DSSRC Administrative Closure #21
DSSRC inquired into a product claim disseminated on Facebook by a distributor for a multi-level direct selling company that sells personal care, health & wellness, and household care products. The comparative, quantified performance claim pertained to the Company’s antioxidant blend product being more potent than Vitamins A, C, and E.
The Company informed DSSRC that the individual was identified through its monitoring vendor and is part of the Company’s Australian market. The individual who made the post is not a Company representative who can build a downline sales team but rather is enrolled in the Company only to market and share a discount referral code with customers who then purchase product. The customers in turn may also refer other customers using a similar discount referral code. The individual responsible for the post is not eligible to earn commissions or enroll other representatives. Their only benefit is potential product credit for sharing the product. They do have a small incentive to share but it is not the same as those who earn commissions.
The Company has been in contact with individual who made the post who is currently working on cleaning up their historical social media content, including from when she was a customer. The account was also placed on suspension until such time that all required content is removed.
DSSRC expressed its appreciation to the Company for its good faith effort to address the post and based on its prompt actions the inquiry was administratively closed.
(closed on 4/30/2020)