International Law

How to Make an Earnings Claim - For Network Marketers

I have no idea about who VitaMist is and whether their products are worthwhile.

But I do know that their simple statement about earnings claims is very useful.

# Income Claims

In their enthusiasm to enroll prospective Representatives, some Representatives are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of direct sales.

This is counterproductive because new Representatives may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved.

The Company firmly believes that the income potential of a VITAMIST® Representative is highly attractive, without reporting the earnings of others.

Moreover, the Federal Trade Commission and several states have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in direct sales.

While Representatives may believe it beneficial to provide copies of checks, or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact the Company, as well as the Representative making the claim, unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation.

Because VITAMIST® Representatives do not have the data necessary to comply with the legal requirements for making income claims, a Representative, when presenting or discussing the VITAMIST® opportunity or Marketing and Compensation Plans to a prospective representative, may not make income projections, income claims, or disclose his or her VITAMIST® income (including the showing of checks, copies of checks or bank statements).

Now that is how you make a negative earnings claims properly.

Full post as published by Misleading Advertising Law on April 02, 2008 (boomark / email).