![]() By 1989, Rodan, searching for new acne treatments to prescribe, decided to formulate her own with Fields. “Rodan + Fields takes seriously the importance of adhering to and ensuring our Consultant Community follows FTC guidelines and best practices,” a company spokesperson told Forbes, and “does not tolerate non-compliant or misleading income or product claims.”Īll of this has left Fields and Rodan in a much different place than when the aspiring dermatologists first met in 1984 at Stanford University. The truth, as spelled out in a company disclosure, is that the majority of consultants-67%-made an average of $306 last year. “During an uncertain time like this, one thing I am grateful for is residual income from my home based business,” squawks another, adding, “If you want to make an extra $200, $500, or $1,000 a month, message me!” The FTC concluded the letter by reminding Rodan + Fields that earnings claims “must be truthful and non-misleading to avoid being deceptive” and advised that the coronavirus-related claims cease immediately. ![]() “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!” crowed one of the misleading posts. The FTC said in an April letter to the skincare firm that consultants were making misleading earnings claims on social media tied to the coronavirus. Rodan + Fields was one of 16 multi-level marketing companies to receive a warning letter from the Federal Trade Commission earlier this year. Not that some consultants haven’t tried to capitalize on the health crisis. The company’s revenues and earnings “were already declining meaningfully heading into 2020,” the credit rating firm added, while weak economic growth worldwide adds to operating pressures. Moody’s, in two reports issued in April, cited the coronavirus pandemic as a further threat to Rodan + Fields, which will “need to navigate social distancing practices,” a public health necessity at odds with their direct selling business model. ![]() In response to Forbes’ request for insight into its decline in consultants, a Rodan + Fields spokesperson said: “We are proud of the large number of people who are part of the R+F community and represent and share our brand.” ![]()
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