But you are correct. Most of those listed “signed up” at the behest of friends trying to get to a higher level but with no intention of selling. On the other hand, these “signed up” individuals have to buy $100-$150 just to “sign up” whether they want that much product or not.
These companies can’t have it both ways. They can’t claim their “distributors” make $100k when most “distributors” bought $100 worth of stuff just to feel like they got a good deal.
If you’re going to sign up every consumer as a distributor then you have to claim them on your reporting forms regardless of if they ever buy or attempt to sell something.
Distributors get counted as distributors on both sides of the aisle. Complaining the FTC is making up data is the fault of the company for reporting it that way.