DSSRC Administrative Closure #249

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct-selling company (“Company”) that sells wellness products regarding certain product and earnings claims that were disseminated on social media by the Company’s salesforce members. The posts were identified as part of DSSRC’s ongoing monitoring process, which found the eight posts on Facebook and YouTube.

The posts communicating earnings claims that formed the basis of the DSSRC inquiry included representations stating that the business opportunity offered “financial freedom” and “time freedom.” Another post suggested that participants could earn a “full-time salary” and “quit their day job.” In addition, several posts included product performance claims, one which claimed that that the Company’s products offer protection against COVID-19 and several other posts had representations stating that Company products could “boost the immune system.” The one YouTube video before DSSRC communicated the claim that the Company’s products could treat anxiety and stress.

The Company promptly responded to DSSRC’s inquiry and immediately worked to have the posts removed. The Company informed DSSRC noted that five of the eight posts originated from salesforce members located outside of the United States. Within one week, six of the Facebook posts were completely removed and one Facebook post was modified to address DSSRC’s concerns.

With respect to the one remaining YouTube post, the Company indicated to DSSRC that the video was posted from a salesforce member located in Europe and that the salesforce member responsible for the post was unreceptive to the Company’s take-down requests and has since been terminated. The Company also submitted a request to YouTube pursuant to the Digital Millennium Copyright Act to have the post removed. As the Company did not attempt to substantiate the claims and provided no evidence to DSSRC that would support the performance or earnings claims at issue, DSSRC agreed that the Company’s actions were necessary and appropriate.

DSSRC greatly appreciated the prompt, good faith actions taken by the Company to address the concerns at issue in this inquiry. Based upon these efforts taken to take down the Facebook posts and have the stress and anxiety claims communicated in the YouTube post removed, DSSRC administratively closed this inquiry.

(Administrative Closure #249, closed on August 1, 2022)
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