The Mary Kay legal department has issued a letter to all National Sales Directors about earnings claims. It seems they may be trying to head off trouble from the FTC, since it is widely known that Mary Kay consultants, directors, and NSDs repeatedly make false earnings claims. We even have tons of them documented here!
In the letter, MK tells everyone that the FTC is cracking down and sent letters to MLMs that made products and earnings claims. MK reiterates that no earnings claims whatsoever are supposed to be made, and:
“The FTC can consider a statement an improper earnings claim without mention of a specific dollar amount; the guarantee of “making money” or “financial freedom” appears to be enough. In addition, posts implying that starting a Mary Kay business could lead to a life of luxury present a very large risk to the Company and to the person publishing the post. Remember, top distributors of other direct selling companies have been sued personally for the earnings/lifestyle representations they have posted on social media.”
Everyone is supposed to remove from the internet any posts making earnings claims. (Fortunately, we have some good ones available here!)
And what about taking advantage of people by exploiting the COVID-19 pandemic and the financial devastation so many are feeling?
“The FTC has cautioned that it will be ultra-vigilant about anything that could be perceived as a direct selling company taking advantage of the COVID-19 fallout, particularly when it comes to team building. The FTC seeks to avoid actions by companies that could be perceived as trying to capitalize on a person’s recent job loss or their desperation to replace lost income.”
Well, congratulations, Mary Kay. You and your sales force have done that quite thoroughly already.
Also, Mary Kay consultants are reminded that any posts offering the opportunity (i.e. trying to recruit, offering the e-start special, etc) are not to be made on anyone’s personal social media That includes their personal Facebook account or their Instagram account. They are only allowed to make such advertisements in CLOSED customer groups or on business pages. But you know MK never enforces this one.