DSSRC Administrative Closure #22
DSSRC inquired into two product claims and one earnings claim disseminated on Facebook by distributors for a multi-level direct selling company that sells wellness, nutritional supplements, & skin care products. The claims were disseminated by salesforce force members regarding the ability of Company products to treat or prevent coronavirus disease and the earnings people who have recently lost income can make, or both.
The Company informed DSSRC that it reached out to its salesforce members immediately to remove all of the posts that were brought to its attention. The Company added that it provides ongoing training, at events, online, through field leadership zoom calls, and other field communications. To ensure that such training is actually used, the Company implements a “pop up” that appears in each distributor’s back office directing them to this video. This pop up keeps appearing each time they visit the back office until they view the video. When each distributor has finished watching the video, they receive certification in basic Company compliance. The Company also informed DSSRC that it also employs a third-party monitoring vendor to locate and remove unauthorized social media posts.
DSSRC thanked the Company for its good faith effort to address the posts and cautioned the Company to pay particular attention to any future posts and claims suggesting that its products can treat COVID-19 and/or the symptoms associated with the condition. Based upon the prompt actions of the Company to remove the posts, the inquiry was administratively closed.
(closed on 5/1/2020)