DSSRC Administrative Closure #159
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding four Facebook posts that were disseminated by Company salesforce members. All four of the posts made reference to prospective salesforce members being able to “replace lost income” through the Company’s business opportunity and one of the posts included an implied reference to achieving financial freedom.
Shortly after receipt of the inquiry, the Company advised DSSRC that Company Policy & Procedures (a copy of which were provided to DSSRC) prohibit any income claims and that the social media posts that were the subject of the inquiry had been removed. In addition, all of the salesforce members responsible for the posts had been required to complete additional income claims training.
Lastly, the Company noted that all of its Company salesforce members are directed not to make any projections, claims or estimates regarding potential or guaranteed income in marketing materials and that the Company has “an ongoing action plan to ensure compliance with DSSRC standards regarding income claims, including the use of income claim disclaimers on marketing materials on a regular basis, and coaching any salesforce members who are in violation of the Company’s income claims policy.”
DSSRC expressed its appreciation to the Company for its prompt, good faith actions to address the concerns identified in the inquiry and administratively closed the inquiry pursuant to the DSSRC Policy & Procedures.
(closed on 4/8/2021)