Case #105-2023: Monitoring Inquiry – Peach Underneath, Inc.

BBB NATIONAL PROGRAMS

The Direct Selling Self-Regulatory Council 

Case Number 105-2023: Monitoring Inquiry – Peach Underneath, Inc.

 

Company Description

Peach Underneath, Inc. (“Peach Underneath” or “the Company”) was a multilevel marketing company headquartered in Waltham, Massachusetts that marketed premium, athletic-inspired clothing and intimate apparel.

 

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.

This inquiry concerns earnings claims by the Company’s salesforce members. The representative claims that formed the basis of this inquiry were located on the Facebook accounts of Company salesforce members. Those claims are set forth below:

Earnings Claims

  • “Financial freedom”
  • “❤️ no risks just rewards”

    “Financial freedom”

  • “… build a fashion business that consistently provides her with a source of valuable 💵 income.”1
  • “Peach has been a gift for me and my life. Not only for the financial freedom it has afforded me but for the amazing group of women that I have met and grown close to” and “If you have ever thought for a second to have your own "side hustle" or a booming business, tune in today at either noon or 8pm to hear more about this unique opportunity to own a fashion business!”
  • “If you are looking for part-time or full-time income, put your passion for fashion to work for you.”2

 

In a Notice of Inquiry letter that was sent to the Company by email and hard copy on February 3, 2023, DSSRC informed Peach Underneath of its concerns that the subject social media posts can be reasonably interpreted as communicating that Company salesforce members can replace their income and achieve financial freedom from participation in the Peach Underneath business opportunity.

The Company did not provide a response to DSSRC’s inquiry.


Administrative Closing

Shortly after the Notice of Inquiry had been mailed to the Company, DSSRC learned that Peach Underneath ceased business operations late in 2022. This was confirmed by a message disseminated on the Company website which states “A bittersweet farewell. We could not be more grateful for this incredible adventure and the amazing community we've built, so it is with a heavy heart that we announce Peach has closed its doors.⁠”3 A similar message was provided on the Company’s Linked-In page.4

As noted in section 6 of the DSSRC Guidance on Earnings Claims in the Direct Selling Industry, while 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 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. In addition, 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,” and “time freedom.”5

While DSSRC remained concerned with the substantive earnings claims communicated in the posts at issue, because the Company is no longer in operation, it was determined that this inquiry is no longer appropriate for investigation in this forum. As such, DSSRC administratively closed the inquiry pursuant to the Policies and Procedures for the Direct Selling Self-Regulatory Council.

 

(Case #105 closed on 3/3/23)
© 2023 BBB National Programs


[1] This identical post was made by three different salesforce members.

[2] This identical post was made by three different salesforce members.

[3] See https://www.discoverpeach.com/ .

[4] https://www.linkedin.com/company/peach-inc-/

[5] https://bbbnp-bbbp-stf-use1-01.s3.amazonaws.com/docs/default-source/dssrc/dssrc_guidanceonearningsclaimsforthedirectsellingindustry.pdf.