DSSRC Administrative Closure #11
In 2020, a direct selling company contacted DSSRC seeking guidance regarding company events at which top distributors are recognized. The direct selling company stated that it had previously presented some of its highest performing distributors with oversized checks at the event but, since the success of those top distributors was not typical, it was concerned that the oversized checks might convey an improper message.
After conversations with DSSRC regarding the type of disclosure that is required in connection with the presentation of atypical results, the direct selling company decided to discontinue use of large checks at its events and recognize top distributors in other ways.
(closed on 2/7/2020)