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WHY Is the FTC Cracking Down on Earnings Claims?


New FTC Guidelines

WHY Is the FTC Cracking Down on Earnings Claims?

FTC Statement: Consumer Losses Attributable to Deceptive Ad Claims

    *  FTC v. Wealth Press (1-11-23): Trade Recommendations in Financial Markets – settlement  $1.7 Million

    *  FTC v. Lurn (3-2-23): eCommerce Coaching $65 Million

    *  FTC v. DK Automation (11-16-22): Amazon Biz Ops - $52 Million

Net Impression

    > How consumers perceive Earnings Claims

    > Not what marketers imply, what consumers infer

        *  Reasonable Consumers (not gullible)

        *  Must be Substantiated

Earnings Claims

  • We'll help you build your Autopilot AMZ Business!

  • Average monthly revenue $165,015

  • Conservative Profit Margin 25%

  • Average Monthly Units Sold 796

Apply Net Impression to Earnings Claims

  • Promised results $165K/Mo are “Typical”

  • I should be able to achieve the same!

  • “Reasonable Consumers”

Is the Typical Disclaimer Enforceable? 

  • Promised results Aspirational

  • No promise that you can achieve the same!

  • You may not make any money


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