COMPLIANCE CORNER: INCOME CLAIMS

What are “income claims”, and what should you understand to effectively promote the business opportunity? As a Social Marketer, it’s important for you to ensure that anyone interested in Modere is fully informed and has clear and realistic expectations about the potential income opportunity.

From a regulatory perspective, the expectation is that representations about business opportunity, including earnings claims, must not be false, misleading or unsubstantiated. Essentially, prospective Social Marketers must have realistic expectations and be informed as they decide to engage in the business.

What does this mean for you as you promote the opportunity? Be honest and focus on the right messaging. Keep in mind that many people may be skeptical, particularly about product claims, opportunity claims, the direct selling industry as a whole, and their ability to be successful. Offering clear and straightforward representations of the effort required—and how the business has positively impacted your life—are key. Remember, lifestyle and hypothetical income statements or representations are considered, at a minimum, implied claims, and may also be classified as income claims. Accordingly, there are disclosure requirements. Please note that even if a statement is true, it can still be misleading.

For more detailed explanations and guidelines, please refer to both the Good Business Practices and Modere Income Disclosure in the documents and media section of the back office.