DSSRC Administrative Closure #15
DSSRC contacted a direct selling company regarding unqualified income and product performance claims for its nutritional dietary supplement products that were disseminated by its distributors. The claims appeared on Facebook, Instagram and YouTube. More specifically, the posts by Company distributors claimed unlimited income opportunities, earning potential of up to “$2,000 per month,” and claims of working part time for full time income and replacing full time income”
The inquiry also included a before and after depiction of weight loss that resulted from using the Company’s product and a before and after depiction regarding how the product eliminated a serious skin condition. Neither of the before and after depictions included disclosures of generally expected results as required by the Federal Trade Commission’s Guides on the Use of Endorsements and Testimonials in Advertising. Finally, two YouTube videos were identified by DSSRC which communicated unsupported claims of the business opportunity and atypical (and unqualified) bonus and incentive rewards.
After receipt of the inquiry, the Company reached out to DSSRC and explained that the posts and videos were not authorized or approved by the Company and that the Company had contacted the salesforce members who disseminated the posts and requested that the representations be immediately removed. DSSRC will continue to monitor the commitment of the Company to remove the posts and videos at issue and will re-open this matter if it is not satisfied that Company has used its best efforts to remove the problematic representations as well as similar representations.