Direct Selling Self-Regulatory Council Recommends Scout & Cellar Discontinue Earnings Claims

McLean, VA – December 12, 2024 – The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs recommended that Scout & Cellar discontinue certain earnings claims made on social media.  

The inquiry into Scout & Cellar, a direct selling company that sells wine, coffee, and food 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 ability to earn uncapped income & create generational wealth!”
• “You can make it full time, some time, anytime from your phone, on social media, at a soccer game, at a wine tasting and during girls night” & “Low cost of entry! Bring in residual income weekly”
• “YOU CHOOSE your own path. It can be earning wine for yourself, earning extra money for shoes or, supplementing your income OR even replacing your income .
• “Secondly, the potential for financial freedom is a big draw for me”
• “Three years of drinking and sharing wine, making new friends, and building a business I LOVE. It gives me some financial freedom I would not have had otherwise.”
• “There are so many reasons why I joined this business: from leadership to community, from friendship to forming new relationships and meeting new people, from traveling to financial freedom, and much, much more. #financialfreedom”
• “My "Why"... there are SO many!!! #cleancrafted (zero added sugar, zero chemical and very low sulfites) delivered to my door – UMM – YES PLEASE!!!   Of course there is family, paying debt, travel, financial freedom etc.”
• “This is a plan for the future. What better way to spend $6 a month (for the next 4 months) than to invest it toward creating a future with more financial freedom. What would you do with that financial freedom?” and “I can be my own boss and make an unlimited income.”
• “I am looking for like-minded individuals who are passionate about helping others, growing a business, and creating financial freedom for family!”
• “Do you want financial freedom?”
• “First and foremost, Scout & Cellar opens the door to incredible opportunities. It is a chance for personal growth, professional development, and financial freedom.”

DSSRC was concerned that the challenged claims communicated the message that potential independent contractors can generally expect to achieve significant income, “financial freedom,” or replacement income through the Scout & Cellar business opportunity. 

Scout & Cellar did not attempt to substantiate the claims that were the subject of this inquiry. Rather, Scout & Cellar shared information about its compliance program and its efforts to keep its risk monitoring up-to-date and in line with Federal Trade Commission (FTC) guidelines.  

DSSRC recommended that the challenged claims be discontinued, and Scout & Cellar was successful in removing nine of the 11 earnings claims at issue. In addition, Scout & Cellar committed to DSSRC that it would continue its efforts to remove the remaining posts and has already reached out to the individuals who posted them as well as the platform where they appear to request their removal.

DSSRC acknowledged the good faith actions taken by Scout & Cellar to remove the remaining live posts and recommends that if the remaining posts are owned by individuals still affiliated with Scout & Cellar, that Scout & Cellar employ enforcement mechanisms, including suspension or termination of the accounts. 

In its advertiser statement, Scout & Cellar stated that it will “continue to use its best efforts to monitor the claims communicated by independent consultants to assure that any earnings statements are in compliance with applicable regulations.”

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.