DSSRC Administrative Closure #344
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that markets professional service products including legal and identity theft solutions regarding six earnings claims disseminated on YouTube, Instagram, LinkedIn and on two blog posts. DSSRC was concerned that the claims conveyed messages suggesting that potential independent contractors could typically achieve significant income (e.g., “unlimited earnings”; “financial freedom”) through participation in the Company's business opportunity. This inquiry was initiated by DSSRC as part of its continuous independent monitoring of product and income claims in the direct selling industry.
The Company promptly responded to the inquiry and reinforced its commitment to presenting its direct selling opportunity and related potential earnings in a truthful and accurate manner as well as ensuring that its independent sales force members make truthful and non-misleading claims regarding the Company's business opportunity. The Company stated that it implements a robust compliance program to review materials, as well as train, monitor, and enforce its standards and ensure that earnings claims are supported by objective evidence.
The Company immediately responded to DSSRC’s Notice of Inquiry and actively worked to have the unauthorized posts removed. The Company informed DSSRC that it had contacted the different independent sales associates who posted 5 of the 6 claims, for the removal of subject claims and provided DSSRC with copies of its correspondence with the independent sales associates.
The Company also explained that one claim at issue was not linked to any independent sales associates but was disseminated on a fraudulent website.
The Company was successful in having all six of the claims at issue removed.
DSSRC appreciated the immediate steps taken by the Company to address its concerns and recognized the due diligence exhibited by the Company to facilitate the removal of claims made by both its independent salesforce as well as those made by the party not associated with the Company.
Based upon the good faith efforts exhibited by the Company, DSSRC administratively closed its inquiry.
(Administrative Closure #340, closed on 2/20/25)
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