Direct Selling Self-Regulatory Council Recommends My LaLa Leggings Discontinue Salesforce Member Earnings Claims

The claims that formed the initial basis of this inquiry were located on Facebook. They include:

• “Make your own hours and be your own Boss. Whether you’re looking to bring home some extra income or grow a substantial business My Lala offer you the ability to reach your goals! Join the My Lala Family, benefits include but are not limited to: 25% personal discount Up to 40% off Bulk Purchasing Options 25% commission on personal sales $5 Personally referred affiliate sign up bonus 5% Commission from 1st tier team sales, when you build a team!” 
• “Ready to earn extra income in 2021? Join my team today!”
• “My Lala Bosses has given hundreds of women of financial freedom from the comfort of their own home! Whether it be through online sales and referrals, or buying wholesale and selling retail, they truly offer a plan for everyone. Low start up costs, no monthly fees, no quota. No catch!”
• “If the ‘Stimulus’ is giving you a little ‘extra’ cash OR you are looking to earn some passive income (or come) My Lala Leggings (not just leggings) is hosting FREE Affiliate sign ups till Jan. 8th Sign up, start creating your own boutique, earn $$$!!”
• “*Do you want to or from home? *Spend more tie with your family? *Have financial freedom? *Be your own boss and work your own hours? If you answered ‘YES’ to any of these questions, then consider joining my team today! Join the My Lala Family, benefits include but are not limited to: * 25% personal discount * Up to 40% off Bulk Purchasing Options * 25% commission on personal sales * $5 Personally referred affiliate sign up bonus * 5% Commission from 1st tier team sales, when you build a team! * PSV over 500 28% personal commissions * PSV over 1000 30% personal commissions * PSV over 2000 30% personal commissions. Added 3% 2nd tier team commissions * Behind the scenes knowledge of upcoming SALES and NEW DESIGNS    **(PSV-Personal Sales Volume)** $10 to join (or $2.50 today with Sezzle!)”
• “Could you use an extra $100, $200, $500 a month to pay bills or get ready for the holidays? Sure who couldn’t. Do you post on Facebook and Instagram daily? Do you like not having to worry about inventory, shipping or starting fees? Well then you came to the right place! This weekend is free to enroll with Lala leggings. That’s right, no inventory, no shipping and post office runs, simply just posting online from friends to see.”
• “This (for me) is not a steady income, but it is very much contributing income. This has paid bills, bought birthdays, filled gas tanks, bough groceries, and it’s been minimal effort. If I wanted to put out the effort and be more social, I could definitely make a lot more.”
• “☆IF you want to start making real money today then contact me and I will help you sign up and start your business!!! ☆you could pay earn extra money for your summer vacation, pay bills, or have extra spending money, maybe even save for that new car!!!!! ☆This is your chance!!!”
• “Start your own leggings business! Your journey to financial freedom starts now!”
• “Good morning ladies!!! Hope everyone is well and safe. Like myself there are so many families quarantined at home and starting to go a little stir crazy. Like myself there is little wiggle room for extras you would normally indulge in. Well My Lala Leggings is excited to offer people the opportunity to earn some extra play money. My Lala Leggings has free sign ups with us. Yes FREE SIGNUPS!!!! It's a great way to earn some extra money at home in your pajamas.  Everything is done on line and you don't have to have physical contact with anyone.  This offer ends today April 27, 2020 at 11:59 pm!!! So take advantage of this fantastic offer.”
• “Every interaction you give to small business helps them get their business out there to new customers. It helps the single parents get ballet shoes or cleats for their kids, helps families to pay bills and buy groceries, it helps more than you know!” 

DSSRC informed My LaLa Leggings of its concern that a reasonable consumer may interpret these and similar claims to mean that salesforce members can earn significant, career level, or replacement income from the My LaLa Leggings business opportunity. 

As stated in DSSRC’s Guidance on Earnings Claims for the Direct Selling Industry, while DSSRC will evaluate any claim based upon the context in which the claim appears and the potential net impression of such claim to the audience, some words and phrases commonly used in earnings claims can carry a particularly high risk of being misleading to consumers. Such words and phrases include claims such as “financial freedom,” “full-time income,” “replacement income,” “residual income,” and “career-level income.” Furthermore, earnings claims must be substantiated and representative of a level of earnings that can be generally expected by the audience. 

My LaLa Leggings did not contest DSSRC’s concerns and, in addition to removing the challenged posts on social media, committed to increasing training for its affiliates and implementing an internal monitoring program.

DSSRC appreciated My LaLa Leggings’ good faith actions to remove the challenged claims from circulation on Facebook but remained concerned that seven Facebook posts remain active. My LaLa Leggings contacted the individuals responsible for the posts and reported to Facebook that the posts should be removed. Although Facebook has not been responsive to the request, DSSRC appreciates My LaLa Leggings’ continued efforts to have the posts removed and recommended using Facebook’s reporting mechanism for intellectual property violations. 

All BBB National Programs case decision summaries can be found in the case decision library. For the full text of DSSRC decisions, visit the DSSRC Cases and Closures webpage.