicide prevention. One distributor post cited by regulators promoted Kids Happy Juice alongside statistics about youth suicide and mental health disorders.

In addition, the FTC alleged that Amare failed to adequately monitor or remove misleading claims made by distributors, despite knowing such content was widespread across social media platforms. According to the complaint, some posts remained online for months or years.

FTC challenges income claims

Beyond the health claims, regulators also challenged Amare’s earnings representations tied to its MLM business model.

The complaint alleged distributors promoted the opportunity to earn at least $500 per month selling Amare products, even without prior MLM experience or a large social media following.

The FTC, however, said the company’s own income disclosure statement showed the typical distributor earned about $25 per month before expenses.

Amare had not issued a public response to the complaint at press time and the company and the involved parties did not reply to a request for comment prior to publication.