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Making Opportunity Claims

Nov 5, 2020


For the past few months, we have been focusing on the reasons why we cannot make certain claims about the Jeunesse Products and Opportunity, especially during the current global pandemic.  Following our last month’s topic about Product Claims (https://www.jeunesseglobal.com/en-AU/blog/product_claims), we will be taking a closer look at Opportunity Claims more in detail this month.  We will be covering a lot of information, so please bear with us!

Opportunity Claims

While Jeunesse continues to attract intelligent entrepreneurial people such as yourself in record numbers, it is imperative that everyone promotes the business in a responsible way.  In order to follow our long-term vision to continue building one of the legacy companies in the direct selling industry, we want to make sure you and your team are equipped with the correct knowledge when discussing income, lifestyle, and business potential.

The Compliance Department has always encouraged distributors to avoid using promotional content that could be potentially misleading to consumers and prospects, but we also understand that determining whether a statement is misleading can be confusing on its own!  As a general rule, before making a statement about the Jeunesse Opportunity, you should first correctly answer these two questions:

1.       Do you have a reasonable basis for the claim at the time the claim is made?


We know…You’re probably thinking: “What does a reasonable basis even mean?”  It simply means whether the typical distributor could expect the same level of success and achievements as portrayed in the claim.

 
2.       Do you have documentation that can substantiate the claim at the time the claim is made?
 

Again… What does this mean? This refers to whether the claim takes into account the cost of doing business as an independent contractor including time, energy, taxes, and necessary expenses.  Does the opportunity claim align with the Income Disclosure Statement of what the typical distributor can expect to earn?

Now, let’s take a look at a few examples that are deemed non-compliant when promoting the Jeunesse Opportunity:


1.       “I made $2000 in passive income last month with Jeunesse just by sitting on my couch!”

Explanation: Jeunesse distributors are prohibited from listing specific and/or range of dollar figures when discussing earning potentials.  The governing regulatory agencies would classify this statement as misleading, because it does not take into consideration the out-of-pocket expenses when conducting business.  What do you expend monthly to qualify for earnings in the compensation plan?  These are expenditures associated with marketing, travel, promotional materials, etc.  More importantly, statements which claim that potential earnings are passive or residual imply that people can earn money by doing nothing.  Now, we all know the hard work that goes into building your direct sales business.  So, make it a priority to set realistic expectations regarding income potential when engaging your prospects!
 

2.       “My Jeunesse business has allowed me to quit my full-time job.  Let me show you how!”

Explanation:  This claim would not be deemed reasonable, because a typical distributor does not quit his or her job upon joining a direct selling company.  Similarly, you should refrain from using phrases such as “be set for life”, “replacement income”, and “financial freedom”.  Instead, try promoting the Jeunesse Opportunity as a channel to earn supplemental income.

 
3.       “If you recruit at least 5 people a month, you can earn over $1 million a year like our top income earners…”

Explanation:  One of the issues with this statement is the focus on recruitment over product sales.  The second issue is the hypothetical claim.  A way to understand hypothetical claims is by looking at the “A Penny a Day” analogy.  This analogy states that if you start by saving a penny on day 1 and double your savings daily, you would have $5,368,709.12 by day 30.  Well, it all sounds very simple, but nearly impossible to execute.  With that in mind, the claim above is similar in theory, as it does not reflect what a typical distributor can expect to earn.  These types of claims are misleading, because they suggest above-average earnings and do not help a prospect to have a realistic view of the business potential. 


4.       “…I just built my 10,000 sq. ft. dream home by the lake with the income I earned from my Jeunesse business…”

Explanation:  While years of hard work may have allowed you to build your dream home, this statement is considered a lifestyle income claim, as it implies that the connection with direct sales is the sole reason you were able to purchase the home.  Other factors like time, spousal income, and additional revenue streams may have contributed to this purchase.  Likewise, posting pictures of luxury cars, yachts, vacations, and mansions on social media to demonstrate a lavish lifestyle on the same platform you promote your Jeunesse business are strictly prohibited.  The regulatory agencies view these claims as misleading, because they create an unreasonable expectation as to what a typical distributor can achieve.  


5.       “…here’s a screenshot of how much I have earned in commissions in just one month! If I can do it, so can you!”

Explanation: The posting of any commission cheques, bank or earning statements is not allowed, as it is not an all-inclusive representation of your business, because it does not reflect your investment of time or expenses.


We want our distributors to succeed and share their stories of hard work and perseverance.  However, we also want everyone to set realistic expectations for new distributors.  As always, before making any statements about the Jeunesse Opportunity, we encourage you to first take a look at our official literature such as the main website, our official Facebook page, or the Income Disclosure Statement.  If your proposed statements do not align with the resources listed, please do not post it.  It is also a good idea to refer to the Policies and Procedures available for your market or contact Compliance for clarification. 

We know this was a lot to take in!  Should your team need more in-depth training about Product and Opportunity claims or simply to reinforce existing knowledge, we will be more than happy to arrange a webinar dedicated to these topics.

Remember, Compliance is here to help you.  We can guide you to your personal success in the most professional and legal way possible.  We love to see you succeed, because our success depends on your success.  

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