J&R Research was owned and operated out of Massena, Iowa by a smooth talker named Gerald McCarthy.  Rather than a MLM company J&R Research was a very good friend of MLM companies. As a matter of fact, sometimes Gerald McCarthy was too good of a friend.  J&R Research helps companies research various business opportunities and then helps them market their products.

Gerald McCarthy was in the business for over 22 years and could sell anything.  He had a voice that was magnetic and some people claimed hypnotizing.  Multi-level marketing companies were eager to have him work his charm to help sell their products.  Gerald McCarthy had made a name for himself. What people didn’t know is that Gerald McCarthy and J&R Research were involved in what is referred to today as scams.

J&R Research turned a deal with a company named Kaire International Inc., stating that they would help them market their name product. It was a dietary supplement which contained a natural ingredient called pycnogenol. They flooded the ads with deceptive claims regarding this product containing pycnogenol which included that it would cure cancer, diabetes, arthritis, heart disease, Parkinson disease, and about 20 more illnesses. Pycnogenol is a powerful antioxidant that is extracted from pine bark, not a miracle drug by any means.  While many people bought into this rubbish, the FTC was unimpressed and wanted proof.

In May of 2000, the FTC came down on J&R Research and Gerald McCarthy with great force.  The FTC was determined to put a stop to Gerald McCarthy and the lies he had running through multiple marketing campaigns. After several unsuccessful attempts to prove they were not in violation of the guidelines, J&R Research finally came clean with the fact that no tests were ever performed to validate these claims. J&R Research and Gerald McCarthy had to then sign a consent agreement with the FTC stating that any information that was ever published for marketing purposes must be backed by evidence.  This meant that all information had to be scientifically proven or could not be used to market any product for any client.

Due to the unpleasant publicity of J&R Research and Gerald McCarthy most were hesitant to conduct business with him after this incident.  Companies could no longer trust him to provide them with accurate marketing campaigns. Not only were they afraid of him being able to “pull one” on them, they also knew that the FTC was watching them like a hawk and did not want to get their company name in the middle of it.