DSSRC Administrative Closure #39
DSSRC contacted a direct selling company about thirty-five social media posts disseminated by its salesforce members. The subject social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. Specifically, DSSRC expressed concerns that thirty-three of the social media posts conveyed unsubstantiated earnings claims and two of the posts contained unsubstantiated product claims.
Many of the earnings claims posts contained language that indicated an individual can live a lavish lifestyle and earn a minimum level of income by selling the Company’s products. The most common phrases included, “make a residual income,” “#financialfreedom,” “earn $110 a month; $10.000 a month, even more than $100,000 a month…” The two product claims posts conveyed messages that indicated that by using the Company’s products, one could heal previous injuries or even increase cognitive functioning/cure autism.
In response to DSSRC’s letter, the Company has been actively attempting to identify and remove, or modify, all of the posts that are in violation. The Company has informed DSSRC that is provides compliance training and guides to all of their sales representatives. In addition, the Company is proactive in monitoring various internet sources to identify unapproved posts and to remove the unapproved posts. Upon identifying an unapproved post, the company quickly removes it and then provides remedial guidance or training to the sales representative.
DSSRC expressed its appreciation to the Company for their prompt efforts to remove these posts and their proactive approach to quickly removing any future posts. Based upon the Company’s actions, DSSRC administratively closed the inquiry.