No Mary Kay Income Claims
The Mary Kay legal department has issued a letter to all National Sales Directors about earnings claims. It seems they may be trying to head off trouble from the FTC, since it is widely known that Mary Kay consultants, directors, and NSDs repeatedly make false earnings claims. We even have tons of them documented here!
In the letter, MK tells everyone that the FTC is cracking down and sent letters to MLMs that made products and earnings claims. MK reiterates that no earnings claims whatsoever are supposed to be made, and:
“The FTC can consider a statement an improper earnings claim without mention of a specific dollar amount; the guarantee of “making money” or “financial freedom” appears to be enough. In addition, posts implying that starting a Mary Kay business could lead to a life of luxury present a very large risk to the Company and to the person publishing the post. Remember, top distributors of other direct selling companies have been sued personally for the earnings/lifestyle representations they have posted on social media.”
Everyone is supposed to remove from the internet any posts making earnings claims. (Fortunately, we have some good ones available here!)
And what about taking advantage of people by exploiting the COVID-19 pandemic and the financial devastation so many are feeling?
“The FTC has cautioned that it will be ultra-vigilant about anything that could be perceived as a direct selling company taking advantage of the COVID-19 fallout, particularly when it comes to team building. The FTC seeks to avoid actions by companies that could be perceived as trying to capitalize on a person’s recent job loss or their desperation to replace lost income.”
Well, congratulations, Mary Kay. You and your sales force have done that quite thoroughly already.
Also, Mary Kay consultants are reminded that any posts offering the opportunity (i.e. trying to recruit, offering the e-start special, etc) are not to be made on anyone’s personal social media That includes their personal Facebook account or their Instagram account. They are only allowed to make such advertisements in CLOSED customer groups or on business pages. But you know MK never enforces this one.
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So where can we report these? Does Mary Kay legal have an email addy?
Oh Lazy, they don’t actually WANT anyone to report them. They just want to SAY they want reports, so if the FTC pursues them, they look like they did something.
I love it when I see someone saying they’re making an executive income but haven’t even pulled Cadillac production in Applause. A unit doing $17,000 wholesale/$34,000 retail has a Director with a net profit of less than $3910 and about $2932 after taxes are paid. If she had not a penny in expenses for the whole year, which you and I both know is impossible (Director suits, newsletters, airfare to Leadership, training center rent, etc), her income would only be $35,190/year.
I love that I’ve been shunned and lied about since I left, and I love I’m making more money than they are and not spending my days searching for a new idea to change things.
I’m curious whether Mary Kay sent this letter to all the SDs, DIQs, Team Leaders and Red Jackets, or just sent it to the NSDs.
The NSDs don’t do much recruiting. They’re more interested in playing the part of figureheads and hauling in the Big Bucks. The financial misrepresentations are primarily done at the SD level.
If MK Corporate was really interested in complying with the tighter rules they’d send this letter to everyone who is involved in recruiting. They’d hold special training classes, look at SD websites and Facebook pages, and search for YouTube videos put up by consultants.
OTOH, if MK Corporate is just interested in saving face and creating plausible deniability, they’ll restrict distribution of the letter to the NSDs and let everyone below NSDs hide under a rock.
Why report it to Mary Kay? Here’s the link that should be used to report them:
https://www.ftccomplaintassistant.gov/#crnt
legal@marykay.com
Mary Kay legal department……. now there’s a good laugh!!!!!!
I’m with you BestDecision. The lies told about me are amazing not to mention the letter my SR Director sent to all the other directors in our area “forbidding “ them from speaking to me again!!! I have a job with FREE travel benefits, medical, dental and 401K!
This shows what’s going on with other moms.
https://www.ftc.gov/news-events/press-releases/2020/04/ftc-sends-warning-letters-multi-level-marketers-regarding-health
That’s a great link because the article has a phone number and online link for folks to report violations.
The FTC link is awesome because you click on the individual company and you get the letter, where they give examples of what consultants have said regarding income claims and cures for coronavirus.
So the $30.00 e start isn’t taking advantage of this present situation. From Day one with their “Ask me about Mary Kay car” or promoting a free car is questionable. The car really isn’t free. Also some Directors are stuck with co pays. What were all those Seminar brag fests? A pink car in the lobby. Jewelry, Win trips, Discussing $3000.00 shoes an NSD supposedly purchased. Bragging about Pay Checks from years ago. Discussing all the tax right offs. Wearing those gaudy supposed expensive fancy dresses on stage. The sashes, tiaras, Rings etc. Mentioning their alleged mansion like homes. For decades they have tested the limits of human decency. “Finally implying that starting a Mary Kay business could lead to a life of luxury present a very large risk to the Company and to the person publishing the post. (Wow….finally after the CEO’s and heirs have taken full advantage of what an mlm set up provided financially. “Remember, top distributors of other direct selling companies have been sued personally for the earnings/lifestyle representations they have posted on social media.”The FTC has cautioned that it will be ultra-vigilant about anything that could be perceived as a direct selling company taking advantage of the COVID-19 fallout, particularly when it comes to team building. The FTC seeks to avoid actions by companies that could be perceived as trying to capitalize on a person’s recent job loss or their desperation to replace lost income.” Wow once again, now that this company is starting to fall apart they are blaming others for ignoring this pyramid schemes horrible flaws. NSD’s are about to be left behind once this company decides to finally end the exaggeration of earnings. MK Direct Selling taking advantage bahaha. OMG the past fifty years have been nothing but a a Huge numbers game. (Forgetting that all those yellowing unsellable products represent hundreds of broken and in debt women and families). What took the FTC and MK Legal so long. I mean this should have happened decades ago??? 🙁
About darn time! This is getting so out of hand in many ways. All still have binders on, NSD directors wouldn’t know an honest sales pitch…ever. They are toast,corporate warehouses still stacked with product and now no enticement to get it into the hands of the new recruits. Imagine the cooling costs to keep the warehouses of ‘the sacred items’ in the summer!!!
Yes they still will entice, but those cars are sitting around while directors are a zoomin’, texting and ‘a-callin’. Becoming more expensive, even while we see new car lease commercials for a fraction of 900.00 copay when you don’t meet production. Even prorated copays of less than 900.00 (based on your production).
Thanks for the FTC link, they had better reign it in, even the recycled trash form 30 yrs ago, get that BS off social media. FTC says stop the proliferation!
I will be reporting if I encounter the give me your 1200.00 encounter.
Also, the $30 E kit is SHADY, borderline IMO with FTC. It did suddenly come out after CC was canceled. Goodness MK corporate is on a super thin margin and guess what Mr Rogers your clout is somehow being shoved aside at the FTC… Good Luck.
Oh, my! How sad that Princess Chels won’t be sharing her nauseating posts with piles of blank receipts, designer handbags and ridiculously inflated numbers of how much her team ‘sold’ anymore. Didn’t she very recently (like a week or so ago) post something to Instagram claiming her team had ‘sold’ like $50k or something? Maybe all the various Kbots posts trying to get people to buy MKrap to donate to hospital staff will disappear, too.
Sounds like the head rats are prepping to jump off the sinking ship any day now and are trying to cover themselves and shift blame to their lowly consultomers.
The new Applause is out! Top 400 units include Cadillac maintenance production. ALL others made way <$4,000 commissions and did less than Cadillac production, even if they are in one acing like everything is peachy. Bet their $900 copayment kicking in Oct-Dec is stinging.
Page 15, December issue