DSSRC Administrative Closure #116
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding six posts made on social media by Company salesforce members. DSSRC was concerned that the social media posts disseminated by these Company salesforce members included unsubstantiated product, health and wellness benefits including claims that the Company’s products can protect against disease and COVID-19 and that the Company’s business opportunity would help salesforce members achieve financial freedom.
The direct selling company thanked DSSRC for bringing the social media posts to its attention and noted that it reached out to the distributors regarding the posts verbally, via email, and via FB messenger. As a result of the Company’s efforts five of the six social media posts in question were removed from circulation and the remaining post was modified to remove the reference to financial freedom.
The direct selling company stated that it strives to be in compliance with the Federal Trade Commission's (FTC) and Direct Sales Association's (DSA) rules, regulations, policies, and procedures especially as it relates to income claims and health claims. The company informed DSSRC that it has made extra efforts to ensure that the Company’s distributors are provided group trainings on the issue of claim dissemination and that salesforce members have been provided additional information posted in their back offices. The Company stressed to DSSRC that it was committed to further training and monitoring of its salesforce members.
Based upon the Company’s good faith actions to address the concerns of DSSRC, DSSRC administratively closed this inquiry.
(closed on 1/5/2021)
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