DSSRC Administrative Closure #105

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) about two Facebook posts disseminated by salesforce members of the Company. The posts in question implied that engaging in direct selling of the Company’s products could provide replacement income for those out of work due to COVID and/or a new career during the current public health crisis.

The Company was able to have its salesforce members remove the subject posts from circulation. In addition, the Company sent correspondence to all of its salesforce members regarding earnings claims with additional training documents that reinforce the Company’s published Policies and Procedures regarding such claims.

The Company also provided DSSRC with documentation and details of its compliance program including creating a compliance log as the Company identifies any claims that may require scrutiny, creating a best practices “Do’s / Don’ts” document of words and phrases to send to all salesforce members, and conducting a conference call with sales leaders to review the Company’s standards and guidance regarding earnings claims. The Company also informed DSSRC that, going forward, it will send quarterly emails to all of its salesforce members as reminder of the Company’s policies regarding the dissemination of earnings claims.

Based upon the Company’s actions to address the issues in this inquiry, DSSRC administratively closed the inquiry.

(closed on 11/13/2020)

 

Subscribe to the Ad Law Insights or Privacy Initiatives newsletters for an exclusive monthly analysis and insider perspectives on the latest trends and case decisions in advertising law and data privacy.

 

 

 

 

Latest Decisions

Decision

National Advertising Division Recommends The Princeton Review Discontinue Point Increase Claims for MCAT Test Preparation Services

New York, NY – April 18, 2024 – In a Fast-Track SWIFT challenge, the National Advertising Division recommended that The Princeton Review (TPR) discontinue claims that its students “Score a 515+ on the MCAT or add 15 points depending on your starting score. Guaranteed or your money back.”

Read the Decision Summary
Decision

Direct Selling Self-Regulatory Council Recommends Trades of Hope Discontinue Salesforce Member Earnings Claims

McLean, VA – April 17, 2024 – The Direct Selling Self-Regulatory Council (DSSRC) recommended that Trades of Hope discontinue certain earnings claims made by salesforce members on Facebook and YouTube. 

Read the Decision Summary
Decision

National Advertising Division Recommends Lily of the Desert Nutraceuticals Discontinue “100% Pure Avocado Oil” Claim for Tropical Plantation Avocado Oil

New York, NY – April 15, 2024 – The National Advertising Division recommended that Lily of the Desert Nutraceuticals discontinue the claim “100% Pure Avocado Oil” for its Tropical Plantation Avocado Oil and avoid conveying the unsupported message that the product is 100% pure avocado...

Read the Decision Summary
Decision

National Advertising Division Finds Certain Fenty Skin Melt AWF Cleanser Performance Claims Supported; Recommends Modifications to Disclosures

New York, NY – April 12, 2024 – The National Advertising Division determined, as part of its routine monitoring program, that Fenty Skin LLC provided a reasonable basis for certain claims for its Melt AWF Jelly Oil Makeup-Melting Cleanser.

Read the Decision Summary