With income disclosures, the FTC is very clear with their requirements. Whenever an income claim is made, regulators assume that the claim is deceptive unless the proper substantiation is provided. Their rationale is simple: when representing non-average earnings i.e. big money that is only realized by few people, it’s important to provide the prospects with average earnings so they can make informed decisions. It’s not exactly fair because the average earnings are skewed downwards due to the low cost of entry and a complete lack of activity from most participants.
Whenever income is referenced, in whatever format, an IDS needs to be provided to the prospect. There are two key reasons referenced in nearly every complaint filed by regulators against MLMs: the main reason is lack of external sales. The other reason is grossly exaggerated income claims made by field leaders without proper substantiation. When a company creates discipline in its leaders to properly use income disclosure statements, it’s a great hedge against a serious risk factor.
The IDS needs to be provided when income claims are made. Express income claims are claims occur when various scenarios are provided i.e. “put in 50 people in your business, earn X dollars.” Implied income claims are usually the most common and occur when speakers reference lavish lifestyles, nice homes, cars and any form of success that can be achieved by way of the business. Whenever an income claim is made, a disclaimer needs to be provided in the same font or format as the statement that triggered it. As an example, if I say “Buy the home you’ve always wanted” in bold, larger than normal font, the disclaimer technically needs to be made in the exact same format. This is an unusual requirement passed by the FTC to apply pressure on companies to keep their income claims less conspicuous.
While we make every effort to ensure that we accurately represent all the products and services reviewed on this website and their potential for income, it should be noted that earnings and income statements made by M&H and its advertisers / sponsors are estimates only of what we think you can possibly earn. There is no guarantee that you will make these levels of income and you accept the risk that the earnings and income statements differ by individual.
As with any business, your results may vary, and will be based on your individual capacity, business experience, expertise, and level of desire. There are no guarantees concerning the level of success you may experience. The testimonials and examples used are exceptional results, which do not apply to the average purchaser, and are not intended to represent or guarantee that anyone will achieve the same or similar results. Each individual’s success depends on his or her background, dedication, desire and motivation.
There is no assurance that examples of past earnings can be duplicated in the future. We cannot guarantee your future results and or success. There are some unknown risks in business and on the internet that we cannot foresee which could reduce results you experience. We are not responsible for your actions, lack of action or results.
The use of our information, products and services should be based on your own due diligence and you agree that this website and the advertisers and or sponsors of this website are not liable for any success or failure of your business that is directly or indirectly related to the purchase and use of our information, products and services reviewed or advertised on this website.