DSSRC Administrative Closure #109

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding two 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 the two posts implied that salesforce members can replace their income through participation in the Company’s business opportunity. 

Shortly after the Company received the DSSRC inquiry, it informed DSSRC that it had contacted both salesforce members and had the two Facebook posts removed. Moreover, both salesforce members were provided with additional education regarding the Company’s Policy & Procedures (a copy of which was provided to DSSRC) regarding income claims. The Company also explained to DSSRC that it has an ongoing action plan in place to ensure compliance with DSSRC standards regarding income claims, including the use of income claim disclaimers on marketing materials on a regular basis, and coaching any salesforce members who are in violation of the Company’s income claims policy. 

Based upon the Company’s actions to promptly contact the salesforce members responsible for the posts and have the posts expeditiously removed, DSSRC administratively closed its inquiry.

(closed on 11/30/2020)

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