Understanding Income Claim Regulations
Income claims—statements about earnings potential from coaching programs or courses—face significant regulatory scrutiny from the FTC. Claims about how much customers can earn must be truthful, substantiated, and typically disclose that results aren't typical if featuring exceptional earners.
The Business Opportunity Rule affects some coaching and course businesses. Programs that make income claims and require payment may be subject to disclosure requirements, including providing income statements showing what participants actually earn.
Lifestyle marketing implying income outcomes faces the same scrutiny as explicit income claims. Images of luxury cars, expensive travel, or lavish homes connected to program participation may constitute implied income claims subject to FTC requirements.
Social proof showing participant earnings requires documentation. When marketing features participants who earned specific amounts, you must be able to substantiate those claims and typically disclose whether results are typical.
Processing Implications of Income Claims
Income claim marketing creates processing risk. Processors aware of FTC enforcement in this area evaluate income claim marketing carefully. Unsubstantiated claims suggest both regulatory exposure and elevated chargeback potential.
Chargeback defense is complicated by income claims. When customers dispute because they didn't earn what marketing suggested, your claims become evidence in the dispute. Exaggerated claims undermine defense.
High-profile FTC actions against income claim marketers have increased processor sensitivity. Coaches and course creators featured in enforcement actions face account terminations and industry-wide reputation damage.
Documentation of claim substantiation supports processing relationships. Evidence that income claims are based on actual participant results, with appropriate typicality disclosures, demonstrates responsible marketing.
How Goodlane Group Supports Income Claim Compliance
We help coaching and course businesses understand how income claim regulations affect payment processing. The intersection of FTC requirements and processor expectations requires careful navigation.
Our review of marketing identifies income claim concerns that create processing risk. Addressing claims that processors may find problematic prevents account issues.
We connect businesses with processors appropriate for their marketing approaches. Understanding processor policies on income claims helps match businesses with appropriate partners.
For businesses facing processor concerns about income claims, we help address issues and develop compliant marketing approaches.