DSSRC Administrative Closure #118

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company regarding five social media posts (i.e., four Facebook posts and one Instagram post) disseminated by independent salesforce members on behalf of the Company. The three social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. 

Specifically, DSSRC expressed concern that the five disseminated social media posts conveyed unsubstantiated product, health and wellness claims stating that the Company’s CBD products can protect against serious health-related conditions including fibromyalgia, diabetes and epilepsy. 

After being notified of the posts, the company initiated a telephone call with DSSRC and took immediate steps to have all five of the posts removed. Although two of the posts originated from overseas salesforce members, the Company was able to contact the salesforce members responsible for the posts and have them removed. Subsequently, the Company informed DSSRC that it also identified three video posts that were in violation of Company regulations and took action to contact the salesforce members responsible for the videos and have them disabled. 

DSSRC expressed its appreciation to the Company for its good faith efforts in removing the posts identified in the subject inquiry and, additionally, in the spirit of voluntary self-regulation, disabling videos found by its internal compliance team that were in violation of Company policy. Based upon the Company’s prompt remedial actions, DSSRC administratively closed the inquiry.

(closed 1/08/2021)

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