Case #81-2022: Administrative Closure – QuiAri, LLC

BBB NATIONAL PROGRAMS

The Direct Selling Self-Regulatory Council 

Case Number 81-2022: Monitoring Inquiry – QuiAri, LLC

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Company Description

QuiAri, LLC (“QuiAri” or the “Company”) is a multi-level direct-selling company in Brandon, Florida, that markets health and wellness products.

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 advertising and marketing claims in the direct selling industry.

Product Claims

  • “if you or anyone you know is interested in losing weight or gaining weight wants to boost their immune system or simply wants to have that extra boost of energy then QuiAri is the best way to do that.”(depiction of extraordinary weight loss with no disclosure of generally expected results)
  • “A healthy inflammatory response; Anti-aging; Ocular (Eye) health; Cardiovascular System Health; Balanced Blood Sugar levels”
  • “Maqui berry has been deemed a superfruit due to its high content of potent antioxidants. It demonstrates many potential benefits, including improved inflammation, ‘bad’ LDL cholesterol levels and blood sugar control” and “MaquiBerrySuperfruits have a better chance to recover fast and survived, when got infected with the pandemic virus that are spreading globally.”
  • “Be VIRUS PROOF today with 1 cup of QUIARI SHAKE and QUIARI ENERGY today! 💪
  • “No anxiety. No depression”
  • “QuiAri the best product for lose weight. Help for high cholesterol. Balance sugar diabetes. Make skin look young and beautiful.”
  • “Here are the top 15 health benefits of Maqui Berry: Helps with Diabetes;  Helps to Boost Metabolism;  Helps with Anti Inflammatory Effects; 6. Helps with Cardiovascular Problems; 7. Helps with Antibacterial Properties; 8. Helps with Anti Carcinogen Effects; 9. Helps with Antiviral Properties; Helps Kidney Related Problems; Helps to Extend Life Span.”

    DSSRC expressed its concern to the Company that the above product performance claims communicated to consumers that QuiAri products were effective at treating a number of serious health-related conditions, including COVID-19.

 

Earnings Claims

QuiAri’s salesforce members also disseminated several earnings claims suggesting that participants in the Company’s business opportunity typically earn significant income and receive free vacations. More specifically, the claims stated that potential salesforce members could earn “travel the world, earn $100,000,” and achieve their dreams of earning a better income.

The earnings claims are set forth below:

  • “…building a business to provide financial freedom for you and your family to travel the world.”
  • [0:02] “If you could have all of the money that you ever want and all of the free time to enjoy it, how would your life be different? Would you buy your dream house? A brand new car? Take more vacations? Pay off credit card bills? (accompanied by lavish lifestyle depictions) ;
  • “QUIARI - COMPENSATION PLAN - $100,000 PER YEAR BLUEPRINT” and ‘Show you the blueprint how you can make a full time income from QuiAri”
  • [02 :49] “Would you like to cover your monthly car payment? An amazing vacation? Or your kid’s school? With the Lifestyle Bonus you have the ability to do all of this and more.”
  • “What is it that you REALLY want? More time? More freedom? A better income...or more income? Whatever your dreams are, QuiAri can help.”

    DSSRC expressed its concern that the earnings and incentive claims communicated by QuiAri would be interpreted by consumers as meaning that Company salesforce members typically earn significant income and receive free vacations by virtue of participating in the QuiAri business opportunity.

 

Company’s Position

QuiAri did not dispute DSSRC’s concerns that the social media posts brought to its attention were not appropriate and stated that the representations were in violation of the Company’s policies and not aligned with the Federal Trade Commission’s (FTC) guidance regarding the dissemination of product and income claims.

QuiAri took immediate action to address DSSRC’s concerns with respect to the specific claims at issue. More specifically, the Company was able to contact the salesforce members responsible for 10 of the 12 posts identified by DSSRC and have them removed.

With respect to the two remaining posts, the Company advised DSSRC that it was unable to identify the individuals responsible for the posts. However, the Company informed DSSRC that it contacted Facebook in both August and September and reported a copyright infringement complaint to the platform noting that the individuals who made the social posts had reproduced, distributed, performed, publicly displayed images, and misrepresented the efficacy of the Company’s products without the permission of the QuiAri.

The Company also noted to DSSRC that it is continuing to implement more stringent protocols for monitoring the activity of salesforce members and their social media pages and that QuiAri is reminding all salesforce members, via ongoing training, to review and abide by the “QuiAri Medical and Drug Claims” document as well as its “Income Claims” document, which are readily available in the Company’s Promoter Portal.

Analysis and Recommendation

DSSRC appreciated the good faith efforts of QuiAri to address the concerns at issue in the inquiry. DSSRC determined that the actions taken by the Company were necessary and appropriate. The Company promptly undertook efforts to contact all of the salesforce members to remove or modify the posts that were identified by DSSRC and also followed up with Facebook to enforce its intellectual property rights regarding copyrighted materials.

Product Claims

As DSSRC has noted in previous inquiries,[1] 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 members.[3]

QuiAri chose not to substantiate the health-related product performance claims, but, instead, attempted to facilitate the discontinuance of the posts. Although it was unable to contact all of the individuals responsible for the product performance claims at issue, the Company was able to effectuate the removal of four of the seven posts which included representations regarding the efficacy of QuiAri products to treat health-related conditions.

With respect to the remaining two posts communicating product performance claims, DSSRC acknowledged QuiAri’s prompt actions to attempt to remove the social media posts, despite being unsuccessful in effectuating their removal. The Company’s repeated efforts to determine the identity of the individuals responsible for those posts along with its due diligence to report to contact Facebook and raise copyright infringement violations regarding the unauthorized display and characterization of the Company’s products demonstrated a good faith effort to address DSSRC’s concerns.

Earnings Claims

Section 6 of DSSRC’s Guidance on Earnings Claims notes that some words and phrases presented in the context of earnings claims are prohibited when made to a general audience of prospective salesforce members. These include “unlimited income,” “full-time income,” “replacement income,” etc.[4] Sub-section (A) of Section 6 of the DSSRC guidance states that such words and phrases carry a particularly high risk of being misleading to consumers when communicated in a general context.[5]

With respect to claims pertaining to incentives and rewards including travel and bonuses, section 2(A) of DSSRC’s Guidance on Earnings Claims states that representations related to income earned from direct selling that suggest that the ability to make lifestyle purchases – such as homes, vehicles, vacations, etc. – are earnings claims and will be deemed inappropriate in the absence of a reasonable basis for its claim at the time the claim is made; and clear and conspicuous disclosure of key context related to the award or earnings to ensure that the net impression is truthful and not misleading.

DSSRC expressed its appreciation to QuiAri for its expeditious removal of the earnings posts that were identified in this inquiry.

Based upon the good faith efforts taken by the Company, DSSRC administratively closed the inquiry.

Conclusion

DSSRC recognized QuiAri’s bona fide efforts to have 10 of the 12 social media posts removed and for its due diligence in contacting Facebook and alerting the platform that the Company’s intellectual property rights had been infringed upon regarding those social media posts that remain publicly accessible.

Based upon QuiAri’s good faith efforts, DSSRC administratively closed its inquiry and informed the Company that it would continue to monitor other posts being disseminated by QuiAri’s salesforce members to ensure the Company’s continued compliance with DSSRC guidance regarding product and income claims.

 

(Case No. 81-2022, closed on October 3, 2022)
© 2022 BBB National Programs.

 

 

[1] See DSSRC Case #63-2022 – Innov8tive Nutrition; DSSRC Case #68-2022 – Daxen, Inc.; DSSRC Case #69-2022 – Max International, LLC; DSSRC Case #74-2022 – Opulence Global

[2] See, e.g. Vital Basics, Inc., C-4107 (Consent April 26, 2004); see also In Re Schering Corp., 118 F.T.C. 1030, 1123 (1994).

[3] Id.

[4] DSSRC Guidance on Earnings Claims §2

[5] Id. at §2(A).