DSSRC Administrative Closure #176

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding four social media posts made by salesforce members of the Company. DSSRC was concerned that these posts conveyed the message that the Company’s products can effectively prevent or treat serious health-related conditions including eczema. DSSRC also brought to the attention of the company a series of testimonials on the Company’s website that communicated examples of salesforce members earning extraordinary income without any disclosure of the income that can be generally expected by the typical salesforce member. The posts were identified by DSSRC pursuant to its ongoing, independent monitoring of the direct selling industry.

The Company acknowledged DSSRC’s notice of inquiry and promptly began contacting the salesforce members responsible for the posts and providing the salesforce members with additional instruction regarding the Company’s policies and procedures for marketing claims. The posts identified by DSSRC were all promptly removed and the testimonials were unpublished from the Company website.