DSSRC Administrative Closure #253

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding earnings claims that were disseminated on social media by the Company’s salesforce members. All of the posts at issue were 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 typical salesforce member will receive significant income from the Company’s business opportunity including financial freedom, time freedom, passive income, and/or residual income.

The Company responded immediately to DSSRC’s inquiry. The Company promptly contacted the individuals responsible for the posts and was successful in effectuating the discontinuance of all 19 posts within 48 hours. DSSRC determined that the Company’s actions were necessary and appropriate. As noted in section 6(A) of the Earnings Claim Guidance for the Direct Selling Industry, some words or phrases carry a particularly high risk of being misleading to consumers when communicated in a general context. Such words and phrases include but are not limited to “financial freedom,” and “time freedom.” 

Based upon the Company’s genuine, good-faith efforts to address DSSRC’s concerns, DSSRC administratively closed this inquiry.

(Administrative Closure #253, closed on 10/25/22)
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