Direct Selling Self-Regulatory Council Recommends Ruby Ribbon Discontinue Salesforce Member and Website Earnings Claims
McLean, VA – January 5, 2023 – The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs recommended that Ruby Ribbon, Inc., a multi-level marketing company, discontinue certain earnings claims made by salesforce members on Facebook as well as by Ruby Ribbon on the company’s website.
The inquiry into Ruby Ribbon, which markets women’s apparel and accessories, 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:
- “I’m trying to help people think about not just trading time for money but building this asset that provides the potential for passive income…Some people just make $500, $1000, or $2,000 per month…but $500 or $1000 per month can change someone’s life”
- “Now is the best time to start a Ruby Ribbon business. Our Boutique-in-a-Box and New Stylist Success Plan puts new Stylists on the track to achieve her goals, her way, on her time! Our income opportunity is UNLIMITED!!!”
- “Unlimited income potential”
- “…you can still earn unlimited 40% commission on your personal sales, bonuses, incentive trips, etc., from Day One.
- You can sell sell sell and make UNLIMITED income”
- “We are hiring right now!! No earning cap! The sky is the limit! Our starter kit is just $69!! Our company is still a baby, but we are about to explode and now is the time to STEP IN! I'm looking for a few women that want to be their own boss, create their own schedule and live life on THEIR TERMS!”
- “…there are NO LIMITS on earning. Work hard and you can earn big. This is a fact”
- “Earn up to 40% commission on all sales with unlimited potential when you sponsor and lead a team.”
- “Decide where and when you work and how much you will earn.”
- “Physical, emotional, financial FREEDOM! Welcome to the sisterhood of Ruby Ribbon”
- “Are you looking for financial freedom?? Check out my sponsor's testimony:
- ‘…plus a way to truly gain financial freedom
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.
When DSSRC opened its inquiry and informed Ruby Ribbon of its concern that these types of earnings claims can lead a reasonable consumer to conclude that salesforce members can earn significant, career level, or replacement income from the Ruby Ribbon business opportunity, Ruby Ribbon did not contest DSSRC’s concerns. Instead, Ruby Ribbon took steps to have all of the salesforce member Facebook posts discontinued.
Though Ruby Ribbon is making a good faith, ongoing effort to have all identified claims discontinued, the two claims identified by DSSRC on the Ruby Ribbon website remain available to the public. DSSRC will continue to monitor the remaining claims to ensure that Ruby Ribbon is successful in its attempts to have all challenged posts discontinued or modified according to DSSRC’s recommendations.
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.
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