Summary of Action

TINA.org investigated Primerica, Inc., a Georgia-based multilevel marketing company that sells term life insurance and various other financial service products, and uses unsubstantiated and exaggerated income claims to market its business opportunity.

For years, Primerica and its distributors have been marketing the Primerica business opportunity as providing financial freedom and allowing distributors to quit their jobs, make six figures per year, and go on luxury vacations, among other things. TINA.org initially notified Primerica of this deceptive marketing issue in December 2017 (as part of TINA.org’s 2017 investigation into all DSA-member companies) when it sent a letter to the company’s CEO Glenn Williams informing him of TINA.org’s findings that Primerica was making false and unsubstantiated income claims to promote its business opportunity (at the time, TINA.org had collected a sampling of more than 20 such deceptive income claims), but the deceptive claims continued.

In May 2020, TINA.org collected more than 140 additional examples of unsubstantiated income claims marketing the Primerica business opportunity, many of which were published directly on the company’s website. And though some of the company’s marketing materials include disclaimers – typically at the very end of a lengthy video, in small, white scrolling font – they are legally insufficient as none of them clearly or conspicuously disclose what typical participants earn, as is required by FTC law.

As a result of these findings, TINA.org filed a complaint with the Direct-Selling Self Regulatory Council (DSSRC) on June 5, 2020 urging it to take action. On January 20, 2021, the DSSRC issued a final case report finding that Primerica and its distributors were making inappropriate income claims to promote the company’s business opportunity. The DSSRC determined that the company had removed many of the claims identified by TINA.org from publication and that it should include a disclosure of the income that can be generally expected by the typical distributor if the depicted distributor references financial success that is attributable to the company’s business opportunity. The DSSRC did not address the inadequacy of Primerica’s current income disclosure.

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