FTC Warning on Health Claims linking to Covid-19

INTEROFFICE MEMORANDUM

TO: VALENTUS INDEPENDENT REPRESENTATIVES

FROM: CHRIS HUPKE, VP OPERATIONS

SUBJECT: FTC WARNING ON HEALTH, INCOME, FINANCIAL HARDSHIP CLAIMS LINKING TO CORONAVIRUS, COVID-19

DATE: APRIL 28, 2020

CC: DAVE JORDAN

Along with the new people whom come to Valentus daily, and the Independent Represenatives who have been here for some time, its critical to remind each person of the laws, and regulations which govern our industry. Please see your Valentus Policies and Procedures on how to communciate and market the Valentus Opportunity and Valentus Products.

THE FOLLOWING ARE DIRECTIVES FOR OUR BUSINESS:

IMMEDIATE ACTION MUST BE TAKEN TO CEASE AND DESIST, AND/OR, REMOVE FROM ANY PUBLIC COMMUNICATION, SOCIAL MEDIA POSTING, MARKETING MATERIAL, OR HASHTAG, ANY OF THE FOLLOWING WHICH INCLUDE VALENTUS TRADEMARK NAMES: HEALTH/INCOME CLAIMS, HASHTAGS, REFERENCES TO CURRENT ECONOMIC SHUTDOWN/FINANCIAL HARDSHIPS LINKING WITH CORONAVIRUS/COVID-19.

FTC WARNING:

“FTC SENDS WARNING LETTERS TO MULTI-LEVEL MARKETERS REGARDING HEALTH AND EARNINGS CLAIMS THEY OR THEIR PARTICIPANTS ARE MAKING RELATED TO CORONAVIRUS.

www.ftc.gov/news-events/press-releases/2020/04/ftc-sends-warning-letters-multi-level-marketers-regarding-health

This link is being made available to understand the FTC position on claims or references to Coronavirus, COVID-19. Multiple examples are listed here, as we continue educating the field on this matter. These are intended for educational purposes only, and are not considered an exhaustive list of non-compliance examples, but a small set of examples listed in the FTC Warning. No company listed here, should be used in marketing Valentus or its products.

As you know, at signup, and on each order, Valentus IR’s, are required to accept and agree to the Valentus Policies and Procedures. Again, Valentus Policies and Procedures mandate each IR, adheres to the regulations and laws of their respective countries in which they operate. This is non-negotiable.

REMINDERS:

1. ONLY marketing materials/language disseminated by Valentus Corporate, is authorized for use.
2. Valentus products are not intended to cure, treat, diagnose or prevent any disease. Therefore, it is highly recommended to consult your physician, doctor or healthcare professional about any possible complication or interaction before using any product.
3. There should be no use of Hashtags related to the health situation. For example: #COVID-19, #CORONAVIRUS

EXAMPLES OF INCOME CLAIMS:

1. XYZ is always open for business even during quarantine! I’ve been working from home for over 3 years now and still making money when other people aren’t ! Isn’t it about time you found out what it is I do and how this company really works ? . . . #workfromhome #financialfreedom.
2. We all need something to fall back on when our Plan A crumbles. For many, many people right now, the Plan A is no longer providing. Given that we are all at home trying to manage this new normal  chat and get all your questions answered and start getting that Plan B up and running  bringing in that EXTRA INCOME! . . . #extraincome . . . #financialfreedom.

The text accompanied an image with the text no risk, no experience needed, can be profitable immediately.

3. During an uncertain time like this, one thing I am grateful for is residual income from my home based business. If you’re struggling, and could use an extra few hundred dollars a month, why not give this a try. #residualincome.

The image accompanying the post states, “I have spots available on my team!!! If you want to make an extra $200, $500, or $1,000 a month, message me!

As we have discussed many times, representations of a business opportunity, earnings claims, violate Section 5 of the FTC Act, 15 U.S.C. 41 et seq., if they are false, misleading, or unsubstantiated and material to consumers. Express and implied earnings claims must be truthful and non-misleading to avoid being deceptive, which means that claims about the potential to achieve a wealthy lifestyle, career-level income, or significant income are false or misleading if business opportunity participants generally do not achieve such results. Even truthful testimonials from participants who do earn significant income or more will likely be misleading unless the advertising also makes clear the amount earned or lost by most participants. Your business opportunity participants and representatives must immediately cease making all express and implied earnings claims that would be false or misleading to current or prospective participants.