DSSRC Administrative Closure #168
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding four social media posts that DSSRC was concerned contained health-related product claims including statements that the Company’s products could prevent, treat, or cure COVID-19. DSSRC identified the subject social media posts that were made by Company salesforce members through its ongoing monitoring of claims being made in the marketplace.
The Company’s outside counsel and a compliance consultant promptly contacted DSSRC to discuss DSSRC’s concerns. Thereafter, the Company’s compliance consultant reported to DSSRC that three of the social media posts that were identified by DSSRC had been removed from circulation and that the Company had taken compliance actions against the salesforce member responsible for the remaining social media post. The compliance consultant also noted to DSSRC that the consultant was working with the Company’s outside counsel to improve the Company’s training and compliance efforts regarding the dissemination of claims made by salesforce members of the Company.
As a result of the Company’s good faith actions to address DSSRC’s concerns, DSSRC administratively closed this inquiry.
(closed on 5/19/2021)