Case #44-2021 – Government Referral – ByDzyne
BBB NATIONAL PROGRAMS, INC.
The Direct Selling Self-Regulatory Council
Case Number 44-2021: – Government Referral – ByDzyne
ByDzyne (or the “Company”) is a direct selling company that was founded in 2018 and which sells a variety of products that belong to different markets, such as the health and wellness, technology, beauty, and travel sectors.
Basis of Inquiry
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self- regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
DSSRC identified the following representative earnings claims being disseminated on the Company website and by the Company’s independent salesforce members on social media. DSSRC was concerned that the representative claims below communicate that ByDzyne independent salesforce members can typically earn significant income through the Company’s business opportunity.
Company’s Non-Participation in the DSSRC Process
DSSRC first brought the representative claims and issues identified above to the Company’s attention by sending a Notice of Inquiry to ByDzyne on July 2, 2021. The Company was provided with 15-business days to respond to the DSSRC inquiry pursuant to section (II)(4) of the DSSRC Policies and Procedures.
After the Company failed to provide a response within 15 business days, DSSRC made several efforts to contact the Company. After receiving no response, a 10- Day notice was sent to ByDzyne on July 28, 2021 by UPS 2-Day mail indicating that, if the Company failed to provide a response to DSSRC regarding the claims and issue within 10 business days, the matter would be referred to the appropriate government agency.
Notwithstanding the additional opportunity to respond to DSSRC’s inquiry, the Company again failed to respond to DSSRC. DSSRC also confirmed that all of the subject claims remain active and accessible to the public.
Referral to Government
$1,000,000 per month, unlimited income and that and that the business opportunity will provide “financial freedom.” All such claims appear unsupported.
As stated in the DSSRC Guidance on Earnings Claims for the Direct Selling Industry, it is misleading for a direct selling company and/or its salesforce members to make any earnings claims unless the direct selling company and/or its salesforce members have a reasonable basis for its claim at the time the claim is made; and have documentation that substantiates the claim at the time the claim is made.1 The Company has failed to provide DSSRC with any evidence indicating that salesforce members can generally expect to earn income at the levels expressed in its advertising and marketing materials
Despite DSSRC exercising its due diligence in attempting to contact ByDzyne several times, the Company did not respond to the self-regulatory inquiry. In accordance with section (II)(9) of the DSSRC Policies and Procedures, in the event the company whose marketing is the subject of a DSSRC inquiry fails to participate in the self- regulatory process, DSSRC may refer the matter to an appropriate government agency for review and possible law enforcement action.
Accordingly, based upon ByDzyne’s failure to respond to the self-regulatory inquiry, DSSRC referred this matter to the Federal Trade Commission.
(Case No. 44-2021 PCM, closed on 08/12/21)
© 2021. BBB National Programs, Inc.
 See the DSSRC Guidance on Earnings Claims for the Direct Selling Industry; https://bbbnp-bbbp-stf-use1- 01.s3.amazonaws.com/docs/default- source/dssrc/dssrc_guidanceonearningsclaimsforthedirectsellingindustry_2020.pdf?sfvrsn=4ecfcd36_6