DSSRC Administrative Closure #201

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding five social media posts that DSSRC was concerned were communicating inappropriate earnings claims. The posts included references such as “replace another income,” “full-time opportunity,” “travel for free,” “what would you do with an extra $500 a month?”, and “looking for a new career or secondary income source?” The posts were identified by DSSRC pursuant to its ongoing, independent monitoring of the direct selling industry.

The Company promptly responded to DSSRC’s notice of inquiry and noted that they are strong advocates of transparency regarding income claims. All five posts have been removed from circulation. The Company informed DSSRC that salesforce members are given an agreement and a copy of business policies that inform salesforce members of the appropriate language to use when posting income claims. In addition, salesforce members go through a training related to the issue of income claims and are given examples of what a compliant post looks like. The Company’s income disclosure statement can be found in various places on their website and a link to the statement is required on any post related to income. Lastly, the Company noted that their leadership team is in constant discussion on how to improve and monitor the clarity of earnings claims related to their business.

Based on the Company’s good faith actions to address DSSRC’s concerns, DSSRC administratively closed this inquiry.

(closed on 10/19/2021)