DSSRC Administrative Closure #240
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 originated from four social media posts disseminated on Facebook. DSSRC contacted the Company and expressed concern that these posts communicated statements that could be reasonably interpreted by consumers as meaning that they can expect to earn significant earnings from the Company’s business opportunity.
Specifically, three of the posts communicated that the Company’s business opportunity provides unlimited income potential. DSSRC was also concerned that the remaining post could be reasonably interpreted by consumers as meaning that they can receive free trips while earning income through direct selling the Company’s products.
The Company responded and confirmed it had received DSSRC’s Notice of Inquiry. Thereafter, DSSRC followed up with the Company to inquire on the status of the posts’ removal and brought two additional Facebook posts to the Company’s attention that contained “unlimited earnings potential” and “full time income” claims.
Of the six posts DSSRC identified, four posts that included unlimited income claims, were removed from Facebook. A fifth post was edited to remove the unlimited income claim. The Company committed to DSSRC that it would continue its efforts to contact the salesforce member responsible for the remaining post, which referenced free trips to consumers for participating in the business opportunity in an unqualified context
DSSRC determined that the Company adequately addressed DSSRC’s concerns in the inquiry by removing or significantly modifying five of the six posts and continuing its efforts to address the remaining post. Based upon these actions, the inquiry was administratively closed.
(Administrative Closure #240, closed on June 9, 2022)
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