Yes, this is correct! In fact, if there is anything we can learn from the latest FTC lawsuits against direct selling companies, FTC v. Vemma or FTC v. Herbalife, it is that non-compliant income and lifestyle claims can be the “door way” to investigation and regulatory action. That means that we must be careful in making such claims.
Section 8.3.3 – Income Claims, of the LifeVantage Policies and Procedures explains:
“While Independent Distributors 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 LifeVantage as well as the Independent Distributor making the claim, unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. . . Hypothetical income examples that are used to explain the operation of the Compensation Plan and which are based solely on mathematical projections, may be made to prospective Independent Distributors, so long as the Independent Distributor who uses such hypothetical examples makes clear to the prospective Independent Distributor(s) that such earnings are hypothetical and the Independent Distributor provides the prospect with a copy of the most current income disclosure chart prepared by the Company.”
That’s why we’ve combined cutting-edge research in the field of nutrigenomics with a powerful entrepreneurial vehicle.