The Legal Stuff:  Income Claims I wanted to start off with my most important concern. PLEASE READ THIS ONE – this is the top issue that the FTC has raised with me directly in my last two meetings, and I also heard about this from multiple State Attorneys General in a recent conference I attended. In other words, this is a biggie that if companies and their independent distributors are not paying attention to, could literally shut down a company!

Post #1 - Income Claims – or how a picture can tell a thousand words… [Section 3.6.3 of the P&P]

As a Team Beachbody Coach, there is often much to celebrate. You celebrate your achievements in health and fitness, in reaching financial milestones, as well as the achievements of your team. Please remember however, whenever you share information about any financial success you have achieved as a Team Beachbody Coach it is absolutely imperative that you include the required income disclaimer included below. Sharing your financial success takes many forms: showing a Diamond pool bonus check, saying that you have finally paid off your 10 year credit card in just 12 months of being a Beachbody Coach, or showing a picture of your new car/house/boat/island with “Thank You Beachbody!” written underneath. Each of these examples is a direct income claim, and applies whether you are posting on social media, promoting on a website, or doing a flyer. Another important requirement is that the disclaimer has to be tied to the claim you are making – burying it down below in the comments section for example does not work.

The reason why a disclaimer is critical for these claims is that as government regulators see it, without a disclaimer, they view these claims as recruiting promises that these are the results that anybody joining the business should expect. This is why our income statement has always read:

Beachbody does not guarantee any level of success or income from the Team Beachbody Coach Opportunity. Each Coach’s income depends on his or her own efforts, diligence, and skill.

As Beachbody continues to be a leader in the direct sales industry, we all must ensure that our fellow Team Beachbody Coaches, as our ambassadors, remain compliant with these key requirements. Similarly, teaching this throughout your organization is just as important. As a related important disclaimer, whenever directly soliciting somebody about the financial benefits for them to join as a Coach, you must also additionally include a link to our Statement of Independent Coach Earnings, which can be found at www.teambeachbody.com/coach, and also through this link: http://www.beachbodycoach.com/…/statement_of_independent_co….

To review the policy relative to income claims, please visit the Team Beachbody Coach Policies & Procedures, Section 3.6.3. If you have any further questions, our compliance team is available to you via phone (310-295-5760) or via email: compliance@beachbody.com.

Jonathan

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