DSSRC Administrative Closure #257
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct-selling company (“Company”) that markets travel-related products regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members as well as an earnings claim made in the Company’s compensation plan on the Company’s website. The claims which were disseminated by Company salesforce members were identified pursuant to DSSRC’s ongoing monitoring process.
DSSRC determined that the social media posts communicated the message that by participating in the Company’s business opportunity, salesforce members could obtain “financial freedom,” earn “full time” or substantial income,” and/or earn “residual or passive” income.
In its response to DSSRC, the Company demonstrated that it was able to contact the salesforce members that disseminated the social media posts and have such posts removed from circulation. The Company informed DSSRC that it instructed such salesforce members to remove any other posts containing earnings claims and to refrain from making any similar posts in the future.
In addition, the Company removed a claim from its website that touted the ability of Company salesforce members to earn passive income.
The Company also expressed a commitment to increasing the Company’s efforts to educate its salesforce members and ensure ongoing compliance with its salesforce team. The Company also informed DSSRC that it was actively pursuing technology solutions that will enable it to detect problematic social media posts and claims and take appropriate action when necessary.
Based on the foregoing actions and commitments by the Company, DSSRC administratively closed this inquiry
(Administrative Closure #257, closed on 11/22/22)
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