DSSRC Administrative Closure #107
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding a Facebook video post disseminated by a Company salesforce member. The video came to DSSRC’s attention pursuant to its routine monitoring of social media posts in the direct selling industry and it was determined that the video implied that the direct selling business opportunity offered by the Company could typically result in salesforce members earning and/or replacing career level income.
The approximately seven-minute Facebook video was posted in April 2019 and featured several unqualified testimonials from Company salesforce members who indicated the possibility of earning significant income that could be considered career-level. As noted by DSSRC in section 6 of its Earnings Claim Guidance for the Direct Selling Industry, some words and phrases commonly used in earnings claims can carry a particularly high risk of being misleading to consumers. Such words and phrases include claims such as “financial freedom,” “full-time income,” “replacement income,” “residual income,” and “career-level income.”
Shortly after receipt of the self-regulatory inquiry, the Company contacted the salesforce member responsible for the post and had the video removed within 24 hours.
Based upon the Company’s actions to promptly disable the concerning video, DSSRC administratively closed its inquiry.
(closed on 11/23/2020)
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
National Advertising Division Recommends Blueprint Test Preparation Discontinue Certain MCAT Score Improvement Claims
New York, NY – April 22, 2024 – The National Advertising Division recommended Blueprint Test Preparation discontinue certain express and implied claims made in connection with its four MCAT preparation courses, including claims that Blueprint students raise their MCAT scores by 15 or 13 points on average.
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.”
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.
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...