DSSRC Administrative Closure #231
The Direct Selling Self-Regulatory Council (DSSRC) initiated an inquiry into a direct selling company (“Company”) regarding earnings claims disseminated by salesforce members of the Company on seven Facebook posts, one Twitter post and on the Company website. DSSRC expressed its concerns that the claims at issue communicated the messages that salesforce members can achieve financial freedom, take free trips and have unlimited success and free incentive rewards when participating in the Company’s business opportunity.
The Company immediately responded to DSSRC’s inquiry. The Company contacted all of the individuals responsible for the claims to request that the representations be removed. Accordingly, the eight social media posts were disabled and the claims were removed from the Company website.
Additionally, the Company informed DSSRC that it has increased its monitoring of social media platforms to ensure that posts made by its salesforce members comply with Company policies which includes a prohibition on claims that salesforce members can achieve financial freedom through participation in the Company’s business opportunity.
Based upon the prompt, good faith actions to remove the posts at issue and address DSSRC’s concerns regarding the website claims, the self-regulatory inquiry was administrative closed.
(Administrative Closure #231, closed on April 4, 2022)
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