Direct Selling Self-Regulatory Council Recommends Mary Kay Discontinue Certain Earnings Claims in Compliance Inquiry

For Immediate Release
Contact: Abby Hills, Director of Communications, BBB National Programs

703.247.9330 / press@bbbnp.org

McLean, VA – March 10, 2022 – The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs opened a compliance inquiry to review advertising from Mary Kay, Inc. that had been the subject of an inquiry from 2021. In this compliance inquiry, DSSRC found new social media posts that referred to the significant income that can be earned from the Mary Kay business opportunity. DSSRC recommended that these new earnings claims, made by Mary Kay salesforce members, be discontinued. 

The inquiry was commenced by DSSRC, responsible for independent monitoring of advertising and marketing claims in the direct selling industry, as part of its compliance process. Mary Kay’s business model is that of a direct sales company, which means Mary Kay products are sold by Mary Kay independent salesforce members, person to person, away from fixed retail locations. 

The claims in question include, but are not limited to:

  • “I love that you can have freedom and flexibility – side gig or full-time business with Mary Kay.”
  • “With just $30 you can earn 4-5 figure passive, residual income.”
  • “What would you do with extra income – big or small.”
  • “Sign up for as low as 49£ and make your way to financial freedom.”
  • ‘You can make residual or passive income.”
  • “If you are looking for an opportunity for a potential avenue of income, a change of career…. join the MARY KAY EXPANSION and earn BIG INCOME.”

 

As noted in previous DSSRC cases, including the 2021 Mary Kay inquiry, a reasonable consumer may interpret such earnings claims to mean that salesforce members can earn significant income from the Mary Kay business opportunity.

Mary Kay communicated to DSSRC that its compliance team has removed four of the six social media posts in question prior to receiving DSSRC’s compliance inquiry, and were in the process of trying to remove the remaining two social media posts.  

DSSRC appreciated the company’s commitment to having the content removed, and good faith effort to remove the social media posts from circulation. 

DSSRC will continue to monitor claims made about the Mary Kay business opportunity by the company and its salesforce to ensure that the dissemination of such unsupported product and earnings claims is not a systemic issue. 

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

###

About BBB National Programs: BBB National Programs is where businesses turn to enhance consumer trust and consumers are heard. The non-profit organization creates a fairer playing field for businesses and a better experience for consumers through the development and delivery of effective third-party accountability and dispute resolution programs. Embracing its role as an independent organization since the restructuring of the Council of Better Business Bureaus in June 2019, BBB National Programs today oversees more than a dozen leading national industry self-regulation programs, and continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-directed marketing, and privacy. To learn more, visit bbbprograms.org.

About the Direct Selling Self-Regulatory Council: The Direct Selling Self-Regulatory Council (DSSRC), a division of BBB National Programs, provides independent, impartial monitoring, dispute resolution, and enforcement of false product claims and income representations made by direct selling companies and their salesforce members across digital platforms. The DSSRC seeks to establish high standards of integrity and business ethics for all direct selling companies in the marketplace. 

 

Subscribe to the Ad Law Insights or Privacy Initiatives newsletters for an exclusive monthly analysis and insider perspectives on the latest trends and case decisions in advertising law and data privacy.

 

 

 

 

Latest Decisions

Decision

In National Advertising Division Challenge, Drip Hydration Voluntarily Discontinues Claims for its Ketamine IV Therapy

New York, NY – November 22, 2024 – Following a challenge brought by the National Advertising Division as part of its routine monitoring program, Drip Hydration voluntarily discontinued advertising claims for its Drip Hydration Ketamine IV Therapy.

Read the Decision Summary
Decision

NAD Finds Patented and Safety Claims for POOPH’s Pet Odor & Stain Eliminator Supported; Recommends Other Claims Be Modified or Discontinued

New York, NY – November 21, 2024 – The National Advertising Division determined that Ikigai supported patented and safety claims for their POOPH Pet Odor & Stain Eliminator, but recommended that other claims, including claims that POOPH eliminates odors and strains, be discontinued.

Read the Decision Summary
Decision

National Advertising Division Recommends SharkNinja Discontinue Certain Best Deep Carpet Cleaning Claims

New York, NY – November 19, 2024 – BBB National Programs’ National Advertising Division recommended that SharkNinja discontinue the claim “The Best Deep Carpet Cleaning Among Full-Sized Deep Carpet Cleaners** Based on ASTM F2828 vs. full-sized carpet cleaners above 14 lbs.”     

Read the Decision Summary
Decision

National Advertising Division Recommends T-Mobile Discontinue or Modify Advertising for Free iPhone and 20% Savings Claim; T-Mobile to Appeal

New York, NY – November 18, 2024 – In a Fast-Track SWIFT challenge, the National Advertising Division recommended that T-Mobile discontinue or modify its advertising offering a free iPhone and 20% savings on monthly wireless services to better disclose the material conditions of the offer.

Read the Decision Summary