Reporting false & deceptive mlm claims

There are two types of false/deceptive claims; Health claims, and income claims.

  • False/Deceptive Health Claim(s):

Claims that the companies’ products can treat, cure, prevent, alleviate the symptoms of, or reduce the risk of developing diseases or disorders.

  • False/Deceptive Income Claim(s):

Claims of participants quitting their jobs, becoming stay-at-home parents, paying for their kids’ college tuition without incurring debt, traveling the world, and driving luxury vehicles, among other things.

Example: False Health Claim

An essential oil MLM claiming that their essential oil cures autism.

“I am actually seeing results; more eye contact, more interactions with us…”

Example: False Info Claim

“Scentsy has provided me with the financial freedom, so i don’t have to worry about my bills.”

Report false, misleading, or deceptive advertising:

If you believe that you are a victim of a false, misleading, or deceptive advertisement in the United States, you can submit a complaint to TINA.org.

The FTC encourages consumers to file a complaint whenever they have been the victim of fraud, identity theft, or other unfair or deceptive business practices.

Reporting a non-emergency complaint:

  • Cosmetics
  • Food
  • Supplements
  • More

If you are a consumer, health professional, or member of the cosmetics industry who wants to voluntarily report a complaint or adverse event (illness or serious allergic reaction) related to a cosmetic:

As part of DSA’s mission to promote the highest levels of business ethics among DSA member companies,[AKA don’t act like a Pyramid Scheme] their self-regulatory processes ensures that DSA member companies and their independent salespeople comply with the Code of Ethics.[AKA follow the laws]

Note: The MLM must be a current member of DSA.org

5.3.1 Product Claims

You are prohibited from making inaccurate and impermissible claims about any of Young Living’s products.
In particular, you must not make any claim that Young Living’s products are intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease.
You must also avoid making any statements and claims that are false or misleading concerning Young Living’s products.
You must comply with all laws, both state and federal, regarding any statements made.
You also must not diagnose any disease or disease condition or prescribe any Young Living product unless you are a licensed medical professional authorized to do so.
Anyone improperly diagnosing or prescribing Young Living’s products may jeopardize the future of Young Living and all of its members.
5.3.2 Income Claims
You are prohibited from making any income projections to prospective members that may create false or misleading expectations.
In their enthusiasm, some members are occasionally tempted to represent hypothetical income figures based upon the inherent power of network marketing as actual income projections. This is counterproductive since new members may be disappointed if their results do not meet their expectations.
The income potential of a Young Living member is great enough to be highly attractive in reality without resorting to artificial and unrealistic projections.
Young Living has prepared an compensation-plan designed to convey truthful, timely, and comprehensive information about the income that its members have earned.
A copy of the IDS is available online at youngliving.com/IDS.
Any time that you present or discuss the Compensation Plan or make any type of income or earning representation
about the Compensation Plan, you must provide any prospective members with a copy of the IDS.
Income and earning representations include:
Claims of actual, average, or projected earnings under the Compensation Plan; Income testimonials;
Claims about achieving an improved lifestyle (e.g., claims about affording large homes, luxury cars, and exotic vacations); and
Hypothetical examples of earnings under the Compensation Plan.

5.3.3 Compensation Plan Claims

When presenting or discussing the Compensation Plan, you must make it clear to prospective members that financial success with Young Living requires commitment, effort, and sales skill.
Conversely, you must never represent that individuals can be successful without diligently applying themselves.
Examples of misrepresentations in this area include:
It’s a turnkey system;
The system will do the work for you;
Just get in and your downline will build through spillover;
Just join and I will build your downline for you;
The company does all the work for you;
You don’t have to sell anything; or
All you have to do is buy your products every month.

doTERRA expects and requires its independent sales force to conduct themselves in accordance with the highest standards of ethical behavior.  doTERRA Wellness Advocates are expected to practice the following ethical behavior when introducing people to, and representing the Company and its products.  Violations of the Code of Ethics may subject the Wellness Advocate to disciplinary action by the Company depending on the materiality of the violation.  The following guidelines help ensure a uniform standard of excellence throughout the doTERRA organization.

  • Wellness Advocates Should:

    A. Be respectful of every person while conducting doTERRA related business.

    B. Conduct themselves and their business activities in an ethical, moral, legal and financially honest manner.   Wellness Advocates should not engage in activities and behavior that would bring disrespect or embarrassment to doTERRA, its corporate officers, employees, themselves, or other Wellness Advocates.

    C. Refrain from making negative or disparaging statements about other, doTERRA, other companies, their employees, or their products.

    D. Refrain from making negative or disparaging statements about other doTERRA Wellness Advocates.

    E. Be truthful in representations of doTERRA products.  Do not make diagnostic, therapeutic, curative or exaggerated claims.

    F. Give support and encouragement to customers to ensure that their experience with doTERRA is meaningful and rewarding.  Wellness Advocates should provide proper support and training to those they sponsor and who are in their Organization.

    G. Accurately teach and represent the doTERRA Sales Compensation Plan. Be honest in explaining the income one may earn under the Sales Compensation Plan.  Wellness Advocates should not use their own income as an indication of other’s potential success, or use compensation checks as marketing materials.

    H. Abide by all of doTERRA policies and procedures as they are currently found in this Policy Manual and the other Contract documents, and as they may be amended in the future.

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