DSSRC Administrative Closure #252
The Direct Selling Self-Regulatory Council (DSSRC) opened an inquiry with a direct selling company (the “Company”) regarding certain earnings claims disseminated on social media by the Company’s salesforce members. The claims at issue were all disseminated on Facebook, DSSRC contacted the Company and expressed concern that these social media posts could be reasonably interpreted by consumers as meaning that the Company’s presents an “unlimited income opportunity” and that salesforce members can receive financial freedom from participating in the Company’s business opportunity.
The Company immediately responded to DSSRC and noted that most of the claims were disseminated prior to 2018 and many salesforce members responsible for the posts were no longer active with the Company. The Company provided information to DSSRC indicating that it attempted to contact each of the salesforce members who disseminated the posts and was successful in removing eleven posts. Of the four remaining posts, one was from 2013 and the rest from 2017. The Company made several unsuccessful attempts to contact those four inactive salesforce members. The Company informed DSSRC that it is in the process of contacting Facebook to pursue remedies with the platform to effectuate the removal of the four remaining posts at issue.
Based upon the good faith efforts exercised by the Company to address DSSRC’s concerns, DSSRC administratively closed the inquiry and indicated to the Company that it will continue to check on the status of the four remaining posts and monitor social media for any additional earning claims that have been disseminated by the Company’s salesforce members.
(Administrative Closure #252 closed on September 8, 2022)
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