DSSRC Administrative Closure #221

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 five Facebook posts and two YouTube videos. These claims included unqualified earnings claims, such as, but not limited to, financial freedom and unlimited income. DSSRC expressed its concern to the Company that these 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.

Following its receipt of DSSRC’s notice of inquiry, the company informed DSSRC that the majority of the posts were removed. The company stated that it was able to remove multiple foreign posts by working extensively with its foreign affiliates and outside counsel. However, it has not yet been successful in removing the YouTube videos as the company was unable to identify the posters.

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.

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