DSSRC Administrative Closure #205

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding eight social media posts disseminated on Facebook and YouTube that DSSRC was concerned may be reasonably interpreted as communicating that Company’s products are effective to treat a number of serious health-related conditions including cancer, autism, Parkinson’s disease and arthritis. In addition, DSSRC was also concerned that one of the posts at issue communicated inappropriate earnings claims indicating that salesforce members can earn “12,800 per month” by participating in the Company’s business opportunity. 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 conducted an internal investigation of the non-compliant posts and the salesforce members who disseminated such posts. The Company provided DSSRC with a summary of the investigation’s findings, which included disciplinary actions taken against the salesforce members in question and the removal process for the non-compliant posts. All but one post has been removed from circulation. Though the Company took steps to remove the remaining post (i.e.,YouTube video), the post still remained available for the public to see. DSSRC will continue to monitor the status of this post while the Company attempts to fully remove it from public viewing.

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

(Administrative Closure #205, closed on November 1, 2021)

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