Case #181-2024: Administrative Closure – Elomir, Inc.

BBB NATIONAL PROGRAMS

Direct Selling Self-Regulatory Council
Case #181-2024: Administrative Closure – Elomir, Inc.


Company Description

Elomir, Inc. (“Elomir” or the “Company”) is a Texas-based multi-level marketing company that sells nutritional supplements including its flagship product, Axis Klärity. The Company’s website describes Axis Klärity as an oral mouth strip made with the Company’s proprietary blend of N-acetylcysteine (“NAC”) conjugate, Thiamine Conjugate, and Curcumin Conjugate paired with diffusion technology and Cyclodextrin for optimal delivery.

 

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. 

DSSRC identified several key product performance claims made by the Elomir salesforce members that appeared to convey unsubstantiated health benefits, including claims pertaining to the product’s ability to bring mental clarity and focus to users as well as to treat, cure, or alleviate the symptoms of several other medical conditions, including, for example, anxiety, inflammation, and post-traumatic stress disorder (PTSD).

In addition, DSSRC identified certain earnings claims made by Company salesforce members that potentially conveyed unsubstantiated claims overstating the amount of income that can be generally expected by salesforce members participating in the Company’s business opportunity.

A selection of representative claims identified were set forth in DSSRC’s Notice of Inquiry to the Company. Specifically, in its Notice of Inquiry, DSSRC identified the following claims to the Company as representative of the types of claims that are being disseminated its salesforce members in connection with the marketing of Axis Klärity.

 

Product Performance Claims

  1. Within 10 minutes, I started to feel a lightness, relaxing feeling. Not a tired feeling, just comfortable and clear. Colors were more vibrant for me and I noticed things I never did before as we drive around today. I felt happy and content. Dave felt the same lightness and clarity. I deal with a lot of anxiety due to my job and I was able to just say no and relax today and not focus on that! The tension is gone I was feeling and I cannot wait till tomorrow to take another one! Still feel relaxed and happy overall! And to know this helps my gut is incredible!” (Facebook 2022)
  2. “Both men have noticed their glucose levels to be more stabilized, which is INCREDIBLE!!! … BTW, load up your car’s emergency kit with Axis Klärity (just rotate them out every 2 years). . . It could be life saving when you need them the most.” (Facebook 2022)
  3. “If you are like me and suffer with an anxiety disorder or PTSD, I highly recommend our Axis Klarity. I have been diagnosed with a severe anxiety adjustment disorder and PTSD.” (Facebook 2023)
  4. “NAC is a key ingredient in this wellness marvel, contributing to its anti-aging, brain health, stable blood glucose, better respiratory support, and fertility enhancement benefits, supported by the latest study from www.healthline.com. NAC is a true wellness powerhouse!” (Facebook 2023)
  5. “This is why I take a supplement from Elomir called Axis Klarity. I know longer need to take my daily prescription anxiety medicine.” (Facebook 2023)
  6. “As of this morning I am back to the weight I was at when I lost 50 lbs.  I'm eating what I want when I want which is not near as much as it used to be, feeling great, no swelling or joint discomfort anymore.” (Facebook 2023)
  7. “Day 90 day weight loss CHECK IN! Take this once a day!! Pounds and inches MELT AWAY‼️” ( Tiktok 2023)
  8. “I have zero anxiety which is RARE for me. I feel balanced. I have noticed some other things too like my neck muscles are not as tight and since my surgery in 2020 they have been like rocks. Not 100% loose but about 60% and I haven’t felt those release or relax at all in years.” (Facebook 2022)
  9. “For a new quality in life, for those who it’s hard to get up out the bed sometimes with pain, or tiredness, craps, inflammation, gut issues, depression, fog brain, more clarity in the brain!” (Facebook 2022)
  10. “𝗕𝗘𝗡𝗘𝗙𝗜𝗧𝗦 𝗢𝗙 𝗡𝗔𝗖 -> helps in reducing oxidative stress and lowering your risk of developing chronic conditions such as disease, diabetes, and infertility.
    • Other benefits include:
    • Detoxification of the liver & kidneys AND prevention of potential side effects of drugs and environmental factors — such as exposure to heavy metals and even acetaminophen. NAC is used in emergency rooms for overdoses.
    • Improved Symptoms of Respiratory Issues - even helps those with COPD & bronchitis
    • Decreases insulin resistance, including those of us with PCOS (polycystic ovarian syndrome).
    • Promotes healthy function by replenishing glutathione levels and aiding in regulating glutamate. This may benefit people with conditions such as Alzheimer’s & Parkinson’s diseases.
    • Promotes mental health & stress management, including improving psychiatric disorders and addictive behaviors, including improvement in symptoms of depression & bipolar disorder, as well as helping decrease symptoms of withdrawal and lowering the risk of relapse in people with addictions.
    • Reduction of Disease Risk - studies suggest that combining NAC & green tea may help reduce damage caused by oxidized LDL-cholesterol. PLUS, NAC helps boost nitric oxide production, which can improve flow & lower your attack risk.
    • An 𝑢𝑛𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑 benefit has also been increased fat metabolism, burning and weight loss. Indirectly, NAC helps improve workouts, and, more directly, studies have demonstrated a 5% reduction in body fat in 8 weeks 𝑤𝑖𝑡ℎ𝑜𝑢𝑡 any change in dietary habits.” (Facebook 2023)
  11. “As I've talked about before, I have anxiety, depression, migraines, sleep issues, under active thyroid...... Recently a friend, Terry, introduced me to Axis Klarity, a thin yellow strip that you put under your tongue (it dissolves). It took awhile for me to feel a change, many people feel it within hours or days of the first strip. But, I can say I am sleeping better, my anxiety and depression are lower, no migraines, and I have been experiencing more energy. And there are so many other benefits to using this daily.” (Facebook 2023)
  12. “I'm going to make a bet, that out of my family and friends, less than 4 will take the time to put this on their wall to help raise awareness of Mental Health (PTSD, depression, anxiety, and other mental health diagnoses) difficulties. I probably have most of those illnesses. At least to a some degree. But I found the strips to help me through all of them!” (Facebook 2022)
  13. “No need for digestion, it delivers nutrients on a cellular level unlike anything out there on the market. It has three main ingredients: cur-cumin, Thiamine, and NAC. These may support Balanced mood, better focus, Sense of well-being, And sustainable clean energy. It also may help with stress, anxiousness, and aches.” (Facebook 2022)

 

Earnings Claims

  1. “If we’ve learned anything over the years it’s to have multiple streams 💸
    1. & I can definitely say… those $300 instant payouts just hit different. ✨
    2. 𝗗𝗶𝗱 𝘆𝗼𝘂 𝗸𝗻𝗼𝘄...
    3. 𝖮𝗇𝗅𝗒 $274 a day is $100,0𝟢0 a year...
    4. 𝖨 have a way to make $300+ daily! 😳
    5. 100% commissions
    6. Paid out INSTANTLY! 💸
    7. NOT A MLM 
    8. No monthly fees 🙌
    9. FREE vacay at your choice destination 🌴
    10. Unlimited daily & INSTANT pay
    11. No EOM craziness ❌
    12. Your biz, your way, when YOU want.” (Facebook 2022)
  2. “If you are looking to make extra money, have a side gig, want to make an extra $500-$1,000 a month, or replace your current full time income we need to chat!” (Facebook 2022)
  3. “The opportunity Elomir provides is helping people all over the world discover financial freedom by helping people earn enough money to help with the costs of todays higher prices.”
    1. “… it ranges from $18 a month all the way to and four thousand dollars a month based on that rank.”
    2. Bonus chart showing potential bonuses at $104,000. (YouTube 2022)

 

 

Company’s Position

In response to the inquiry, Elomir provided DSSRC with a detailed spreadsheet documenting the actions it had taken to address DSSRC’s concerns.

 

Product Performance Claims

Elomir did not attempt to provide DSSRC with evidentiary support for the product performance claims at issue. Instead, the Company took immediate actions to have the posts removed from social media. As a result of its efforts, Elomir was able to facilitate the removal of eight of 13 product performance claims brought to its attention by DSSRC.

With respect to the following four social media posts, the Company indicated that they were disseminated by inactive salesforce members and provided information to DSSRC demonstrating that it attempted to contact those individuals to have the posts removed.

  • “This is why I take a supplement from Elomir called Axis Klarity. I know longer need to take my daily prescription anxiety medicine.” 
  • “I have zero anxiety which is RARE for me. I feel balanced. I have noticed some other things too like my neck muscles are not as tight and since my surgery in 2020 they have been like rocks. Not 100% loose but about 60% and I haven’t felt those release or relax at all in years.”
  • “For a new quality in life, for those who it’s hard to get up out the bed sometimes with pain, or tiredness, craps, inflammation, gut issues, depression, fog brain, more clarity in the brain!”
  • “Because this means a lot to me🖤 personally. I'm going to make a bet, that out of my family and friends, less than 4 will take the time to put this on their wall to help raise awareness of Mental Health (PTSD, depression, anxiety, and other mental health diagnoses) difficulties. I probably have most of those illnesses. At least to a some degree. But I found the strips to help me through all of them!”

 

Elomir also provided DSSRC with copies of the correspondence sent to Facebook to alert the platform of the unauthorized posts and posted a comment in the applicable section of each of the posts stating “This post has been flagged as an unauthorized medical claim. Elomir Compliance requests that you remove the post.”

Regarding the following post, Elomir advised DSSRC that it was able to contact the salesforce member responsible for its dissemination who agreed to remove the post.

  • “𝗕𝗘𝗡𝗘𝗙𝗜𝗧𝗦 𝗢𝗙 𝗡𝗔𝗖 -> helps in reducing oxidative stress and lowering your risk of developing chronic conditions such as 🫀 disease, diabetes, and infertility.
    Other benefits include….”.

 

However, the Company was informed by the salesforce member that she was unable to remove the post on her own and that she has been in contact with Facebook to facilitate its removal. In addition, DSSRC was provided with a copy of the correspondence from Elomir to Facebook informing the platform of the unauthorized claims and DSSRC confirmed that the salesforce member posted a remark in the comment section of the post stating “I am unable to edit or delete this post” and that she “reported this multiple times.”

 

Earnings Claims

Similarly, Elomir did not attempt to support the earnings claims at issue and used its best efforts to have the posts taken down, resulting in one of the three earnings claims at issue being disabled.

Elomir explained that the following post was disseminated by an inactive salesforce member whose account has long since terminated. Unfortunately, the settings on the post do not permit comments. The Company provided proof to DSSRC that it reported the matter to Facebook.

  • “If we’ve learned anything over the years it’s to have multiple streams  💸 && I can definitely say… those $300 instant payouts just hit different. ✨ 𝗗𝗶𝗱 𝘆𝗼𝘂 𝗸𝗻𝗼𝘄...𝖮𝗇𝗅𝗒 $274 a day is $100,0𝟢0 a year...𝖨 have a way to make $300+ daily! 😳 100% commissions. Paid out INSTANTLY! 💸 NOT A MLM  No monthly fees 🙌 FREE vacay at your choice destination 🌴 Unlimited daily & INSTANT pay

    No EOM craziness ❌ Your biz, your way, when YOU want.”

 

The Company explained that the following YouTube post was disseminated by an independent third party who has no affiliation with Elomir.

  • “The opportunity Elomir provides is helping people all over the world discover financial freedom by helping people earn enough money to help with the costs of todays higher prices” and “… it ranges from $18 a month all the way to and four thousand dollars a month based on that rank.”

 

Despite its efforts, the Company was unable to contact the individual responsible for posting the compensation plan review that was the subject of the inquiry. Notwithstanding, Elomir reported the  unauthorized post to the platform and included a remark in the comment section of the post stating “This video has been flagged as an unauthorized income claim. Elomir compliance requests that this video be removed.”

The Company provided DSSRC with copies of all of the aforementioned correspondence.

 

 

Analysis

Elomir did not dispute DSSRC’s concerns that the social media posts in question were not aligned with the Federal Trade Commission’s (FTC) guidance regarding the dissemination of product and income claims.

Elomir was successful in removing nine of the 16 posts at issue in this inquiry. In the absence of evidence to support the product and earnings claims disseminated by its salesforce members, DSSRC determined the Company’s efforts to remove the claims in this inquiry to be necessary and appropriate.

 

Product Performance Claims

Under FTC law, advertisers must have a reasonable basis for their product claims before disseminating an ad. What constitutes a reasonable basis depends greatly on what claims are made, how they are presented in the context of the entire ad, and how they are qualified. The FTC’s substantiation standard is a rigorous one, particularly when claims relate to health.1 When applied to claims about the efficacy or safety of health-related products, the FTC requires competent and scientific evidence.  The FTC has more specifically defined that standard as “tests, analyses, research, or studies that (1) have been conducted and evaluated in an objective manner by experts in the relevant disease, condition, or function to which the representation relates; and (2) are generally accepted in the profession to yield accurate and reliable results.” In addition, the FTC requires that the research must be “sufficient in quality and quantity based on standards generally accepted in the relevant scientific fields, when considered in light of the entire body of relevant and reliable scientific evidence, to substantiate that the representation is true.”2

DSSRC acknowledged the bona fide, good faith efforts of Elomir to have the product performance claims removed from social media and the documentation that it provided to DSSRC demonstrating the actions that were taken to contact both the individuals responsible for the posts as well as the platforms where the posts appeared to advise them of the unauthorized claims.

 

Earnings Claims

DSSRC determined that Elomir took the appropriate action in attempting to have the earnings claims at issue in the inquiry removed from social media.

Section 6 (A) of the DSSRC Earnings Claim Guidance states that 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 “financial freedom.”3

Section 13 of the FTC’s Business Guidance Concerning Multi-Level Marketing (“the FTC Guidance”) states that “An MLM’s or its participant’s representations related to the business opportunity, including earnings claims, violate Section 5 of the FTC Act if they are material to consumers and false, misleading, or unsubstantiated. This is true wherever the representations are made, including on social media, in live presentations, in one-on-one conversations, or in any other medium… ” and  that “...[a]n MLM or participant making claims about MLM income must have a reasonable basis for the claims disseminated to current or prospective participants about the business opportunity at the time it makes the claims.

The FTC Guidance further states that truthful testimonials from MLM participants who earn large amounts of money or career-level income likely will be interpreted as representing that their experience is representative of what others should expect to receive. Given the reality of MLM participant experiences, such a testimonial is atypical and not representative of what most MLM participants will achieve. Presenting atypical earnings to consumers considering an income opportunity is likely to generate a deceptive impression. The FTC Guidance further notes that it is deceptive and unlawful to make such claims if participants generally do not achieve such results or if the direct selling company lacks objective data to know whether participants generally achieve these results.

DSSRC concluded that the social media posts identified in this inquiry could reasonably be interpreted as meaning that salesforce members typical Elomir salesforce member receives significant earnings from participating in the Company’s business opportunity when, in fact, this has not been demonstrated.

 As such DSSRC agreed that the Company took the appropriate action in attempting to remove the three posts which communicated unsupported earning removed.

Although Elomir was successful in removing only one of the three earnings claims at issue, DSSRC determined that the Company demonstrated that it made a genuine, good faith effort to disable the posts.

 

Conclusion

Elomir was successful in removing nine of the 16 posts at issue in the inquiry and demonstrated that it made a bona fide, good faith attempt to remove those social media posts that remain publicly available.

Based upon the Company’s actions, DSSRC administratively closed its inquiry.

 

Company Statement

“Elomir, Inc. (the “Company”) appreciates the DSSRC’s cooperation in this process and will follow the DSSRC’s recommendations. We are grateful the DSSRC recognizes the Company’s ongoing good faith efforts to ensure the Company and its independent sales force maintain compliance with the Company’s Policies & Procedures and regulatory standards. We understand maintaining compliant content is an ongoing process for direct sales companies and will continue to monitor our field for any non-compliant material. We appreciate the DSSRC’s work and continue to welcome its guidance for self-regulation in the direct selling industry.”

 

(Case #181, Closed on 11/8/24)
© 2024 BBB National Programs

 

 

[1] See FTC Health Products Compliance Guidance at page 11 (https://www.ftc.gov/system/files/ftc_gov/pdf/Health-Products-Compliance-Guidance.pdf).

[2] Id at 12.

[3] Id. at §2(A).