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)