DSSRC Administrative Closure #130

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding a video that was identified during DSSRC’s monitoring of the direct selling industry and which was disseminated by a member of the Company salesforce team. In the video, the salesforce member makes unqualified representations regarding the potential of earning significant income within one year through participating in the Company’s business opportunity. The video also included several references to “6-figure earners” and testimonials indicating that “In less than 2 years I was able to match his [her husband’s] income - $135,000 a year” and that, as part of the Company’s compensation plan, some salesforce members were earning $275,000 a year.

The Company indicated to DSSRC that it was not aware of the video and subsequently had the video pulled within 48 hours after receiving DSSRC’s opening letter.  As a result of the Company’s immediate actions to address DSSRC’s concerns, the inquiry was administratively closed.

(closed on 2/03/2021)

 

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

Decision

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.

Read the Decision Summary
Decision

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.”

Read the Decision Summary
Decision

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. 

Read the Decision Summary
Decision

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...

Read the Decision Summary