DSSRC Administrative Closure #251
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims and health-related claims that were disseminated on social media by the Company’s salesforce members. The claims at issue were disseminated on Facebook, Twitter, Instagram and YouTube. DSSRC contacted the Company and expressed concern that these social media posts could be reasonably interpreted by consumers as meaning that the Company’s salesforce members typically receive free vacations and an extra source of income through participation in the business opportunity. Moreover, DSSRC determined that those social media posts communicating product performance claims could be reasonably interpreted by consumers as meaning that the products could treat a number of health-related conditions including, but not limited to, weight loss, chronic infections, type 2 diabetes, skin disorders, and inflammation.
The Company promptly responded to DSSRC and took remedial action to address DSSRC’s concerns including removing the non-compliant content, terminating the employment of two distribution partners involved for not responding to the removal request, as well as meeting with their Regional VP’s and leaders throughout the Company, reminding them of the importance of on-boarding training and approved content. Initially, the Company was able to resolve all but three claims. After following up with the salesforce members that disseminated the remaining three social media posts, all but one have been removed. Such efforts by the Company included removing several international posts, two of which were from South Africa (where the majority of the claims originated) and one from the Philippines. The Company also provided information to DSSRC indicating that it was attempting to work with the platform to remove the one remaining social media post at issue.
It was determined that the Company has made a genuine, good faith effort to address DSSRC’s concerns and based on the Company’s actions, the matter was administratively closed.
(Administrative Closure #251, closed on September 8, 2022)
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