Yep. It's true. After taking comments on this proposal for about a year, the FTC finally decided that they would EXCLUDED MLMs from requirements of disclosing and verifying income claims, etc.
You can read the FTC's final document on it at this link:
http://www.ftc.gov/os/2008/03/R511993business.pdfVery sad and stupid in my opinion. Suddenly, they think MLMs are business opportunities?!

Mary Kay themselves calls it a business opportunity.
The scams of MLMs will continue. Consumers beware because the FTC isn't informing and protecting you as they should.