DSSRC Administrative Closure #259

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that sells women’s beauty products regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue originated from eleven social media posts disseminated on Facebook. The eleven Facebook posts included claims that salesforce members can generally expect to achieve financial freedom by participating in the business opportunity, “unlimited income potential,” as well as the prospect of free vacations.

Shortly after being contacted by DSSRC, the Company contacted each of the salesforce members responsible for the posts at issue in the inquiry and effectuated the removal of the posts. The Company had removed 10 of the 11 of the posts and also edited the problematic sections of their posts. The Company further stated that the remaining post is no longer a representative for their company and the representative is not responding to their requests, however they stated that they will continue to try to reach out to them to have the post removed.

DSSRC administratively closed its inquiry and expressed its appreciation to the Company for its good faith efforts to address the concerns in the inquiry and for its commitment to provide further education to salesforce members regarding proper claim dissemination. DSSRC will continue its dialogue with the Company to reconcile the one remaining post.

(Administrative Closure #259, closed on 12/02/22)
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