Case #90-2022: Monitoring Inquiry – Zilis LLC
BBB NATIONAL PROGRAMS
The Direct Selling Self-Regulatory Council
Case Number 90-2022: Monitoring Inquiry – Zilis LLC
Company Description
Zilis LLC (“Zilis,” or the “Company”) is a multi-level direct selling company headquartered in Argyle, Texas. The Company sells wellness products to consumers including hemp products and products for weight management, skincare, joint and muscle support, and overall wellness.
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.
Product Performance Claims
This inquiry involved three health-related product claims disseminated by Zilis salesforce members on social media. DSSRC informed the Company of its concerns that such claims communicate the message that the Company’s products are effective at treating serious health-related conditions, including, but not limited to, anxiety, fibromyalgia, arthritis, diabetes, chronic pain, stress, and depression.
The representative product claims that formed the basis of this inquiry include:
- “Lost weight; Reduce Cravings; Boost your immune system…helps with situational stress”
- “fibromyalgia; menstrual; arthritis; diabetes; chronic pain; nausea; depression; anxiety; autism; epilepsy; OCD; Alzheimer’s”
- “Every day I see at least one post in my news feed about someone dealing with anxiety. Zilis CBD has helped me so much in my daily life with stress and bad, dreary moods”
Company’s Position
The Company informed DSSRC of its efforts to promptly remove the social media posts stating, “Lose weight; Reduce Cravings; Boost your Immune system…helps with situational stress,” and the steps it has taken to address the reference to “fibromyalgia; menstrual; arthritis; diabetes; chronic pain; nausea; depression; anxiety; autism; epilepsy; OCD; Alzheimer’s.”
With respect to the remaining testimonial claim that “Every day I see at least one post in my news feed about someone dealing with anxiety. Zilis CBD has helped me so much in my daily life with stress and bad, dreary moods,” the Company initially informed DSSRC that its salesforce member removed the references to stress and depression [“dreary moods”] but that the Company believes that general anxiety is a non-disease state or condition versus anxiety disorders, which are considered disease states. Notwithstanding the regulatory characterization of the claim, DSSRC informed the Company that it believes that the testimonial representation that the Company’s products can effectively provide relief from anxiety and stress should be supported by competent and reliable scientific evidence demonstrating that the product performs as claimed.
Analysis and Recommendation
DSSRC appreciated the good faith efforts of Zilis to address the concerns in this inquiry. DSSRC determined that the initial actions taken by the Company to remove the two social media posts making health-related product claims were necessary and appropriate.
Here, DSSRC also concluded that the testimonial representation that the Company’s products can effectively provide relief from anxiety and stress should be supported by competent and reliable scientific evidence demonstrating that the product performs as claimed. As DSSRC has noted in previous inquiries1, the FTC’s standard of competent and reliable scientific evidence has been defined in FTC case law as "tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that has 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.2”
In the absence of such evidence, the FTC assumes consumers will expect a “reasonable basis” for the truth of these claims made by the Company’s salesforce members3. Accordingly, in the absence of any such evidence in the record, DSSRC determined that the Company’s successful efforts to effectuate removal of the social media post in question to be necessary and appropriate.
Conclusion
DSSRC appreciated the good faith efforts of Zilis to address the concerns in the inquiry. DSSRC determined that the initial actions taken by the Company to remove the two social media posts making health-related product claims were necessary and appropriate.
In addition, DSSRC concluded the testimonial representation that the Company’s products can effectively provide relief from anxiety and stress should be supported by reliable and competent scientific evidence demonstrating that the product performs as claimed. In the absence of any such evidence in the record, DSSRC determined that the Company’s successful efforts to effectuate removal of the social media posts in question to be necessary and appropriate.
Company Statement
“Zilis is profoundly grateful to the Direct Selling Self-Regulatory Council (“DSSRC”) and the outstanding DSSRC representatives with whom it has worked. Working with the DSSRC has been a tremendously beneficial process for us. We greatly respect the insights, expertise, and guidance of the DSSRC regarding the matters involved in this inquiry and consider its input to be absolutely invaluable.
We have been delighted to work with the DSSRC to correct the social media posts of three Zilis independent contractors (“Ambassadors”) who were making inappropriate claims for certain of our products. Since its inception, Zilis has maintained a world-class compliance department to insure that our Ambassadors are educated and operate their businesses in a legally and regulatorily compliant basis. As it has always done, Zilis will continue to carefully scrutinize the marketing and promotional efforts of all of its Ambassadors to insure compliance with state and federal laws.
(Case #90-2022, closed on 10/03/2022)
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