the idiot in my ward selling doTERRA is verbally telling people that a drop of oil on your baby's head will cure and prevent a cold. If distributors are making written claims on websites and advertising, then I agree that the MLM is probably going to get into trouble at some point.
However, the whole structure is designed so that distributors in large part are selling to friends and acquaintances where they can pretty much say anything they want verbally and it will never get back to the MLM. MLM's take advantage of this BIG TIME.