Case #135-2023: Administrative Closure – Global Domains International
BBB NATIONAL PROGRAMS
Direct Selling Self-Regulatory Council
Case #135-2023: Administrative Closure - Global Domains International, Inc.
Global Domains International, Inc. (“GDI” or the “Company”) is a direct-selling company based in California. The company was established in 2005 and sells domain names via an affiliate network.
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 process, which monitors advertising and marketing claims disseminated by direct selling companies and their salesforce members.
This inquiry concerned twelve earnings claims disseminated on social media by Company salesforce members. DSSRC was concerned that the posts communicated non-representative claims regarding the income the typical salesforce member could earn from the Company’s business opportunity. The representative claims that formed the basis of this inquiry are set forth below:
- “Earn up to $30,000+ Per Month!”
- “we’re also offering the chance for people all over the world to earn a significant extra income from home”
- “all active customers receive one dollar per moth ongoing residual income or three thousand nine hundred and five dollars per month and it gets even better without program there’s no limit to the number of people you can have on your first later”
- “What if we can show you how to turn ten dollars into thirty thousand dollars every month while working from home with little effort?”
- “Whether you’re seeking to supplement your income or launch a full-time career, GDI training can help you achieve your goals.”
- “A recession proof business-You can click on the link below to get started on your journey to financial freedom”
- “On top of all that, you can earn an unlimited income with GDI”
- “Unlimited Income Potential with the Global Domains International”
- “Discover How to Start Earning $3,905 a Month From Home”
- “Make a Weekly & Monthly Income With Global Domains International… Join My Team Earn A Monthly Income”
- “Passive Residual Income… $2000+ Month… Residual Income For Life”
- “GDI $30,000+ Per Month- FREE to Start Today!!! This Automated $10 Home Business Pays Up To $30,000+ Per Month! We want to show you how to Quit Your Job and Break Free From The 9 to 5 Grind and turn 10 dollars into 30 thousand dollars every month working for home… It is an unlimited income potential.”
More specifically, DSSRC was concerned that such social media posts and claims may be interpreted as meaning that the Company’s opportunity will result in a substantial or significant income for the typical salesforce member.
GDI promptly acknowledged receipt of DSSRC’s Notice of Inquiry and informed DSSRC that it immediately began working to remedy the claims at issue by contacting salesforce members to remove the posts or contact the platforms on which the claims were disseminated to request that they be taken down. The Company did not attempt to substantiate the claims identified by DSSRC.
The Company informed DSSRC that it contacted each of the salesforce members responsible for the claims at issue to request removal of their posts. All posts were successfully removed or modified to address DSSRC’s concerns except for two. One post is on a website that has not responded to GDI’s attempts to contact for removal. As to the other, the Company contacted Facebook to request that the post be removed.
DSSRC appreciated the Company’s good faith efforts to address its concerns and determined that the Company’s efforts to remove the claims identified in this inquiry were necessary and appropriate.
As noted in DSSRC’s Guidance on Earnings Claims for the Direct Selling Industry, DSSRC will evaluate any claim based upon the context in which the claim appears and the potential net impression of such claim to the audience. Some words and phrases, however, are prohibited when made to a general audience of prospective or current salesforce members. Such words and phrases include “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.1
Here, DSSRC determined that the prompt actions taken by the Company to facilitate removal of the earnings claims at issue in this inquiry were necessary and appropriate.
Based upon the good faith actions taken to address the concerns raised by DSSRC in this inquiry, DSSRC administratively closed the matter.
DSSRC recognized and appreciated the good faith actions taken by the Company to address DSSRC’s concerns. Accordingly, DSSRC administratively closed the inquiry.
Notwithstanding the foregoing, DSSRC will continue to monitor the earnings claims being made regarding the Company’s business opportunity and may commence a compliance inquiry should DSSRC continue to see improper earnings claims being disseminated by the Company and/or its salesforce members.
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 Id. at Section 2