Summary of Action investigated Beautycounter, a California-based multilevel marketing company that sells cosmetics and skincare products, and found that it uses unsubstantiated, and therefore deceptive, income claims to market the Beautycounter business opportunity. Such marketing materials include claims of participants achieving financial freedom, earning a replacement income, quitting their jobs, making six figures per year and paying for graduate school, among other things, when the reality is that the vast majority of Beautycounter distributors are making little to no money in the venture. compiled more than 100 examples of unsubstantiated income claims.

As a result of the company’s failure to timely remove the claims from publication, filed a complaint with the Direct-Selling Self Regulatory Council (DSSRC) on July 22, 2020 urging it to take action. On October 28, 2020, the DSSRC issued a report that, among other things, indicates that Beautycounter had “immediately and adequately addressed each and every claim brought to its attention.” The DSSRC report also indicates that Beautycounter will be updating its 2019 Income Disclosure Statement to provide more transparency about what a potential consultant can generally expect to achieve.

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