DSSRC Administrative Closure #166
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding four Facebook posts that were disseminated by its salesforce members. One post communicated health-related treatment claims regarding skin maladies. The remaining three posts included claims that potential recruits could replace income that was lost due to COVID-19, pay off debts, and earning significant income based the effort they put into the business opportunity.
In its formal, written response to DSSRC, the Company explained that it reached out to its salesforce members to remove the non-compliant posts and reminded them to only share product claims approved by the Company. The Company also noted that it is taking the appropriate measures to ensure that its salesforce members comply with its Policies and Procedures.
Accordingly, DSSRC administratively closed the matter based upon the good faith actions taken by the Company to remove the problematic product and earnings claims and its commitment to closely monitor the future messages being disseminated by its independent sales force members.
(closed on 5/18/2021)