Case #203-2025: Government Referral – Globe Life Family Heritage Division of America

BBB NATIONAL PROGRAMS

Direct Selling Self-Regulatory Council
Case #203-2025: Government Referral – Globe Life Family Heritage Division of America


 

Company Description 

Globe Life Family Heritage Division of America (“Globe Life” or the “Company”) markets supplemental health and life insurance policies through the use of a direct selling business model.1 The Company is located in Broadview Heights, Ohio and was founded in 1989.

 

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 was concerned that the challenged earnings claims overstate the amount of income that can be generally earned by the typical Globe Life salesforce member participating in the Company’s business opportunity.

Earnings Claims:

  1. “Baylor came to work with us in March of this year. He said he saw our post on Indeed and believed it would be something he would enjoy and that it would provide him with time and financial freedom.”(7/2022)
  2. “Know anyone looking for an awesome career with uncapped income potential, a true impact with clients, travel, residuals, a company with integrity that keeps its promises, training from one of the top in the nation, and generally rad people to work with…?" (5/2024)
  3. “No matter your experience, Family Heritage insurance sales careers can allow you to find financial security not just for you but also for the communities we serve. You determine your worth, bolstered by our compensation packages, monetary and travel incentives, and training opportunities.” (Globe Life website)
  4. “Want to earn what you're worth… You will determine how fast you advance and how much you earn with us!” (Globe Life website)
  5. “Our sales and management professionals take advantage of the fact that there is no limit to the amount they can earn. Put simply, the more you work, the more you will get paid.” (Globe Life website)
  6. “Let's cut to the chase. You want to know how many commas you can earn on your check through an insurance sales career, right? Ground-breaking news for you: you determine your worth. Your check depends on how hard you work.” (Globe Life website)

 

 

Company’s Position

In response to DSSRC’s Notice of Inquiry, the Company stated that it is not a multi-level marketer (MLM) and believes that claims identified by DSSRC fairly describe the sales agent opportunity with Globe Life.

Globe Life explained that the Company contracts with independent contractor sales agents to sell Globe Life insurance products and that its insurance agents are generally career sales professionals who must be licensed to sell insurance, and who operate in a highly regulated environment. Globe Life noted that its agents are independent contractors who enter into a written sales agent contract and the commission schedule is disclosed. It stated that unlike MLM business models, nothing is sold to the agent. An agent can purchase a policy on an individual or family basis if they choose. Globe Life does not seek to generate income by having its agents pay money into the Company.

According to the Company, unlike an hourly or salaried employment position that is compensated at a fixed amount, there is no cap or limit on the commission income that Global Life agents can make. Insurance sales agents have the flexibility to choose how much they want to work. There are no set hours. The more that the agents work, the more likely they are to make sales and the more income they will generate.

The Company asserted that once insurance sales are made, the sales can provide renewal commission income for agents over many years as customers continue to pay their premiums. Many agents generate significant annual income from renewal commissions on top of commissions from new sales. Renewal commissions can also be an important source of retirement income for agents.2

With respect to the four statements taken from Globe Life’s web page that is headed “Become an Agent,” the Company stated that the four claims at issue are expressly made in the context of an insurance sales opportunity.

Globe Life emphasized that, as with any article or webpage, it is essential to consider the statements within the context of the whole article. The Company stated that, among other things, the full context emphasizes that:

(a)    The agent work is commission-based insurance sales;
(b)    compensation is performance based – the harder an agent works, the more sales they will make, and the more commissions they will earn;
(c)     because the sales agent position is based on commission, hard work and sales performance are important factors in determining an agent’s income;
(d)    agents can earn bonus compensation tied to their performance; and
(e)    renewal commissions are a uniquely rewarding aspect of an agent’s compensation that can provide income for agents as policyholders continue to make their premium payments.


The Company contended that because insurance agents are independent contractors who choose their commitment level, Globe Life does not promise prospective or contracted agents any particular amount of compensation or publish compensation data. Instead, the Company provides its agents with a commission schedule setting forth what the agent will earn from a particular product sale and informs the agent of the bonus criteria. Globe Life stated that its consistent experience is that the vast majority of harder working agents set more sales opportunities, make more sales presentations, and convert more presentations into sales. According to the Company, setting more sales opportunities and converting the presentations into sales results in more income for the agent in the form of commissions, bouses, and renewal commissions – i.e., agents are told what a successful sales effort looks like and Globe Life salesforce members only generates income when sales are made to third parties.3

The Company informed DSSRC that it reviews its website statements for accuracy before posting. Accordingly, after reviewing the claims in the context of all of the information provided on its website, the Company concluded that the presentation of the opportunity is accurate.

Globe Life stated that it stands by its website content describing its sales agent opportunity, including without limitation the common sense, empirically supported statements that the Company’s harder working insurance agents make more money and enjoy uncapped earning potential.

With respect to the two social media posts brought to its attention by DSSRC, the Company noted that the posts were made by independent contractor agents. It was the position of Globe Life that the posts are accurate, as they address the flexibility and uncapped income potential of a commission-based insurance sales agent position. Globe Life stated that uncapped commission income is an agent pay feature that is common in the insurance industry.

The Company clarified that the agency behind the July 2022 post has shared content over 200 times, with many of those posts emphasizing the performance-driven and incentive-based income model associated with working as a commission-based insurance sales agent. Additionally, Globe Life informed DSSRC that the group responsible for the May 2024 post in question has since published more than 60 social media posts.

 

Analysis

Globe Life declined to provide any substantive evidence to substantiate the earnings claims at issue, arguing that it was not an MLM and, as such, was not subject to DSSRC’s self-regulatory purview.

DSSRC disagreed with the Company’s assertion. Pursuant to the DSSRC Policies & Procedures, DSSRC’s jurisdictional purview is not limited to MLMs, but, instead encompasses “earnings claims and product claims made by any direct selling company.”4 The Company did not dispute that Globe Life operates using a direct selling business model and this is confirmed by documents that have been publicly disseminated by the Company.5 In past DSSRC inquiries, other companies that use the direct selling model to sell supplemental insurance products have participated in the self-regulatory process6 and similarly, here, DSSRC determined that it had jurisdiction to inquire about the earnings claims disseminated by Globe Life.

With respect to the earnings claims that were the subject of the inquiry, DSSRC determined that it was incumbent on Globe Life to provide a reasonable basis for the unqualified earnings claims communicated on its website and by its salesforce members. Pursuant to the Federal Trade Commission’s (FTC) 1984 Policy Statement Regarding Advertising Substantiation (the “FTC Policy Statement”), advertisers and ad agencies are required to have a reasonable basis for advertising claims before they are disseminated.7 In addition, the FTC Policy Statement states that “[o]bjective claims for products or services represent explicitly or by implication that the advertiser has a reasonable basis supporting these claims. These representations of substantiation are material to consumers. That is, consumers would be less likely to rely on claims for products and services if they knew the advertiser did not have a reasonable basis for believing them to be true. Therefore, a firm's failure to possess and rely upon a reasonable basis for objective claims constitutes an unfair and deceptive act or practice in violation of Section 5 of the Federal Trade Commission Act.”8

In addition, according to section 13 of the FTC’s Business Guidance Concerning Multi-Level Marketing, an MLM’s or its participant’s representations related to the business opportunity, including earnings claims, violate section 5 of the FTC Act if they are material to consumers and false, misleading, or unsubstantiated. This is true wherever the representations are made, including on social media, in live presentations, in one-on-one conversations, or in any other medium.9 It its further noted that “[a]ny earnings claim should reflect what the typical person to whom the representation is directed is likely to achieve in income, profit, or appreciation."10 Although DSSRC requested Globe Life answer several important questions, including those about the typical income of Globe Life salesforce members, the Company elected not to provide a response.

The online claims before DSSRC include promises that, regardless of experience, Globe Life salesforce members will be provided with “financial freedom” and “financial security” with “uncapped income potential.” On the Company website, prospective salesforce members are informed that “there is no limit to the amount they can earn … the more you work, the more you will get paid,” “… you determine your worth. Your check depends on how hard you work”11 and that “[y]ou will determine how fast you advance and how much you earn with us!” DSSRC concluded that these unqualified claims can be readily understood by a reasonable consumer in their literal context, implying unlimited earnings and suggesting that earnings are limitless and easily achievable.

Globe Life contended that the claims were accurate because they address the flexibility and uncapped income potential of a commission-based insurance sales agent position, and that uncapped commission income is an agent pay feature that is common in the insurance industry. DSSRC was not persuaded by the Company’s position. As with any commission-based business opportunity (including direct selling and affiliate marketing) salesforce earnings are tied directly to sales and are therefore subject to practical limitations, such as market demand, individual effort, competition, and other factors, making it inaccurate to claim that earnings are truly unlimited or uncapped.

The FTC has prohibited businesses from making false, misleading, or unsubstantiated income claims, including representations of uncapped or unlimited earnings potential.  For example, in a 2019 case involving AdvoCare International, L.P., the FTC alleged that the Company marketed its business opportunity through personal stories touting an improved lifestyle and unlimited income.12 Similarly, in a 2015 investigation of Vemma Nutrition Co., Inc., the FTC took action against the Company for promising unlimited income potential to prospective salesforce members (i.e., “Unlimited possibilities! We don't place any barriers ahead of you; we let you determine your own success. Achieve goals like obtaining financial freedom, receiving rewards and recognition, having more time for the things and people who matter the 1nost, enjoying flexible schedules, and taking the opportunity to be your own boss and define how much or little you want to make. If you can dream it, you can achieve it!”)13

Similarly, section 6 of the DSSRC Guidance on Earnings Claims in the Direct Selling Industry states that some words and phrases are prohibited when made to a general audience of prospective or current salesforce members. Such words and phrases include statements such as “quit your job,” “be set for life,” “make more money than you ever have imagined or thought possible,” “unlimited income,” “full-time income,” “replacement income,” “career-level income,” or any substantially similar statements or representations. Other terms, such as “passive income” and “residual income,” are prohibited when they convey that income can be continuously earned by salesforce members with little or no ongoing effort. Some words or phrases carry a particularly high risk of being misleading to consumers when communicated in a general context. Such words and phrases include but are not limited to “financial freedom.”14

Direct selling companies have a responsibility to ensure that any express or implied earnings claims made to potential recruits, or the general public, are clear, substantiated, and reflective of what can reasonably be expected by the typical member of their salesforce.

For the reasons set forth above and in the absence of any evidence to support the earnings claims at issue in this inquiry, DSSRC recommended Globe Life discontinue or significantly modify the claims.

 

Conclusion

In the absence of any evidence to support the earnings claims at issue in this inquiry, DSSRC recommended Globe Life discontinue or significantly modify the earnings claims.

 

Company Statement

Globe Life failed to provide DSSRC with a Company Statement indicating that it would either adhere to the recommendations made in this report or appeal the matter to the DSSRC Appellate Board. Accordingly, DSSRC referred this matter to the government pursuant to section (VI)(E) of the DSSRC Policies & Procedures.

 

(Case #203, Closed on 2/20/25)
Copyright 2025 BBB National Programs

 

 

[1] Globe Life Family Heritage Division is a subsidiary of Globe Life, Inc.

[2] Globe Life stated that this type of commission-based independent contractor model is ubiquitous in the insurance industry, including Fortune 1,000 companies like Aflac, American Family and Primerica. If an agent decides Globe Life does not pay competitive commissions or is otherwise not a good fit, the agent is in full control of their license and can move on to sell policies for a different insurer. Accordingly, Globe Life is incentivized to (and does) sell compelling products to consumers and pays commissions to its agents that are highly competitive within the insurance industry.

[3] Agents who aspire to own their own agency can choose to contract with Globe Life to do so and earn additional commissions from insurance sales made by agents affiliated with the agency they develop. Agents are not required to become agency owners.

[4] See DSSRC, Policies and Procedures for the Direct Selling Self-Regulatory Council, Section III (2022) at DSSRC Policies & Procedures.

[5] In 2016, Globe Life nationally disseminated its own press release recognizing the “honor to be named to the Direct Selling News list of top direct selling companies.” See https://home.globelifeinsurance.com/press-releases/2016/may-2016/family-heritage-life-insurance-ranks-no-61-on-seve.

[6] Primerica Inc., DSSRC Case #31-2021 at https://bbbprograms.org/programs/all-programs/dssrc/ccd/case-31-2021--ngo-inquiry--primerica-inc.

[7] Fed. Trade Comm’n, FTC Policy Statement Regarding Advertising Substantiation (Nov. 23, 1984). https://www.ftc.gov/legal-library/browse/ftc-policy-statement-regarding-advertising-substantiation.

[8] Id.

[9] See Fed. Trade Comm’n, Business Guidance Concerning Multi-Level Marketing, Deceptive Earnings and Product Claims (April 2024). https://www.ftc.gov/business-guidance/resources/business-guidance-concerning-multi-level-marketing#deceptive. While the FTC Business Guidance primarily focuses on MLM companies, many of the principles it outlines can also apply to all direct selling companies, particularly those that use a network-based sales structure. The FTC Business Guidance offers key insights into what practices are acceptable and what are considered deceptive or unfair in the context of multi-level marketing, and these practices can often be relevant to direct selling in general.

[10] Similarly, with respect to the social media posts at issue, section 255.2 (b) of the FTC Guides Concerning the Use of Endorsements and Testimonials in Advertising states that “[a]n advertisement containing an endorsement relating the experience of one or more consumers on a central or key attribute of the product or service also will likely be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve with the advertised product or service in actual, albeit variable, conditions of use. Therefore, an advertiser should possess and rely upon adequate substantiation for this representation. If the advertiser does not have substantiation that the endorser’s experience is representative of what consumers will generally achieve, the advertisement should clearly and conspicuously disclose the generally expected performance in the depicted circumstances, and the advertiser must possess and rely on adequate substantiation for that representation.” FTC Guides Concerning the Use of Endorsements and Testimonials in Advertising Rule, 16 C.F.R. § 255.2(b).

[11] Supra at 8. Section 17 of the FTC Business Guidance states: “… before making express or implied claims that people “working hard” or “trying hard” are likely to make a certain amount of money, … or other similar claims, answer some questions: What does “working hard” or “trying hard” mean? Have you explained up front to prospective participants what they need to do to “work hard” or “try hard? Do you have a reasonable basis for your claim that unsuccessful participants are unsuccessful because they do not work or try as hard as those who are successful, or that working more hours generally leads to a higher level of income? Do you have evidence that shows that a typical participant who is “working hard,” or who works a certain number of hours, earns a certain amount of money? If the answer to any of these questions is “I don’t know” or “no” or “I only have anecdotal evidence,” you probably do not have a reasonable basis or substantiation to make a claim that participants in your MLM who try hard make money, that MLM participants who lost money did not work hard enough, or similar claims.”

[12] FTC v. AdvoCare International, L.P., 2019 U.S. Dist. LEXIS 212024 (W.D. Tex. Dec. 13, 2019).

[13] FTC v. Vemma Nutrition Co., Inc., et al., No. CV-15-01578-PHX-DGC, 2015 U.S. Dist. LEXIS 121405 (D. Ariz. Aug. 21, 2015).

[14] DSSRC, Guidance on Earnings Claims for the Direct Selling Industry (2022) at DSSRC Guidance on Earnings Claims for the Direct Selling Industry.