DSSRC Administrative Closure #256

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding nine earnings claims that were disseminated on social media by the Company’s salesforce members on Facebook and the Company website. 

DSSRC contacted the Company and expressed concern that the posts that formed the basis of the inquiry included unqualified claims that the Company’s business opportunity offered “financial freedom,” and a chance to earn substantial income, including the replacement of their full-time income. For example, one claim suggested participants could earn “up to $54,000.” Section 6 of DSSRC’s Guidance on Earnings notes that such language is prohibited when made to a general audience of prospective or current salesforce members, as they carry a high risk of being misleading.

In addition, this section of the Earnings Claims Guidance notes that 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.” 

Shortly after commencing the inquiry, the Company promptly responded to DSSRC and demonstrated a good faith effort to address DSSRC’s concerns including the removal of all nine of the posts at issue. 

Based upon the Company’s bonafide efforts to address DSSRC’s concerns, DSSRC administratively closed this inquiry.

(Administrative Closure #256, closed on 11/21/22)