Why Sales Reps Need FTC Compliance Addendums in the High-Ticket Space
Intel Brief
High-ticket companies are beginning to require FTC compliance addendums, protecting sales reps from personal liability when following scripts.
Zach Brown
Founder, Sales Pipeline Pros
Operator Note
95% of the companies in the High Ticket Casino will happily let reps step right into the FTC crosshairs with them—leaving REPS to carry the risk for claims they didn't create—fake scarcity, false income promises, or “done-for-you” google docs.
And before the naysayers chime in,
The FTC has what’s called the “means and instrumentalities doctrine," which essentially says:
if you make the claim, you’re responsible for it—even if you were “just following a script.”
FTC actions in the coaching/consulting space often list BOTH the company and individual sales rep/contractors as defendants.
Now, is the company the bigger target? Of course.
They have the deeper pockets.
But reps CAN get swept up too; and even if the company covers damages,it can still mean being subpoenaed, having to testify, or even facing personal fines or restrictions on working in the industry.
There is a reason these laws exist. This must be taken seriously.
And not just to avoid penalties,but because it's the RIGHT thing to do.
Thankfully, some companies are starting to figure it out.
I just saw the second company in this space require reps to sign a full FTC Compliance Addendum.
It bans deceptive phrases.
It spells out what can and can’t be said.
And it makes ongoing compliance a condition of the role.
Boom. That’s stellar.
It protects the company.
It protects the buyer.
And it protects the rep.
This should be the standard.
Written by Zach Brown
1,100+ hires placed. 300 founders. Five years of reading people for a living. Need a sales hire?
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