Case #178-2024: Formal Administrative Closure – doTERRA, Inc.

BBB NATIONAL PROGRAMS

Direct Selling Self-Regulatory Council
Case #178-2024: Formal Administrative Closure – doTERRA, Inc.

Company Description

doTERRA, Inc. (“doTERRA” or the "Company") is a direct selling company that sells essential oils and other related products. The Company was founded in 2008, and is headquartered in Pleasant Grove, UT.

Basis of Inquiry

The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This matter was commenced by DSSRC pursuant to DSSRC’s ongoing independent monitoring of advertising and marketing claims in the direct selling industry.

This inquiry concerned a total of 14 claims throughout various social media platforms and the Company’s websites. Specifically, DSSRC identified eight earning claims on social media posts as well as the Company’s U.S. website. The inquiry further included three claims of financial freedom/security found on social media posts and the Company’s Canadian website. DSSRC was concerned that such posts conveyed unsupported claims regarding the significant income a typical salesforce member could earn from the Company’s business opportunity, including claims that the typical salesforce member could earn full-time income and/or obtain financial freedom through the Company’s business opportunity.

DSSRC also identified three social media posts containing product claims that DSSRC was concerned may be interpreted as meaning that that the Company’s products are efficacious in treating a number of serious health conditions.

The representative claims identified by DSSRC in this inquiry were as follows:

Earnings Claims:

“Whether you're seeking a side hustle or a full-time career, doTERRA offers endless possibilities. Let's team up, support each other, and create a life we love! 💼💚Message me to learn more and take the first step towards a brighter future!”
“I can show you how to invest a small amount of money and earn $1500 every month! If you are looking for a sure investment, cash to pay off debt, college tuition, pay of your mortgage faster, go on a much needed vacation, message me ASAP! So u can invite you to join me this Sunday at 5pm pacific on zoom to learn more!!! Who needs an extra $1500? Share this with a friend🙌 #earn1500.”
“I make my own hours, I work from anywhere, I get to travel, I have met the most amazing people and had the most amazing opportunities (Prague!!!)! I create an amazing income”
“Replace and Multiply Your Income”
“Let me help you get started with an additional stream of income - whether you use it for bacon and other groceries or a trip. It can even become your family’s main source of income. Not only is it good money, the reward of genuinely helping people recover their health is just incredible!”
“Now I’ve been able to replace my income and we’ve still got a couple of months before baby comes.”
“Unlimited Income Potential: - Earnings: Unlike a fixed salary in a regular job, network marketing can offer unlimited income potential. Earnings are often based on the effort and success of the individual.”
“Residual Income” – Video of woman shuffling through twenty-dollar bills.

Claims of Financial Freedom/Security:

“Financial Freedom is Attainable”
“With full training and unwavering support, stepping into this community doesn't just offer financial freedom; it offers a chance to live fully in those irreplaceable moments with your children.”
“While doTERRA has been my path to financial security and wellness, your journey might look different…. Remember, it’s not just about making money; it’s about making a life. A life where financial freedom meets personal well-being. Drop me a message or comment below, and let’s explore how you can start building a future where your wealth grows.”

Product Performance Claims:

“It can be used to improve respiratory function, reduce stress levels, induce relaxation and improve skin health…. To improve circulation and lower symptoms of joint pain or muscle pain related to conditions like arthritis, digestive disorders and asthma, try massaging frankincense oil to the painful area or diffusing it in your home.”
“Any time we are stepping into something new, or bigger than ourselves emotions like fear, frustration, anxiety and doubt come up…. It’s important to feel these emotions and move through them ✨. And I love that essential oils can help support emotional release with ease and grace.”
“Essential Support for ADHD & Using Essential Oils to Cope with Anxiety! These our some of our newest products available for purchase and we are so excited to share them with you! #autismawareness” – Accompanied by images of publications regarding Essential Support for AHAD, Autism and Anxiety, respectively.

Company Position

The Company promptly responded to the inquiry and specified the steps it took to address DSSRC’s concerns. DSSRC confirmed that the Company was successful in having 13 of the 14 earnings and product claims at issue removed from its websites and various social media platforms. DSSRC acknowledged and appreciated the Company’s efforts to have such claims removed, including certain claims that were disseminated by salesforce members outside the U.S.¹

Specifically, as to the social media posts stating earnings claims such as “financial freedom,” “full-time career,” “earn $1,500 every month,” “work from anywhere… create an amazing income,” “main source of income,” “replace my income," “unlimited income potential," and “residual income," the Company was successful in having the salesforce members that disseminated them remove such earning claims. With respect to such earnings and financial freedom claims, the Company informed DSSRC that it also provided the respective salesforce members with additional training to ensure future posts are consistent with the Company’s policies.

In addition, the Company was successful in having two of the product claims removed by salesforce members as well as a claim made by a third-party company that “hash tagged” doTERRA at the bottom of the post without the Company’s consent.

In addition to the specific social media posts and claims discussed above, the Company also provided DSSRC with a general update as to its compliance efforts. Specifically, the Company reported that it has instituted procedures to ensure compliance with Company policies. The Company noted that its compliance department consists of 31 full-time employees that are primarily responsible for educating, training, and monitoring its salesforce members, and taking enforcement action when necessary. The Company also noted that it requires its salesforce members to contractually agree to Company policies and applicable federal, state, county, and municipal laws, including laws governing product and earnings claims.² Accordingly, the Company provides product and earning claims education and training resources on its website devoted to helping the salesforce members understand appropriate earning and product claims.

In addition, doTERRA stated that its Compliance team proactively monitors claims made by its salesforce members with the use of an automated search tool from a third-party monitoring service. The Company stated that its compliance team routinely conducts manual searches to locate and correct non-compliant claims. doTERRA further detailed its procedures in the case of the team identifying a non-compliant claim. The Company stated that it first contacts the salesforce member to provide training and to request removal or correction of the non-compliant claim. The Company stated that while such members ordinarily comply, if failure to respond occurs, the compliance team will address the matter with progressive disciplinary measures, including but not limited to warnings, required coaching, fines, suspension, and termination of the salesforce member’s account.

Administrative Closing Determination

DSSRC acknowledged the good faith actions taken by doTERRA to effectuate the discontinuance of 13 of the 14³ earnings and product claims at issue in this inquiry and determined the Company’s actions to be necessary and appropriate. DSSRC appreciated the Company providing DSSRC with a general update as to its compliance efforts and its commitment to maintain and increase compliance efforts in the future.

Based upon the Company’s good faith efforts to address the claims identified in this inquiry, DSSRC administratively closed the inquiry.

Company Statement

dōTERRA is an active supporter of industry self-regulation. The company appreciates the opportunity to respond to DSSRC’s inquiry and provide information about dōTERRA’s comprehensive compliance program.

[1] Three claims were social media posts disseminated outside the United States and the Company was successful in having two removed. The one social media post that remains available online was disseminated outside the United States. The Company’s compliance team had discovered that post and suspended the salesforce member responsible for disseminating it prior to the Company’s receipt of DSSRC’s Notice of Inquiry.

One claim that “Financial Freedom is attainable” was located on the Company’s Canadian website. The company noted that this page on its Canadian website touted a program that encourages employees and salesforce members to pay off debts and promotes goal setting and sound debt repayment strategies, consistent with a philosophy that encourages Company employees and salesforce members to live within their means. Nonetheless, the Company recognized DSRC's concern that the phrase “financial freedom is attainable” could be construed to be connected to salesforce member earnings or a lifestyle claim even if that meaning unintended. Accordingly, the Company had the claim removed.

[2] Section 9 of the Policy manual explains that product and business opportunity claims are regulated by the FTC and FDA.

[3] With respect to the one remaining social media post made outside the United States containing products claims, DSSRC appreciates the efforts made by the Company’s international compliance team to effectuate the removal of such post. DSSRC also appreciates the Company taking disciplinary action by suspending the salesforce member after the individual failed to remove the post at issue. DSSRC recognizes that removing social media posts that were communicated by inactive salesforce members can be a challenging endeavor for direct selling companies. Here, DSSRC recommended that the Company’s international compliance team take additional steps to remove such claim from the marketplace including utilizing any mechanism that social media platforms may have for removal of trademark or copyright violations. DSSRC notes that companies in past DSSRC inquiries have also posted a comment on the applicable social media platform indicating that the subject post is not authorized by the company and that it has requested that the individual responsible for the post have it removed.

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