McLean, VA – October 5, 2022 – The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs referred certain Fifth Avenue Collection, Inc. earnings claims to the Federal Trade Commission (FTC) for possible enforcement action after the multi-level direct selling company selling jewelry products failed to respond to DSSRC’s inquiry.
At issue in DSSRC’s inquiry are earnings claims disseminated by salesforce members on social media implying that participating in the company’s business opportunity will result in earning significant, career-level income.
The earnings claims in question were brought to the company’s attention by DSSRC as part of its ongoing independent monitoring of the direct selling marketplace. The Fifth Avenue Collection earnings claims in question include, but are not limited to:
DSSRC expressed its concern that such earnings claims convey the message that participants in the company’s business opportunity can generally expect to earn significant and career-level income.
The company was first sent a Notice of Inquiry from DSSRC in June 2022, to which the company did not respond. After several additional attempts to contact various individuals at the company, the company failed to respond to DSSRC’s inquiry and provide substantiation for the claims.
In accordance with DSSRC’s Policies and Procedures, if a company does not respond to DSSRC or declines to participate, DSSRC will issue a case decision indicating the company was unresponsive or declined to participate in the DSSRC process and refer the matter to the appropriate government agency. Moreover, according to section (V)(B) of the DSSRC Policies and Procedures, if the subject company fails to submit a responsive statement, DSSRC may refer the matter to an appropriate government agency for review and possible law enforcement action. Accordingly, based upon the company’s failure to respond to DSSRC in the self-regulatory process, DSSRC referred this matter to the FTC.
About BBB National Programs: BBB National Programs is where businesses turn to enhance consumer trust and consumers are heard. The non-profit organization creates a fairer playing field for businesses and a better experience for consumers through the development and delivery of effective third-party accountability and dispute resolution programs. Embracing its role as an independent organization since the restructuring of the Council of Better Business Bureaus in June 2019, BBB National Programs today oversees more than a dozen leading national industry self-regulation programs, and continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-directed marketing, and privacy. To learn more, visit bbbprograms.org.
About the Direct Selling Self-Regulatory Council: The Direct Selling Self-Regulatory Council (DSSRC), a division of BBB National Programs, provides independent, impartial monitoring, dispute resolution, and enforcement of false product claims and income representations made by direct selling companies and their salesforce members across digital platforms. The DSSRC seeks to establish high standards of integrity and business ethics for all direct selling companies in the marketplace.