Italy’s AGCM has fined Juice Plus €1 million EUR for misleading advertising and marketing practices.
The AGCM’s investigation into Juice Plus started in July 2018.
The investigation revealed Italian Juice Plus associates had been giving product testimonials with out disclosing their enterprise pursuits.
As per Juice Plus’ “8 commandments” advertising and marketing materials, the corporate suggested associates
there is no such thing as a express … want for (you to) establish your self clearly in communications as (a) vendor.
Italian Juice Plus associates had been additionally offering deceptive data concerning the corporate’s product.
This data particularly pertained to unsubstantiated weight reduction and medical remedy claims.
Particular medical claims noticed by undercover AGCM brokers had been in relation to hypothyroidism, “flushes”, diabetes, “pores and skin spots”, flu immunization and cystitis.
Weight reduction claims ranged from delicate to 24kg to 35 kg misplaced in three months.
In accordance with the AGCM, a lot of Juice Plus’ advertising and marketing deception in Italy befell in secret Fb teams.
For his or her half Juice Plus claimed to haven’t any data of their affiliate’s advertising and marketing efforts, together with the key Fb teams (of which there have been apparently a whole bunch).
In response to AGCM’s investigation and preliminary findings, Juice Plus claimed to have cracked down on its Italian associates.
The corporate additionally eliminated or modified a number of of its official product advertising and marketing brochures.
The AGCM acknowledged however rejected these resolutions as a conclusion to the case.
AGCM additionally rejected the notion that Juice Plus was not accountable for the conduct of its associates.
JuicePlus claims to not be accountable for the exercise carried out
by their very own sellers, as they function independently.In actuality, because it seems in (collected) paperwork, the “autonomy” of (Juice Plus) sellers is topic to strict industrial supervision and subordination to the directives imposed by (Juice Plus executives), reminiscent of to not doubt the traceability of the work of the appointees to JuicePlus itself.
In concluding their investigation, AGCM discovered Juice Plus had violated a number of articles of the Italian Client Code.
Violations pertaining to misleading advertising and marketing practices and unsubstantiated medical claims, had been attributed on to Juice Plus S.R.L in Italy, Juice Plus GmbH in Europe andJuice Plus company within the US.
In response to the AGCM effective, BusinessForHome studies that Juice Plus terminated its European management.
Juice Plus terminated quite a few prime earners, who’ve been with the corporate for a few years, in what thought-about by many business leaders, as an outrageous motion.
Paolo Meucci, for years Juice Plus+ Nr. 1 in Europe, as the dual brothers Stefano Orru and Andrea Orru appears to be concerned.
The issue issues not solely the communications and practices not complying with these associate franchise, but additionally their reluctance to alter their practices regardless of months of consciousness of the issue.
One constructive to come back out of AGCM’s investigation was that in 2017, 70% to 90% of Juice Plus gross sales in Italy had been to retail prospects.
For some purpose although 2018 figures don’t seem accessible.