DSSRC Administrative Closure #75
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company regarding a Facebook post that referenced the Company as providing an “unlimited earnings opportunity” and “financial freedom” for salesforce members.
Section 5 of the DSSRC’s Guidance on Earnings Claims for the Direct Selling Industry states that representations from the Company or salesforce members promising an unlimited income opportunity are considered prohibited income claims that create unreal earnings expectations for consumers. In addition, claims that potential recruits will achieve financial freedom through a direct selling business opportunity are considered high risk claims are strongly discouraged by DSSRC and will be closely scrutinized regarding the implied message being conveyed to consumers.
Immediately after receipt of the self-regulatory inquiry the Company informed DSSRC that the two claims at issue had been removed and the social media post modified. DSSRC expressed its appreciation to the company for its prompt actions and, as a result, DSSRC administratively closed the inquiry.
(closed on 10/7/2020)