Case #126-2023: Monitoring Inquiry – Zallevo, LLC

BBB NATIONAL PROGRAMS

Direct Selling Self-Regulatory Council
Case #126-2023: Monitoring Inquiry – Zallevo, LLC

Company Description

Zallevo, LLC (“Zallevo” or the “Company”) is a direct selling company founded in 2020 and based in St. George, Utah. The Company markets health and wellness products focusing on weight loss and anxiety/stress reduction.

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 product performance claims and earnings claims disseminated by Company salesforce members as well as testimonials on the Company’s website. DSSRC was concerned that the product efficacy claims communicated the message that Zallevo products are effective at treating a number of serious health-related conditions. DSSRC was also concerned that the earning claims communicated the message that the typical Zallevo salesforce member can earn significant income through the Company’s business opportunity. The representative claims that formed the basis for DSSRC’s inquiry are set forth below.

Product Performance Claims

• “If you’ve been exhausting all of the options for a stressful medical condition, these products may be just the answer to your prayers.”
• “My 13 year-old was losing 75% of her hair due to a skin condition…doctors had us try laser procedures costing us thousands of dollars with little to no progress…we tried everything…until Zallevo came along. With consistent intake of these 3 products, her skin condition is nearly gone & her hair is growing back strong and healthy”
• “More than half of the dry body weight is protein…it’s all protein… The Human Body & Proteins: Brain cells; Organs; Muscles; Hemoglobin; A thought; A blink of an eye; Creation of hormones; Immune responses; Cardio Function; Neurotransmitter Activity; Healing … Your body has no way of storing protein and with that daily protein intake is imperative…to grow an optimum body, you need to eat the right proteins every day.”
• “My arsenal of formulations that I NEVER travel without. Being out of your routine or away from home does not have to mean set backs, discomfort, sickness or feeling crappy when you have superior formulation that travel with you”

• “Any hard physical labor sent me into chest pains, but that was my life for 35 years…all my muscles had atrophied … In that three hours [after using the Zallevo product] I hadn’t had happen in seven years, I did not have an energy drop…my health just got better and better and better. And now I can go outside and I can work, last weekend I went out and worked for six straight hours.”
• “You get to take advantage of these master formulations that drive incredible results from weight loss to weight maintenance, to lean mass gains, energy, stamina, performance, libido, gut health, cardiovascular health, cognitive health, the list goes on…”
• “The weight started coming off…I maintained and continued losing… I have lost 50lb.”

Earnings Claims 

• “It's amazing to see people just like you and me earning free products EVERY month and earning an extra income for our families…Imagine what an extra $500+ a month could do for you just by sharing this gift in the pockets of your time. ⌚”
• “…everybody could use extra income you set your salary…start making a little extra money…replace your income”

Company’s Position

Zallevo informed DSSRC that the Company is dedicated to supporting its salesforce members in providing a compliant environment to communicate truthful and accurate product and earnings claims transparently to the public. The Company further informed DSSRC that it was in the process of generating a Compensation Disclosure and Earnings Disclaimer and provided DSSRC with drafts of those documents. The Company also provided DSSRC with specific responses to the claims identified by DSSRC in this inquiry.

Product Performance Claims

Zallevo informed DSSRC that it was successful in removing the product performance claim “If you’ve been exhausting all of the options for a stressful medical condition, these products may be just the answer to your prayers.”

With respect to the claims communicating quantified weight loss,¹ the Company argued that claims of weight loss can be substantiated when a timetable is not attached to said weight loss claim. The Company further argued that the weight loss testimonial claims did not imply that the Company’s products were the only thing supporting weight loss, and that the video demonstrated that the Company’s products were the catalyst for healthy lifestyle changes that supported weight loss. Notwithstanding the Company’s position, it informed DSSRC that it was currently drafting a disclosure to qualify the weight loss claims at issue.

As support for the statement that “More than half of the dry body weight is protein...it’s all protein,” the Company provided references from a textbook entitled “Human Nutrition” from the University of Hawaii.² The book covers basic concepts in human nutrition, key information about essential nutrients, a basic nutritional assessment, and information about nutrition across a human’s lifespan. In addition, the Company provided published articles from the National Library of Medicine³ and the Harvard University School of Public Health.⁴ According to Zallevo, these publications have noted that every cell in the human body contains protein, and that protein makes up about half of our dry body weight. The Company explained that the protein we eat is broken down and helps to maintain muscle mass and metabolism and that a severely lacking protein intake can affect almost every part of the body's function, lead to muscle wasting, and a poor immune system.

The Company did not agree that statements made in the consumer story (“Any hard physical labor sent me into chest pains, but that was my life for 35 years...all my muscles had atrophied… at three hours [after using Zallevo] I did not have an energy drop...my health just got better and better and better…”) communicated any substantive health-related benefit. Nonetheless, the Company agreed to work with its AV team to implement appropriate edits to the video and to include appropriate disclosures where necessary.

Zallevo asserted that the social media post communicating that its products “drive incredible results from weight loss to weight maintenance, to lean mass gains, energy, stamina, performance, libido, gut health, cardiovascular health, cognitive health, the list goes on…,” was misinterpreted by DSSRC and that the post simply conveys that the product formulations will drive results, but not that the formulations are the only factor. The Company also stated that it believed these claims to be substantiated and backed by scientific evidence as evident on the Company’s website; that many of the Company’s products have scientifically-backed, peer-reviewed studies; and that the Company has taken extensive efforts to ensure that the Company has compliant structure function claims. Notwithstanding, the Company informed DSSRC that the video, which included the claim, has been decommissioned by Zallevo as a corporate entity.

The Company explained that the YouTube channel (entitled “Empowered by Zallevo”) on which the video appeared is not owned or controlled by Zallevo and it is the Company’s belief that the video was created by a former salesforce member. Zallevo indicated to DSSRC that it is actively working to contact the channel owner to address the issue of their having copies of decommissioned videos.

With respect to the consumer testimonial weight loss claims made on the Zallevo website and in social media posts, the Company maintained that claims of weight loss can be substantiated when a timetable is not attached to said weight loss claim. Zallevo also stated that in the context in which the claims are presented, the reasonable consumer takeaway is that Zallevo products are not the only thing that support weight loss, but instead are the catalyst for healthy lifestyle changes resulting in the stated weight loss.

With respect to the claim “My arsenal of formulations that I NEVER travel without. Being out of your routine or away from home does not have to mean set backs, discomfort, sickness or feeling crappy when you have superior formulation that travel with you,” the Company argued that such a claim should be interpreted in context with the accompanying language in the post (i.e., “TRAVEL got you off track? Dehydration / Limited-crappy food options / Alcohol consumption...”). Accordingly, the Company contended that the claim that would reasonably be interpreted by consumers is that the Zallevo formulations can help you stay on track with your health rather than doing other less healthy things, and when interpreted in context, a reasonable consumer will not believe that the formulation will treat or cure a health-related condition.

Earnings Claims

The Company did not attempt to substantiate the earnings claims in the two social media posts that were identified in the inquiry. Rather, the Company indicated to DSSRC that it would take the necessary action to remove the two posts in their entirety.

Specifically, Zallevo informed DSSRC that the post with the quantified earnings representation (i.e., “Imagine what an extra $500+ a month could do for you…”) had been removed.

With respect to the “replace your income” post, the Company indicated that it was still in the process of contacting the salesforce member responsible for disseminating the claim. The Company informed DSSRC that it had a good relationship with the salesforce member that disseminated the claim and that it expected “full cooperation” in modifying the post into compliance.

ANALYSIS

Product Performance Claims

Like all advertisers, direct selling companies are responsible for the accuracy of claims reasonably implied in advertising.⁵ DSSRC appreciated the steps taken by Zallevo to remove the social media video with the claim stating “If you’ve been exhausting all of the options for a stressful medical condition, these products may be just the answer to your prayers” and its willingness to address the other product performance claims identified by DSSRC. DSSRC determined that the Company’s actions were necessary and appropriate.

With respect to the quantified weight loss claims at issue, DSSRC did not agree with Zallevo that an advertiser is not required to support claims of weight loss when a timetable is not attached to said weight loss claim and determined that the Company must provide substantiation for express and implied weight loss claims despite the fact that no express timeline has been provided for the weight loss claim.

According to the Federal Trade Commission’s (“FTC”) January 2014 publication entitled “Gut Check: A Reference Guide for Media on Spotting False Weight Loss Claims,”⁶ one of the weight loss claims that advertisers are cautioned about is a claim that conveys that using a product “causes substantial weight loss.” That document further explained that “substantial weight loss” means “a lot of weight” and “… includes weight loss of a pound a week for more than four weeks or a total weight loss of more than 15 pounds in any time period…”.  It is further noted in that publication that “…advertisers can convey that ‘substantial weight loss’ message without using specific numbers. Substantial weight loss can be suggested by reference to dress size, inches, or body fat.”

Here, DSSRC determined that in the absence of evidence showing that the amount of weight loss claimed in the social media posts are results that would be generally expected by users of the products, the weight claims have not been supported in the context in which they appeared in the subject social media posts and should be discontinued. Further, DSSRC appreciated the Company’s commitment to crafting an appropriate disclosure for the qualified weight loss claims. DSSRC noted that if the Company intends to qualify the quantified weight loss claims and similar such claims with a disclosure, such disclosure should clearly and conspicuously disclose the amount of weight loss that would generally be expected by users of the product. Further, the Company must possess and rely on adequate substantiation for that representation.

Upon review of the claim “More than half of the dry body weight is protein…it’s all protein,” the Company provided DSSRC with the appropriate source of the statement, corroborated by several other entities including the International Protein Board⁷ and the National Library of Medicine,⁸ and DSSRC agreed with the Company’s position that the claim is not directly tied to the product.

With respect to the consumer story that “Any hard physical labor sent me into chest pains, but that was my life for 35 years…all my muscles had atrophied” and “(three hours after drinking Zallevo product) In that three hours I hadn’t had happen in seven years, I did not have an energy drop…my health just got better and better and better. And now I can go outside and I can work, last weekend I went out and worked for six straight hours,” DSSRC did not agree with Zallevo’s position that this post does not make a health-related product claim. Specifically, the product user discusses a struggle with chest pains and low energy throughout the video and states that after taking the Company’s product he was getting healthier and healthier. He attested to seeing a dramatic change in three hours after taking the product. However, there has been no evidence provided to DSSRC to demonstrate that Zallevo’s products are effective at relieving chest pains, increasing energy, or strengthening muscle.

DSSRC also notes that because the video includes language regarding the time period in which the product user experienced the results (i.e., three hours), the Company’s burden is not only to provide competent and reliable evidence to support the health-related product claims, but also to demonstrate that the product will work in the time period specified in the video. As such, DSSRC determined the Company’s commitment to implement appropriate edits to the video and to include appropriate disclosures to be necessary and appropriate.

Regarding Zallevo’s social media post communicating that its products “drive incredible results from weight loss to weight maintenance, to lean mass gains, energy, stamina, performance, libido, gut health, cardiovascular health, cognitive health, the list goes on…,” the Company stated that the specific performance claims were supported by clinical testing, however it did not provide the studies to DSSRC. Instead, the Company directed DSSRC to the Company website where the supporting data could be found, but DSSRC was unable to locate the studies on the Zallevo website.⁹

The FTC requires that advertisers substantiate express and implied claims, however conveyed, that make objective assertions about the item or service advertised. Objective claims for products or services represent explicitly or by implication that the advertiser has a reasonable basis supporting these claims.¹⁰ Moreover, claims about the health benefits or safety of foods, dietary supplements, drugs, and other health-related products require substantiation in the form of competent and reliable scientific evidence.

Here, in the absence of any competent and reliable scientific evidence to support the health-related claims communicated in the social media post (i.e., weight loss, weight maintenance, lean mass gains, energy, stamina, performance, libido, gut health, cardiovascular health, cognitive health), DSSRC recommended that such claims be discontinued. Accordingly, DSSRC determined the Company’s efforts towards actively working to remove the decommissioned video from circulation to be necessary and appropriate.

It was the Company’s position that the claim stating “You get to take advantage of these master formulations that drive incredible results from weight loss to weight maintenance, to lean mass gains, energy, stamina, performance, libido, gut health, cardiovascular health, cognitive health, the list goes on…” communicated that the Zallevo formulations are but one of several factors that are responsible for the performance results specified. DSSRC did not agree. It is a fundamental principle of advertising law that an advertiser is responsible for any reasonable interpretation of the claims that it communicates in an advertisement.¹¹ DSSRC determined that a reasonable consumer can interpret the video as meaning that the performance results stated in the video (i.e., weight loss, lean mass gains, energy, stamina, performance, libido, gut health, cardiovascular health, cognitive health) are all directly attributable to using the product. However, there has been no evidence provided to DSSRC to support such a takeaway. Accordingly, DSSRC recommended that the Company either modify the video to remove the claim or facilitate the removal of the video in its entirety.

As to the social media post “My arsenal of formulations that I NEVER travel without. Being out of your routine or away from home does not have to mean set-backs, discomfort, sickness or feeling crappy when you have superior formulation that travel with you,” DSSRC agreed with the Company that the post did not communicate any substantive claim. Specifically, Zallevo directed DSSRC to language in the social media post which provided appropriate context to the claim stating, “Being out of your routine or away from home does not have to mean set-backs, discomfort, sickness or feeling crappy ….” The post begins by posing the question “Travel got you off track” and then references the reasons why such setbacks occur (e.g., “Limited-crappy food options;” “alcohol consumption,” etc.). DSSRC concluded that a reasonable consumer would not interpret the post as communicating that Zallevo products would be effective at treating any specific health-related condition.  

Earnings Claims

DSSRC appreciated the good faith efforts taken by Zallevo to facilitate the removal of the two earnings claims posts at issue in this inquiry and noted the Company’s actions were necessary and appropriate. As noted above, the Company was successful in having the quantified earnings claim removed from circulation. DSSRC determined the removal of such claim to be necessary and appropriate.

DSSRC observed that the “replace your income” claim remains in circulation, notwithstanding the Company's efforts to have that claim removed.

As stated in the FTC’s 2018 Business Guidance Concerning Multi-Level Marketing,¹² a direct selling company’s representations and messaging concerning the business opportunity it offers must be truthful and non-misleading to avoid being deceptive under Section 5 of the FTC Act. A direct selling company’s representations about its business opportunity, including earnings claims, violate Section 5 of the FTC Act if they are false, misleading, or unsubstantiated and material to consumers. A company must have a reasonable basis for the claims it makes or disseminates to current or prospective participants about its business opportunity. A “reasonable basis” means objective evidence that supports the claim. If a company lacks such objective supporting evidence, the claims are likely deceptive.

The FTC’s 2018 Business Guidance Concerning Multi-Level Marketing also states that business opportunities may also claim that participants, while not necessarily becoming wealthy, can achieve career-level income. They may represent through words or images that participants can earn thousands of dollars a month, quit their jobs, “fire their bosses,” or become stay-at-home parents. If participants generally do not achieve such results, these representations likely would be false or misleading to current or prospective participants.¹³ Similarly, according to the DSSRC Guidance on Earnings Claims for the Direct Selling Industry, “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.”¹⁴

Accordingly, DSSRC recommended that the Company continue its efforts to have the “replace your income” claim removed including taking disciplinary action, and if necessary, ultimately terminating the salesforce member who disseminated the post.

As DSSRC has noted in previous self-regulatory inquiries, when a direct selling company is made aware of improper claims that were made by an individual who was an active salesforce member when such claim was made but has since become an inactive salesforce member of the company, DSSRC acknowledges that the direct selling company may not be able to require such salesforce members to remove a social media post. In that instance, DSSRC nonetheless recommends that the direct selling company make a bona fide good faith effort to have the improper claim removed.

Here, as demonstration of such good faith efforts, DSSRC recommends that the Company provide DSSRC with correspondence that has been sent to the salesforce members that disseminated the “replace your income” claim requesting that the social media post be removed.

Further, DSSRC recommends that the Company take additional steps to remove the claim from the marketplace including utilizing any mechanism that social media platforms may have for removal of trademark or copyright violations. If the subject claim by a former salesforce member occurs on a website or platform without a reporting mechanism, DSSRC recommends that the Company should contact the website or platform in writing and request removal of the subject claim or post. DSSRC also notes that companies in past DSSRC inquiries have also posted a comment on the applicable social media post indicating that the post is not authorized by the company and that it has requested the individual responsible for the post have it removed.

During the inquiry, the Company discussed with DSSRC crafting disclosure language for Company salesforce members to use whenever making claims about the Company’s business opportunity. According to section 2.2(B) of the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising, “An advertisement containing an endorsement relating the experience of one or more consumers on a central or key attribute of the product or service also will likely be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve with the advertised product or service in actual, albeit variable, conditions of use. Therefore, an advertiser should possess and rely upon adequate substantiation for this representation. If the advertiser does not have substantiation that the endorser’s experience is representative of what consumers will generally achieve, the advertisement should clearly and conspicuously disclose the generally expected performance in the depicted circumstances, and the advertiser must possess and rely on adequate substantiation for that representation.”¹⁵ Accordingly, DSSRC recommends that any such earnings disclosure should provide consumers with a clear indication of the income that could be generally expected from the business opportunity.

CONCLUSION

Zallevo removed the quantified earnings claim at issue in the inquiry as well as the product performance claim stating “If you’ve been exhausting all of the options for a stressful medical condition, these products may be just the answer to your prayers.”  DSSRC determined that the Company’s actions were necessary and appropriate.

With respect to the remaining product performance claims at issue, DSSRC determined that in the absence of evidence showing that the amount of weight loss claimed in the social media posts and on the Zallevo website are results that would be generally expected by users of the products, the weight claims have not been supported and should be discontinued.

Similarly, DSSRC concluded that the video with the claim “the master formulations that drive incredible results from weight loss to weight maintenance, to lean mass gains, energy, stamina, performance, libido, gut health, cardiovascular health, cognitive health, the list goes on…” and the YouTube video referencing the relief of atrophied muscles and chest pains in three hours should be supported by competent and reliable scientific evidence, and in the absence of such evidence, the videos should be discontinued.

Lastly, DSSRC determined that Zallevo provided adequate support for the statement “More than half of the dry body weight is protein…it’s all protein” and agreed that a reasonable consumer would not interpret the post pertaining to travel discomfort as communicating that Zallevo products would be effective at treating any specific health-related condition.

With respect to the “replace your income” claim that remains online, DSSRC recommended that the Company continue its efforts to have the claim removed including taking disciplinary action, and if necessary, ultimately terminating the salesforce member who disseminated the post. DSSRC also recommend that the Company make a bona fide good faith effort to have the improper claim removed as described above.  

COMPANY STATEMENT

At Zallevo, we take great pride in being a leader in the direct selling industry, offering high-quality products and empowering individuals to reach their highest potential. We are also committed to fostering a transparent and ethical business environment.

We recognize the importance of adhering to industry standards and upholding the principles of integrity and responsibility. In line with this commitment, Zallevo wholeheartedly agrees to the recommendations put forth by the Direct Selling Self-Regulatory Council (DSSRC).

We understand that the DSSRC's guidelines are designed to ensure fair business practices, protect consumers, and promote trust within the Direct-Selling community. Embracing these recommendations is a crucial step in demonstrating our dedication to compliance and accountability.

Zallevo is eager to embrace these industry standards, continuing to evolve and improve our operations in pursuit of excellence. We believe that by prioritizing compliance and ethical behavior, we can strengthen the trust and confidence that our Customers and Brand Partners place in us.

Our company pledges to lead with transparency, integrity, and a relentless commitment to our Customers' and Brand Partners' success. Together with the DSSRC's guidance, we look forward to building a sustainable future for Zallevo and the Direct Selling Industry as a whole.

(Case 126-2023, closed on 7/10/23) 
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