Direct Selling Self-Regulatory Council Refers Karatbars Earnings Claims to the FTC for Possible Enforcement Action

McLean, VA – March 6, 2023 – The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs has referred direct selling company Karatbars International to the Federal Trade Commission (FTC) for possible enforcement action. The referral comes after Karatbars failed to respond to a DSSRC inquiry into earnings claims made on social media by Karatbars salesforce members.  

DSSRC is an independent national advertising self-regulation program that monitors advertising and marketing claims in the direct selling industry. Karatbars is a multi-level direct selling company headquartered in Germany that sells gold bars and gift items in gold bullion and markets its business opportunity worldwide, including in the United States. 

At issue are social media earnings claims indicating that Karatbars salesforce members can earn significant income and achieve financial freedom by participating in the Karatbars business opportunity. Claims included:

• “For security Of Financial Freedom! I am looking for 5 people who are not happy where they are financially and want to change it.” 
• “Shout Out to My Karatbars Business Partner for being a part of this Global Mission of Financial freedom and setting up her Family for Generational Wealth... Let’s Go!!!!!”
• “If you’re a 9 to 5 job hater seeking financial freedom, I sincerely hope you watch this:”
• “Financial stability – the feeling of freedom, security and happiness. In our constantly changing world, we are searching for confidence in our future. Katbars International. The way to financial freedom.”
• “Karatbars International It's A Business, It's the New Money System backed Gold that takes you from Poverty Income to New Money System of Financial Freedom” 

DSSRC expressed its concern that such earnings claims convey the message that salesforce members can generally expect to earn significant and career-level income without having to worry about their finances.

After multiple attempts, Karatbars has failed to respond to DSSRC’s inquiry and, pursuant to DSSRC Policies and Procedures, has now been referred to the FTC for possible enforcement action. 

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.