Direct Selling Self-Regulatory Council Recommends Daxen Discontinue Certain Earnings and Health-Related Product Performance Claims

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McLean, VA – November 24, 2021 – The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs recommended that certain product performance and earnings claims made by Daxen, Inc. and its salesforce be discontinued. Central to this inquiry was a concern that the challenged product performance claims communicated aggressive and unsupported health-related product performance claims. 

The inquiry was commenced by DSSRC through its ongoing independent monitoring of advertising and marketing claims in the direct selling industry. The claims that were the subject of the inquiry were disseminated by Daxen salesforce members on social media. Daxen is a direct selling company that sells dietary supplements, food and beverages, personal care products, skincare and cosmetics, household products, and a water treatment system.

Product Claims include, but are not limited to:

• “HEALTH BENEFITS OF SPIRULINA
  • RICH IN NUTRIENTS
  • ENHANCE IMMUNE SYSTEM
  • ANTI-INFLAMMATION
  • LOWER BLOOD PRESSURE
  • REDUCES CHOLESTEROL
  • ANTI-ALLERGY
  • PREVENT ANEMIA
  • FOR WEIGHT LOSS
  • LOWER BLOOD SUGAR
  • ANTIOXIDANT
  • ANTI-RADIATION
  • ENHANCE GUT HEALTH
  • GIVE STRENGTH AND ENERGY”
• “Abdominal pain repeated diarrhea, constipation, etc.,
  • Skin diseases like, acne eczema, psoriasis and mold or fungus
  • Heart disease, store, bladder, and other internal organs
  • Hemorrhoids or almoranas
  • Arthritis, gout at rayuma
  • Diabetes
  • High blood pressure
  • Cancer and pain caused by cancer
  • AIDs prevention
  • Blockage of the vein
  • Varicose veins
  • Kidney stones
  • Disease of a woman like irregular, weak or super-powerful periods, can help women easily capture and difficult conceive
  • Trouble in urination and bowel movements
  • Losing or excess weight
  • Easily exhausted
  • Pain or numbness of foot, hands, or body
  • Trouble sleeping
  • Headaches, migraine”
• “Daxenderma Extracts, Helps Prevent @ Cure:
  • High blood pressure, lung disease, stroke, mumps, diabetic, Alzheimer’s, idney failure, blurred vision, goiter, asthma, liver problems, epilepsy, tuberculosis, PCOS, tumor, liver cirrhosis, hepatitis, cysts, colon, breast cancer, arthritis, hyper acidity, hemorrhoids, sinusitis, ulcer, constipated, gallstones, malaria, neurosis, prostrate”
• “Daxen products prevent:
  • Cancer
  • Hypertension
  • Arthritis
  • Anti-aging
  • Nasal problems
  • Migraines
  • Sinusitis
  • Obesity
  • Constipation
  • Tuberculosis
  • Tumor
  • Hematoma
  • Skin rashes
  • Varicose veins
  • Peptic ulcer
  • High blood pressure
  • High cholesterol
  • Cold and cough
  • Chronic bronchitis
  • Frequent urination
  • Urination difficulties
  • Rheumatism
  • Gastric hyperacidity
  • Menstrual cramps
  • Renal disease”

As noted in previous DSSRC cases, health-related claims must be supported by competent and reliable scientific evidence, as defined by the Federal Trade Commission (FTC). DSSRC informed Daxen of its concern that these product claims may convey unsubstantiated health-related and wellness benefits. Daxen did not contest DSSRC’s concerns. 

Following DSSRC’s initial inquiry, four more social media posts were identified that were disseminated by Daxen salesforce members and included similar claims regarding the efficacy of Daxen products to treat serious health-related conditions as well as the ability of the typical Company salesforce member to earn significant income from the Daxen business opportunity.

DSSRC informed Daxen of its concern that a reasonable consumer may interpret these and similar claims to mean that salesforce members can earn significant income from the Daxen business opportunity and again, Daxen did not contest DSSRC’s concerns. 

DSSRC requested that Daxen immediately remove all social media posts indicating that its products are efficacious against the stated health-related conditions as well as the challenged claims that Daxen salesforce members will receive significant income from the Daxen business opportunity. 

While DSSRC appreciated the company’s commitment to having the subject posts removed from social media, and good faith effort to remove most posts from circulation, DSSRC remained concerned that several posts are still publicly available. 

Though Daxen is an international company with many salesforce members located outside of the United States, DSSRC reminded Daxen that it is nonetheless responsible for the truthfulness and accuracy of product and/or business opportunity claims disseminated by its independent salesforce members. DSSRC has requested that the company demonstrate that it made a good faith effort to have the improper content removed, such as providing DSSRC with a copy of the takedown requests that were sent to the salesforce members responsible for the content. 

Should DSSRC continue to identify social media posts that include claims stating that Daxen products can treat or provide relief from the type of health-related conditions at issue in this inquiry, it will commence a compliance inquiry with the Company to evaluate that steps have been taken by the Company (including providing salesforce members with access to proper training) to ensure that Daxen salesforce members are not disseminating inaccurate and unauthorized product performance and earnings claims

All BBB National Programs case decision summaries can be found in the case decision library. For full text of DSSRC decisions, visit the DSSRC Cases and Closures webpage.

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About BBB National Programs: BBB National Programs is where businesses turn to enhance consumer trust and consumers are heard. The non-profit organization creates a fairer playing field for businesses and a better experience for consumers through the development and delivery of effective third-party accountability and dispute resolution programs. Embracing its role as an independent organization since the restructuring of the Council of Better Business Bureaus in June 2019, BBB National Programs today oversees more than a dozen leading national industry self-regulation programs, and continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-directed marketing, and privacy. To learn more, visit bbbprograms.org.

About the Direct Selling Self-Regulatory Council: The Direct Selling Self-Regulatory Council (DSSRC), a division of BBB National Programs, provides independent, impartial monitoring, dispute resolution, and enforcement of false product claims and income representations made by direct selling companies and their salesforce members across digital platforms. The DSSRC seeks to establish high standards of integrity and business ethics for all direct selling companies in the marketplace.