DSSRC Administrative Closure #191

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding three Facebook posts disseminated by salesforce members which DSSRC was concerned were communicating inappropriate earnings claims. The first post referenced the “unlimited earning potential” that could be realized through the Company’s business opportunity. The second post promised “additional income or a full-time work.” The last Facebook post included the claim of "Freedom, independence, an income, confidence."

The Company promptly responded to DSSRC and removed the first two social media posts. With respect to the last post promising "Freedom, independence, an income, confidence," the Company indicated to DSSRC that the individual responsible for the post was located overseas and in no way affiliated with the Company.

The Company noted that it understood the importance of upholding the DSSRC’s Policies & Procedures and responded swiftly to correct the concerns identified in the inquiry. Moreover, the Company advised DSSRC that it sent out an email to its entire salesforce to remind them of DSSRC’s guidance regarding earnings claims which is consistent with the information presented in the Company’s Consultant Manual to reinforce their compliance with the fundamental principles of claim dissemination.

Accordingly, DSSRC administratively closed this inquiry based upon the prompt good faith efforts demonstrated by the Company to address DSSRC’s self-regulatory concerns.

 

(closed on 8/16/2021)

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