Earnings Claim Statement Guidelines
If you make a claim expressly or by implication about how much money a person can earn from your business opportunity, you have to put the claim in writing. It is illegal to make an earnings claim unless you have written materials on hand that back up what you’re saying. You have to make those materials available to a prospective buyer or to the FTC if they ask for them.
If you make an earnings claim, you have to give the prospective buyer a separate document that clearly says across the top “EARNINGS CLAIM STATEMENT REQUIRED BY LAW.” That document must include the following information:
- The name of the person making the claim and the date;
- The specifics of the claim;
- The start and end date those earnings were achieved;
- The number and percentage of your buyers who got at least that result;
- Any information about the buyers who got those results that might vary from prospective buyers – for example, where they’re located; and
- A statement that prospective buyers can get written proof for your earnings claims if they ask for it.
Additional Requirements
Earnings Claims In Advertisements: If you make an earnings claim online, on TV, radio or other media, you must have written proof on hand that supports your representations, and you have to disclose certain information when you’re making the claim – for example, the start and end dates the earnings were achieved and the number and percentage of your buyers who got at least that result.
General Statements or Statistical References: If you make general statements about earnings or talk about the performance statistics in the industry, you’ll need to have written proof on hand showing that the results for the opportunity you’re selling are at least as good. Read the Rule for the specifics.
Changes in Potential Earnings: If the information you previously provided to a prospective buyer in the Earnings Claim Statement substantively changes, you have an obligation to let the prospective buyer know what those changes are, in writing, before the prospective buyer signs a contract or pays you any money. And like the Disclosure Document, if you promote your business opportunity in a language other than English, your Earnings Claim Statement has to be in that language, too.
