Not all crises are caused by major accidents or explosions. Here’s a case study an an Federal Trade Commission crisis:  

The Client: Billion-dollar US-based International personal care and nutrition product company. Marketed through a global network of more than 600,000 active distributors.

The Challenge:  The Federal Trade Commission (FTC) alleged client made false claims about key products. The company agreed to pay settlement damages without admitting fault.

Client Impact: Client could lose existing and potential distributors, corporate credibility and ultimately, global revenue.  The company agreed to settle FTC claim to protect distributors and employees from costly and lengthy court procedures. The value of top products was on the line.

Goal: Successfully manage coverage to protect the company’s corporate credibility and retain existing distributors and global revenue.  

Strategy: 

• Developed message, press releases and talking points for media,        employee & stakeholder audiences. 
•  Employees and key stakeholders were told prior to the press release announcement. C-suite executives answered questions and addressed concerns from employees and key distributors.
• All spokespeople and company executives were media trained. 
• Along with existing community programs, additional ones were added through company's volunteer service and donations.  

• The press release went out a day before the FTC announcement. As a result, the FTC's release was old news. 

Result: Company executives, ready to respond, were surprised. Only a few calls from stakeholders or media. The management team gave key stakeholders a heads-up prior to the announcement thus addressing questions and concerns in advance.

• All objectives were met. Maintained and increased executive level distributors, company revenues and maintained employee morale.
  
• The client goal was achieved.