A promising new customer at a FINRA member firm has complained verbally to a registered representative that he lost $500 on the first stock recommended by that representative. Wanting to keep the customer, the representative offers to make this up to the customer by giving the customer, the customer's spouse, and each of the customer's 3 children a gift of $100. Which statement is TRUE?

A. This action is a violation of FINRA rules
B. This action is acceptable because it does not exceed the $100 per person gift limit
C. This action is acceptable only if the member firm approves in advance
D. This action is acceptable only if the payment is made by the member firm and not the representative