The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding three social media posts disseminated by the company’s salesforce members that conveyed aggressive product performance claims. Both social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising and marketing in the direct selling marketplace. DSSRC was concerned that such posts conveyed unsupported product and health-related benefits including claims that the company’s products can protect against various diseases.
The first Facebook post prefaced the discussion by stating the purported efficacy of the Company’s product and then continued to list the health and wellness benefits including claims that the company’s products can protect against over twenty diseases. Similarly, the second and third posts included similar health-related statements conveying unsupported claims that the Company’s direct selling products can protect against various and health-related ailments.
The Company took prompt action to address the claims and removed all three of the claims immediately. 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 10/21/20)