DSSRC Administrative Closure #218

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue were made via 11 posts on Facebook and included quantified earnings claims as well as claims that Company salesforce members can earn trips, significant income, free jewelry, financial freedom, or have a new career through the Company’s business opportunity. DSSRC expressed its concern to the Company that these Facebook posts communicated atypical earnings claims regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity.

The Company promptly responded to DSSRC’s inquiry and agreed that the earnings claims at issue in this inquiry were unsupported and should not have been made. The Company was able to have 8 of the 11 social media posts taken down shortly after DSSRC commenced this inquiry. As to the remaining three posts, the Company was ultimately able to have two of the posts removed and demonstrated to DSSRC that it was continuing its efforts to resolve the one remaining post at issue.

Accordingly, DSSRC administratively closed the inquiry and indicated to the Company that it will continue to monitor the marketing claims being disseminated by Company salesforce members on social media.

(Administrative Closure #218, closed on January 24, 2022)
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