DSSRC Administrative Closure #10

DSSRC commenced an inquiry into a direct selling company regarding nine income claims for its health and wellness products. Claims from Company salesforce members appeared on various social media platforms including Facebook, Instagram and YouTube and included unqualified references to the Company’s bonus and incentive reward program including references to luxury automobiles and atypical income representations. Income claims were also communicated in hashtags that were included in several of the social media posts.

After receipt of DSSRC’s opening letter the Company reached out to DSSRC and indicated that it had contacted the Company salesforce members who had posted the subject claims and informed DSSRC that the posts would be immediately removed. The Company also informed DSSRC that it would advise its salesforce to include a disclosure of the results that could be generally expected by potential salesforce members to any social media posts that communicate atypical earnings or Company rewards.

(closed on 1/7/2020)