World Federation Code(s) of Conduct

The World Federation of Direct Selling Associations (“WFDSA”) also has spoken to the earnings representation question in its code of conduct directed towards direct sellers. In general direction the WFDSA Code Sections B.b and B.c state:

B.b Recruiting

Companies and Direct Sellers shall not use misleading, deceptive or unfair recruiting practices.

B.c Business Information

Information provided by the company to its Direct Sellers and to prospective Direct Sellers concerning the opportunity and related rights and obligations shall be accurate and complete. Companies shall not make any factual representation to a prospective recruit which cannot be verified or make any promise which cannot be fulfilled. Companies shall not present the advantages of the selling opportunity to any prospective recruit in a false or deceptive manner.

More specifically, the WFDSA sets outs standards for earnings representations in Section B.d.:

B.d Earnings Claims

Companies and Direct Sellers shall not misrepresent the actual or potential sales or earnings of their Direct Sellers. Any earnings or sales representations made shall be based upon documented facts.