UNITED STATES OF AMERICA 

Federal Trade Commission 

WASHINGTON, D.C. 20580 

 

 

April 24, 2020 

Via Electronic Mail

Rodan & Fields, LLC 

c/o Jennifer Chaloemtiarana, Chief Legal Officer 

60 Spear Street, Suite 600 

San Francisco, California 94105 

Warning Regarding Earnings Claims Related to Coronavirus 

Disease 2019 (COVID-19) 

Dear Ms. Chaloemtiarana, 

FTC staff has reviewed social media posts made by Rodan & Fields, LLC (“Rodan + 

Fields”) business opportunity participants or representatives that unlawfully misrepresent that 

consumers who become Rodan + Fields business opportunity participants are likely to earn 

substantial income. This letter is to provide you with information about laws and regulations 

enforced by the Federal Trade Commission (“FTC”) that may bear upon your business activities, 

including the activities of your business opportunity participants and representatives. 

Some examples of earnings claims made by your business opportunity participants or 

representatives include: 

 “RODAN and FIELDS is always open for business even during quarantine! I’ve 

been working from home for over 3 years now and still making money when 

other people aren’t ! Isn’t it about time you found out what it is I do and how this 

company really works ? . . . #workfromhome #financialfreedom.” 

 “We all need something to fall back on when our Plan A crumbles. For many, 

many people right now, the Plan A is no longer providing. Given that we are all at 

home trying to manage this new normal ... Let’s chat and get all your questions 

answered and start getting that Plan B up and running ... bringing in that EXTRA 

INCOME! . . . #extraincome . . . #financialfreedom.” The text accompanied an 

image with the text “no risk,” “no experience needed,” and “can be profitable 

immediately.” 

 “During an uncertain time like this, one thing I am grateful for is residual income 

from my home based business. If you’re struggling, and could use an extra few 

hundred dollars a month, why not give this a try.... #residualincome.” The image 

accompanying the post states, “I have spots available on my team!!! If you want 

to make an extra $200, $500, or $1,000 a month, message me!” 

 Representations about a business opportunity, including earnings claims, violate Section 

5 of the FTC Act, 15 U.S.C. § 41 et seq., if they are false, misleading, or unsubstantiated and 
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material to consumers. Express and implied earnings claims must be truthful and non-misleading 

to avoid being deceptive, which means that claims about the potential to achieve a wealthy 

lifestyle, career-level income, or significant income are false or misleading if business 

opportunity participants generally do not achieve such results. Even truthful testimonials from 

participants who do earn significant income or more will likely be misleading unless the 

advertising also makes clear the amount earned or lost by most participants. Your business 

opportunity participants and representatives must immediately cease making all express and 

implied earnings claims that would be false or misleading to current or prospective participants. 

You are responsible for the claims of your business opportunity participants and 

representatives. As the FTC stated in the January 2019 Business Guidance Concerning MultiLevel Marketing, the compensation structure of a Multi-Level Marketing entity (“MLM”) may 

create incentives for its participants to make certain representations to current or prospective 

participants. “As a consequence, an MLM should (i) direct its participants not to make false, 

misleading, or unsubstantiated representations and (ii) monitor its participants so they don’t 

make false, misleading, or unsubstantiated representations.” 

You are advised to review all claims relating to your business opportunity and 

immediately cease, and require your business opportunity participants and representatives to 

cease, making claims that are not supported by the evidence or substantiation described above. 

Within 48 hours, please send reply via email to COVID-19-Task-Force@ftc.gov 

describing the specific actions you have taken to address the FTC’s concerns. If you have any 

questions regarding compliance with the FTC Act, please contact us at COVID-19-TaskForce@ftc.gov. 

 Sincerely, 

 Federal Trade Commission Staff