Analysis
Before sharing an income claim: a five-point checklist for network marketers
FTC guidance says typical results, expenses, evidence and the overall impression matter across social media and other channels.
By MLMGlobe
With information from Federal Trade Commission
An income claim can be explicit—a dollar amount—or implied through images of luxury, debt repayment, leaving a job or working only a few hours. Before sharing one, network marketers should ask five questions.
First, is the result typical for the audience, not merely possible? Second, does the number account for common expenses such as products, events, tools, travel and training? Third, is there reliable evidence available when the claim is made? Fourth, is any necessary disclosure prominent and immediately next to the claim rather than hidden behind a link? Fifth, does the overall message remain accurate when words, images, music and testimonials are considered together?
The Federal Trade Commission says a truthful testimonial from a high earner can still mislead if viewers interpret it as representative. A phrase such as “results not typical” or “results not guaranteed” is not automatically enough. The agency also says companies can be responsible for claims made by participants or agents, including on social media and in one-to-one presentations.
This checklist is editorial information, not legal advice. Rules differ by country, and company compliance policies may be stricter. When evidence for typical net results is unavailable, the safer course is not to make the earnings claim.
Sources
- 1Federal Trade Commission — www.ftc.gov