DSSRC Administrative Closure #79
DSSRC contacted a direct selling company regarding three 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 the posts conveyed unsupported product, health and wellness benefits and the message that the Company’s direct selling products can protect against COVID-19.
The first Facebook post claimed that the Company’s product can help boost the immune system and was a accompanied a hashtag that referenced COVID-19. The second post depicted an image which suggested that normal product usage would offer adequate protection against the coronavirus. The final post asserted that the Company’s product kills viruses, bacteria and fungus. The post additionally stated that the product was a strong antibiotic that is safe for humans and animals.
After being notified of the posts in question by DSSRC, the Company informed DSSRC that they began an immediate investigation and diligently investigated the source of these claims. The Company was able to trace the inappropriate product claims back to its independent distributors and the individuals were immediately notified of their direct violation of the company policies and procedures and instructed to immediately remove all unauthorized social media posts. At this point, all of the referenced posts were removed.
Additionally, the Company instructed all of its managers to remind their distributors that unsupported claims are prohibited by Company policies. Further, the Company set up an internal procedure to monitor all social media postings more closely to prevent any such incidents from occurring in the future.
As a result of the prompt actions taken by the Company, DSSRC administratively closed the inquiry. pursuant to section 2(II)(6) of the DSSRC Procedures.
(closed on 10/14/2020)