DSSRC Administrative Closure #224
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims and products claims that were disseminated on social media by the Company’s salesforce members. The claims at issue included fifteen (15) posts that were disseminated on Facebook and YouTube and included unlimited income, full-time income claims (e.g., “Can be a great side job for that little extra or full time income”). DSSRC expressed its concern to the Company that these posts communicated atypical, unsupported earnings claims regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity.
The inquiry also included several product performance claims that DSSRC determined may be reasonably interpreted as conveying an unsupported message that Company’s products are effective in addressing health-related conditions (e.g., “I love this product for my eczema”).
The Company promptly responded to DSSRC’s inquiry and agreed that the earnings claims and products claims at issue in this inquiry were unsupported and should not have been made. The Company was able to have the fifteen (15) social media posts taken down shortly after DSSRC commenced this inquiry.
Based upon the good faith efforts taken by the company to address DSSRC’s concerns, DSSRC administratively closed the inquiry.
(Administrative Closure #224, closed on March 23, 2022)
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