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BBB National Programs rules on claims against EOR platform Deel

BBB National Programs rules on claims against EOR platform Deel

Katherine Alvarez
| August 15, 2024
ADVERTISING

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BBB National Programs’ National Advertising Division determined that Deel, a global employer-of-record platform headquartered in San Francisco, in connection with its payroll and human resource information system, provided a reasonable basis for certain claims such as customers can “save up to $20,000 per year” as well as claiming to be an “industry leading global payroll software.”

However, it recommended that Deel modify or discontinue certain other claims, including comparative claims versus a competitive native payroll software, legal compliance and customer support.

The National Advertising Division of BBB National Programs provides independent self-regulation and dispute resolution services to guide the truthfulness of advertising across the US. The decision came in response to a challenge brought by Deel’s competitor, People Center, doing business as Rippling, which challenged claims about “native” and “in-house” payroll systems that appeared in charts on Deel’s website:

  • “Payroll service is native and operated in-house in every country – Deel ✓, Rippling X”
  • “Payroll service is native and operated in-house in every country – Deel ✓ Yes, Rippling X No, they currently use partners in some countries.”

The NAD determined that customers could reasonably take away the message that native payroll includes native payroll software. Further, customers may reasonably take away the message that Rippling does not offer in-house and native payroll in all the countries in which it offers global payroll (outside of employer of record).

NAD recommended that Deel modify these claims by clearly and conspicuously defining what “native” means and clarifying that the comparison with Rippling also includes countries where they offer payroll as part of their employer of record services.

Details of the decision are available online.

During the proceeding Deel permanently discontinued and modified certain claims. In its advertiser statement, Deel stated that it will comply with NAD’s decision.