MOBE strives to be compliant with all governmental regulations, as well as provide a clear and accurate picture of its products and the results its customers may achieve. We also require all Consultants to comply with all government regulations and have guidelines for Consultants to follow.
This policy governs all instances where income or outcomes, like lifestyle, vehicles or luxury items are used in marketing. We openly share this information and require all Consultants to do so as well.
A copy of the income disclosure statement must be provided to a prospective Consultant whenever the Compensation Plan is discussed or a physical copy is delivered, or when any statement regarding income, earnings, or lifestyle is made.
The terms “Earnings Claim,” “Income Statement,” or “Earnings Statement” include:
- Any statement of average earnings;
- Any statement of abnormal earnings (high or low);
- Any statement regarding earning potential or ranges (this includes current customer testimonials with statements regarding their incomes or commissions);
- Lifestyle statements & claims (including implied via pictures, backgrounds, settings, boats, cars, exotic settings, mansions, etc.)
Since much of our advertising is conducted on the Internet via videos, team hangouts and in print, there are different types of disclosures that must be made according to the advertising medium.
The FTC states that these disclosures be “clear and conspicuous” and that “the disclosure be placed as close as possible to the triggering claim.” Additionally, when designing your advertising, be sure to display the disclosure before the prospect decides to participate or buy. The FTC wants to ensure that consumers are not misled by an ad. MOBE wants to ensure that our customers are fully informed prior to purchasing. This helps both with customer satisfaction and customer retention.
In any meeting that is open to the public in which the MOBE Opportunity, Compensation Plan or any type of income/lifestyle claim is made, you must provide every prospect/attendee with a copy of the MOBE Income Disclosure Statement and speakers must reference the document during their presentation whenever an earnings statement or claim is made. If a video is used during the meeting that shows income earnings, pictures of luxury homes, vehicles, etc., please include a video disclosure, whether verbally stated by the presenter or included in the video.
Here are some sample disclaimers for each instance. If you choose to create your own disclaimers/disclosures when developing sales aids, please be sure to submit for approval to firstname.lastname@example.org and indicate that it is a submission for approval.
Print Disclaimers – these types of disclaimers must always link back to the MOBE Income Disclosure Statement found on our website. Use these in all print media (direct mail, online marketing campaigns, Social Networking, blogs, websites, etc).
- Individual Results Will Vary. Please see our Income Disclosure Statement at: https://mobe.com/income-disclosure/
- These results are NOT typical. Please see our Income Disclosure Statement at: https://mobe.com/income-disclosure/
- These are extraordinary results. Please see our Income Disclosure Statement at: https://mobe.com/income-disclosure/
- These results are unique. Your results will vary. Please see our Income Disclosure Statement at: https://mobe.com/income-disclosure/
Video Disclaimers – these disclaimers must be shown at the beginning and end of a video that discusses any form of income potential. You should also include a print disclosure just below or in close proximity to the video. You should use the verbiage from the Print Disclaimers section and include a hyperlink to the Income Disclosure Statement page.
Audio Disclaimers – these disclaimers are necessary when creating an audio file, conducting business over the phone, in “hangouts,” or team calls where earnings statements are made. When possible also include the print disclosure in close proximity to the means of accessing the call. You should record your own disclaimer and use the verbiage from the Print Disclosures section and then verbally state the location of the Income Disclosure Statement. Any email follow-up to the calls must have the actual Income Disclosure Statement and website link in the body of the email.
Violations & Time to Cure
Depending on the severity of the violation, for first offenses Consultants may be given a single 72-hour “Right to Cure” an income disclosure violation. For severe violations like instances where false information is being marketed or advertisements contain earnings guarantees, MOBE will immediately suspend a Consultant’s account until either the material has been remedied or removed. This Policy applies to Income Claims made in all forms of distributions i.e. verbally, on social media, in emails, blog posts, and websites.
As provided above, disclaimer/disclosure is mandatory for income, earnings, and lifestyle claims (including photos of checks). The disclaimer, which is required to link to the MOBE Income Disclosure Statement must also be “clear and conspicuous” and “in close proximity to the claim made.”
Here is how the policy will work to enforce this very important area of our business:
- First notice: for a minor violation a Consultant will receive a warning from a member of the Compliance Department reminding the Consultant of the necessity of the disclaimer. A “time to cure” will be provided to ensure all future income claims are properly disclaimed, no matter the distribution method. The time to cure will be 72 hours. For severe violations, a Consultant’s account will immediately be suspended until the violation has been remedied.Acknowledgement of receipt of the email is required. Non-response after 3 business days will constitute receipt and the time to cure period will begin.
- Second notice: After the time to cure period is over, if the Compliance team is notified or finds another income claim that is not properly disclaimed, a second email reminding the Consultant of the requirement will be sent. This email will include the sanctions to be imposed should further income claims be made without the required disclaimer. Note that sanctions can include account suspension or termination in extreme cases. During the suspension period all commissions will be forfeited. If after the suspension the Consultant again fails to provide an appropriate disclaimer the sanctions will be escalated until the violation is either remedied or Consultant’s account is terminated. Sanctions are at the sole discretion of MOBE’s compliance department.