Direct Selling Self-Regulatory Council Recommends MONAT Discontinue Earnings Claims

McLean, VA – September 5, 2024 – The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs recommended that MONAT Global Corp. discontinue certain earnings claims made on the MONAT website and by salesforce members on Facebook, Twitter/X, Instagram, and YouTube.  

The inquiry into MONAT, a direct selling company that sells haircare, skincare, and wellness products, was commenced by DSSRC through its ongoing independent monitoring of advertising and marketing claims in the direct selling industry and to further explore the findings of a non-governmental organization (NGO). 

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

• Promotion of 2023 incentive trips to Italy and France
• Promotion of MONAT’s Motor Club
• “Whether you’re looking to build a second revenue stream or a full-time business”
• “Being able to earn a car payment or a bigger car that will hold our whole entire family”
• “… replaced my previous salary”
• “Today, I received a deposit that put me over one million dollars in commissions.”
• “… she’s made over a million dollars in commissions, has paid off her debt and is saving for her family’s future. I’ve quit my full-time job and am doing MONAT.”
• “… seeing my sister become a millionaire by building other self-esteem has always been inspiring, but seeing her build her DREAM HOME for her family and stepping foot on the frame that we are going to make so many memories in with our babies was my stepping stone to what I can create for my family.”
• Depiction of $10,000 check accompanying statement that “This check is one of the many bonuses I’ve achieved, presented to me on one of the 8 amazing trips (hello Bahamas!) I’ve earned.”
• “… paying for your tuition is only a fraction of the good MONAT has done and will continue to do.”

Of the 25 claims identified during the inquiry, MONAT removed nine claims from the marketplace, made modifications to several social media posts, and is in the process of removing other challenged claims. DSSRC appreciated MONAT’s good faith efforts to have the unsubstantiated claims removed or modified. MONAT also terminated the accounts of two salesforce members that did not respond to MONAT’s takedown requests. 

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. 

As a result, DSSRC recommended that any references to “full-time business,” “earning a million dollars,” and other such claims be discontinued. 

With respect to various MONAT claims relating to incentives, DSSRC directed MONAT to the DSSRC’s Earnings Claims Guidance for the Direct Selling Industry, which states “For purposes of a DSSRC inquiry, an earnings claim is any claim, express or implied, communicated by either the direct selling company itself or by its independent salesforce members that conveys that salesforce members may earn or have earned company-sponsored incentives, including those lifestyle purchases described in section 2(B), and vacations or other rewards.” The Federal Trade Commission’s (FTC) Business Guidance Concerning Multi-Level Marketing states that “Some MLMs and MLM participants may present the MLM as a way for participants to get rich or lead a wealthy lifestyle. They may convey such representations through words or through images such as houses, automobiles, and luxury vacations. These are implied earnings claims, and such claims are deceptive if participants generally do not achieve such results.” 

DSSRC recommended that, wherever an incentive claim appears, MONAT include a clear and conspicuous disclosure that highlights the number of salesforce members who typically earn the advertised company incentive and that the disclosure be in close proximity to the triggering claim. DSSRC also stressed that any disclaimers used by MONAT must meet the FTC’s definitions for clear and conspicuous. 

In its company statement, MONAT stated that it will comply with DSSRC’s recommendations and “is committed to maintaining the highest standards of compliance” across its salesforce.

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.