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)

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