DSSRC Administrative Closure #154

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding three Facebook posts and a YouTube video that came to DSSRC’s attention pursuant to its independent monitoring of direct selling claims disseminated on social media.  The first Facebook post included a video testimonial and claims pertaining to the medical benefits that could result from using the Company’s products. The second Facebook post included a claim that the Company’s product can “fight the virus” and the remaining Facebook post stated that Company salesforce members would be financially free through participating in the Company’s business opportunity. Lastly, the YouTube video included testimonials from several woman who sold products for the Company and discussed the financial independence that came from participating in the Company’s business opportunity.

Once the Company was informed about the posts at issue it took immediate action. More specifically, DSSRC was informed that the three Facebook posts were removed within 48 hours after they were brought to the Company’s attention. With respect to the YouTube video, the Company informed DSSRC that the video was posted by a salesforce member residing in Australia and although it was unable to reach the salesforce member, it made a request to YouTube that the post was in violation of Company Policy. The Company informed DSSRC that should the platform deny its removal request that it would pursue other legal remedies to have the video disabled.  

DSSRC has noted in past inquiries that if a direct selling company is unable to contact a salesforce member that has disseminated an unauthorized post, it is recommended that the company take additional steps to remove such claims from the marketplace including a written request to the platform in question. If the post by a former salesforce member occurs on a platform without a reporting mechanism, DSSRC recommends that the company should contact the platform in writing and request removal of the subject claim(s) or post. DSSRC has confirmed that the Company has made such a request to YouTube.

Accordingly, based upon the Company’s actions in removing the three Facebook posts and its good faith, due diligence in attempting to address DSSRC’s concerns regarding the Australian YouTube video, DSSRC administratively closed the inquiry pursuant to the DSSRC Policy & Procedures.

(closed on 04/01/21)