Direct Selling Self-Regulatory Council Recommends Lifestyles USA Discontinue Earnings Claims

McLean, VA – August 5, 2024 – The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs recommended that Lifestyles USA discontinue certain earnings claims made on the Lifestyles website and by salesforce members on YouTube and Facebook.  

The inquiry into Lifestyles USA, a direct selling company that sells nutritional supplements, skincare, weight management, and health/fitness/wellness products, was commenced by DSSRC through its ongoing independent monitoring of advertising and marketing claims in the direct selling industry. 

The earnings claims that formed the basis of this inquiry include, but are not limited to:

• “The Lifestyles Compensation Plan is designed to pay you for your efforts. Whether you are building part-time income or a full-time business, the Compensation Plan is your road map to success and provides you with many rewards along the way…The sky is the limit on your earning potential”
• Image of a couple with a key to a large house with copy stating, “People around the world, just like you, are taking advantage of our proven Business Opportunity. Some are building new avenues of wealth and financial independence, while others are looking to supplement their income. Some are building new avenues of income... …financial freedom…”
• “I can tell you that by becoming a Lifestyles Distributor, you are starting down the path to better health, unlimited wealth…”
• “The opportunity to enjoy freedom, to spend more time with your loved ones, unlimited earnings and promotions while building your own business.”
• “Lifestyles has created many millionaires around the world…improve both your health and your wealth”
• “$9,840US per month!”
• “This is a big business that has the highest potential for common people to become a multi-millionaire with very minimal capital.”
• “As Company’s promised, do this Business in 3 to 5 years only. Then you will be one of the Lifestyles Millionaires"
• Images of checks with copy stating “…thank you my mentor Global highest income earner GMD Peng Mendoza; thank you team dreamers! Team GMD millionaires!!!”

During the inquiry, Lifestyles informed DSSRC that three of the challenged claims originated from a Lifestyles website targeted to an Israeli audience. Because these claims were not intended for the US market, they are outside of DSSRC’s jurisdictional purview and, as such, were not included in this analysis.

As stated in DSSRC’s Guidance on Earnings Claims for the Direct Selling Industry, 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. 

With respect to the claims that appeared on the Lifestyles US website, DSSRC appreciated that Lifestyles removed the “financial freedom” and “unlimited wealth” claims, among others, but remained concerned that several claims, including a modified claim promising that salesforce members can achieve “financial independence” and references that the Lifestyles Compensation Plan will “pay for the efforts” of building a “full-time business,” are still accessible and recommended that they be discontinued. 

Regarding claims made on Facebook, Lifestyles removed six of the posts. For those that remain available, DSSRC recommended that Lifestyles continue its good faith efforts to have the claims removed and provide DSSRC with copies of its correspondence to those individuals who were responsible for the posts.  

Regarding the one YouTube post, DSSRC determined that claim created an expectation that salesforce members will be able to earn enough income from the Lifestyles business opportunity to live a lavish lifestyle. DSSRC recommended that Lifestyles remove this video from YouTube.

In its company statement, Lifestyles USA stated that it “acknowledges the modifications recommended by DSSRC” and is “committed to addressing these promptly.”

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.