DSSRC Administrative Closure #117

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding four Facebook posts disseminated by Company salesforce members that were identified during DSSRC’s monitoring of the direct selling industry. DSSRC expressed its concern to the Company that two posts implied that the Company’s products offer protection from COVID-19. The two other social media posts referenced the Company’s business opportunity that would allow salesforce members to receive “residual income” and find a source of income during the coronavirus pandemic.  

Shortly after the Company received the DSSRC inquiry, it informed DSSRC that it had contacted the salesforce members responsible for the posts and had them disabled. Subsequently, the Company reached out and spoke with DSSRC to learn about the self-regulatory process and provided assurance that it will increase its compliance oversight through additional training and engaging with an outside monitoring vendor.

Based upon the Company’s good faith actions to have the subject social media posts expeditiously removed and take increased steps to bolster its compliance processes, DSSRC administratively closed its inquiry.

(closed on 1/06/2021)

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