Cracking Down on Income Claims
Written by Frosty Rose
Mary Kay and its MLM ilk have long tussled with the FTC regarding deceptive income claims. Corporate wrings its hands and proclaims that its consultants are independent contractors and there’s only so much they can do (until it comes to suing the pants off people trying to recoup a fraction of their losses by selling products on eBay).
As a result, the FTC has gotten increasingly strict on how MLMs comply with the prohibition on income claims. And Mary Kay et al. have begun lowering the hammer on their distributors.
I hope any residual warm fuzzy feelings you may have still harbored for Mary Kay evaporate instantly when you read how Corporate responded to this director sharing a memory post from her deceased daughter, in which the daughter celebrated all her car “wins.”
Truly, Corporate, there was no winning for you in this situation. Do you risk the wrath of the FTC and let this income/car earning claim slide? Or do you tackle it head on, censure a grieving mother, and lose the soft pink image you’ve worked so hard to culture?
Looks like image problems are not as dire as a smack from the FTC, and you’ve opted for the latter. I, for one, would judge you harshly regardless of the choice you made.