Case #45-2021 – Monitoring Inquiry – Globallee, Inc.
BBB NATIONAL PROGRAMS
The Direct Selling Self-Regulatory Council
Case Number: 45-2021: –Monitoring Inquiry– Globallee, Inc.
Globallee, Inc. (“Globallee” or the “Company”) is a direct selling company located in Irving, Texas which was founded in 2019. The Company sells various health and wellness supplements and has 1.4 million distributors with offices in Japan, Canada, Australia, and the United States.
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 product performance claims disseminated by independent salesforce members on social media. DSSRC was concerned that the representative claims below communicate that Globallee’s Taka products and various other drinks can treat and protect against serious health-related conditions, including but not limited to COVID-19, cancer, and diabetes. While the inquiry was pending, DSSRC identified a number of additional posts making similar claims and brought them to the attention of the Company.
During the inquiry, DSSRC also identified several unqualified and atypical claims made on the Company’s website of the income potential that salesforce members can derive from the company’s business opportunity. The Company’s website also featured videos depicting Globallee salesforce members receiving large checks for significant amounts of money and depictions of lavish lifestyles and several video testimonials in which salesforce members discuss obtaining wealth, profits and depict large checks indicating earnings of significant income.
• Video depicting individuals on jet-skis, at an oceanside resort, and individuals holding a ten-thousand-dollar vanity check.
Globallee did not contest DSSRC’s concerns regarding the product claims made in the social media posts identified by DSSRC. The Company informed DSSRC that it disabled seven of the nine posts that DSSRC identified in its original Notice of Inquiry. The Company informed DSSRC that it attempted to contact all salesforce members responsible for the posts identified by DSSRC.
The Company noted the difficulty and delays it faced in contacting and educating its salesforce members regarding the necessity to refrain from disseminating unauthorized health-related claims and unqualified statements of significant earnings through the Company’s business opportunity. Further, the Company assured DSSRC that all of the posts at issue would be removed within 30 days.
With respect to additional social media posts brought to the attention of the Company during the pendency of the inquiry, Globallee informed DSSRC that one post had been removed and that another was made by an unaffiliated entity copying the Company’s brand.
Lastly, Globallee noted that it was in the process of addressing DSSRC’s concerns with respect to the earnings claims which originated from the Company website and which were brought to the Company’s attention after the DSSRC inquiry commenced.
DSSRC confirmed that seven of the original nine social media posts that were identified at the commencement of the inquiry were disabled. DSSRC determined that the Company’s actions to remove the posts were necessary and appropriate.
Notwithstanding the steps taken by the Company to disable these posts, during the course of the inquiry DSSRC identified a number of additional social media posts from Globallee salesforce members that referenced both the significant income that could be realized through participation in the Company’s business opportunity as well as claims discussing the health-related benefits that can be realized through using Globallee products. More specifically, Company salesforce members state, for example, that Globallee products will lower blood pressure and that it is no longer necessary to take blood pressure medication, fight cancer cells, lower cholesterol, and will treat health-related conditions such as diabetes, depression, and infections. Accordingly, despite Globallee’s actions to address the health-related posts and earnings claims brought to its attention, DSSRC remained concerned with the continued proliferation of such posts and claims.
The Company did not attempt to provide DSSRC with evidentiary support for product efficacy claims and, instead, took action to remove the posts and claims. While DSSRC recognized and appreciated Globallee’s commitment to reconcile the dissemination of posts when they are brought to its attention, DSSRC remained troubled that unsupported health-related claims continue to be disseminated by salesforce members.
As noted in previous self-regulatory cases, health-related claims must be supported by competent and reliable scientific evidence. The Federal Trade Commission (FTC) defines competent and reliable scientific evidence as “tests, analyses, research, studies, or other evidence-based on the expertise of professionals in the relevant area, that have been conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results.”
As such, in the omission of any evidence indicating that Globallee products are efficacious against the health-related conditions referenced in the social media posts of Company salesforce members, DSSRC recommended that the Company immediately remove any and all social media posts indicating that its products are efficacious against serious health-related conditions.
As noted in section 5 of the DSSRC Guidance for Earnings Claims in the Direct Selling Industry, lavish lifestyle claims are statements that either expressly state or imply through visual images or otherwise that participation in a direct selling business is likely to result in the ability of the participants to live a lavish or extravagant lifestyle. DSSRC will evaluate whether a claim is a lavish lifestyle claim based upon the context in which the claim appears and the potential net impression of such claim to the audience. Furthermore, according to the FTC, statements indicating that business opportunity participants while not necessarily becoming wealthy, can achieve career-level income are likely to be false or misleading when made to current or prospective participants.
DSSRC remained concerned with claims being communicated on the company website and determined that several of the statements (e.g., “Fast Track to Success”; “discover unlimited potential!”) could be reasonably interpreted by consumers as implied claims regarding the significant income potential from Globallee’s business opportunity. Furthermore, the company website includes several promotional videos and salesforce member video testimonials which include depictions of Globallee salesforce members receiving large cardboard checks showing large amounts of money, depictions of salesforce members at tropical resorts, and discussions of salesforce members obtaining significant wealth from the Globallee business opportunity.
DSSRC concluded that these claims could be reasonably interpreted by consumers as meaning that they can expect to earn significant (i.e., “full-time”) income from the Globallee business opportunity. Moreover, DSSRC determined that the statements “Fast Track to Success” and “discover unlimited potential!” contributed to this take-away. Accordingly, DSSRC recommended that in the absence of evidence demonstrating that Globallee salesforce members can generally expect to receive significant income from the Company’s business opportunity, that these depictions, videos, and implied claims be removed or significantly modified.
In closing, DSSRC remains particularly troubled by the continued proliferation of health-related statements and posts on the Company website and on social media regarding the efficacy of Globallee products and claims that Company salesforce members will receive significant income from the Globallee business opportunity. Globallee has been the subject of previous DSSRC inquiries and while during the pendency of this inquiry Globallee has expressed its commitment to monitor the social media postings of its salesforce members and make the necessary changes to its website, DSSRC continues to identify unsupported health-related product performance and earnings claims. As such, DSSRC remains extremely concerned regarding what appears to be significant systemic compliance issues with respect to the Company’s ability to appropriately monitor the claims being disseminated by its distributors as well as on the Company website, noting that the Company has been on notice of problematic product performance and earnings claims since August 2020.
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 VGH Solutions Inc. (Dr. Ho’s Circulation Promoter ), Report #6404, NAD/CARU Case Reports (September 2020); Molekule Inc. (Molekule MH1 Air Purifier, Report #6314, NAD/CARU Case Reports (October 2019); Triumph Pharmaceuticals Inc. (SmartMouth Dry Mouth Products), Report #6190, NAD/CARU Case Reports(June 2018); Good Health Naturally, LLC (Serranol Supplements) , Report # 5441, NAD/CARU Case Reports (March 2012); Nature’s Cure, Inc. (2-Part Acne Treatment), Report #4797, NAD/CARU Case Reports (February 2008)
 FTC Guide, Dietary Supplements: An Advertising Guide for Industry, www.business.ftc.gov/documents/bus09-dietary-supplements-advertising-guide-industry; Molekule Inc. (Molekule MH1 Air Purifier), Report #6314, NAD/CARU Case Reports (October 2019).
 Nature’s Cure, Inc. (2-Part Acne Treatment), Report #4797, NAD/CARU Case Reports (February 2008); Miralus Healthcare (HeadOn Headache Relief), Report#4465, NAD/CARU Case Reports (March 2006); Matrixx Initiatives, Inc./Zicam LLC (Zicam Cold Remedy Nasal Gel), Report #4286, NAD/CARU Case Reports (February2005); Green Pharmaceuticals, Inc. (SnoreStop), Report #4013, NAD/CARU Case Reports (March 2003).
 See Gano Excel USA, Inc. Case No. 30-2021, closed on 1/07/21.
 Keynote Remarks of Commissioner Noah Joshua Phillips DSA Legal & Regulatory Summit Washington, D.C., October 15, 2020 at https://www.ftc.gov/system/files/documents/public_statements/1581726/phillips_-_dsa_remarks_10-15- 20.pdf
 See https://bbbnp-bbbp-stf-use1-01.s3.amazonaws.com/docs/defaultsource/dssrc/dssrc_guidanceonearningsclaimsforthedirectsellingindustry_2020.pdf?sfvrsn=4ecfcd36_6
 See https://www.ftc.gov/tips-advice/business-center/guidance/business-guidance-concerning-multi-levelmarketing, Federal Trade Commission’s Business Guidance Concerning Multi-Level Marketing, paragraph 13, third bullet point.
 https://www.facebook.com/casey.barkholtz.3/posts/10219591040340171; https://www.facebook.com/rhonda.gill.14/posts/10157936141098235; https://www.facebook.com/AngelJay23/posts/1611008459069461