DSSRC Administrative Closure #254
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 were disseminated on Facebook, 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 typical salesforce member can generally expect to earn significant, full-time income from the Company’s business opportunity and will also receive free rewards including jewelry and luxury vacations.
The Company promptly responded to the self-regulatory inquiry and took remedial action to address DSSRC’s concerns including the attempted removal and/or modification of the ten posts brought to its attention. To date, all but one of the posts that were identified by DSSRC have been removed as a result of the Company’s compliance efforts. With respect to the remaining post, the Company committed to DSSRC that it is prepared to terminate its relationship with the salesforce member responsible for the post if she continues to be unresponsive to the Company’s request to remove the post. The Company further informed DSSRC that it is in the process of implementing a third-party social media and Internet monitoring software solution to monitor claims communicated by its salesforce members.
DSSRC determined that the Company has made a genuine, good faith effort to address its concerns in this inquiry. DSSRC recommended to the Company, should it be unable to facilitate the removal of the remaining social media post, that it should contact the social media platform to advise them of the continued public accessibility of the unauthorized post that inaccurately depicts the earnings opportunity offered by the Company. Based on the Company’s actions, the matter was administratively closed and DSSRC will continue tracking the Company’s actions to remove the remaining social media post.
(Administrative Closure #254, closed on 10/25/22)
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