DSSRC Administrative Closure #115
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding two Facebook posts by Company salesforce members that referenced serious health-related conditions that purportedly could be addressed by use of the Company’s products.
The Company thanked DSSRC for bringing the social media posts to its attention. The Company informed DSSRC that its compliance team was successful in efforts to have the salesforce members remove the posts. DSSRC independently confirmed that both posts were removed.
The Company stated that both social media posts were made by new Company distributors and that both posts originated from outside the United States. The Company further explained to DSSRC that its compliance team was nonetheless able to identify the salesforce members responsible for the posts, educate the salesforce members why the posts violated the Company’s policies regarding product claims, and have the posts removed. The Company stated that both violations were an opportunity to provide additional education to new distributors on what is and what is not acceptable with respect to product claims.
Based upon the Company’s prompt, good faith actions to address the concerns of DSSRC, DSSRC administratively closed this inquiry.
(closed on 12/30/2020)
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