DSSRC Administrative Closure #268

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding eight product claims and four earning claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook and YouTube.

DSSRC contacted the Company and expressed concern that the posts included representations that prospective salesforce members can achieve “financial freedom” and/or earn substantial income through participation of the Company’s business opportunity. In addition, several of the posts communicated the message that the Company’s products could treat a series of health-related conditions by, for example, providing a boost to the immune system which could prevent illnesses.

The Company acknowledged that the product and earnings claim at issue were not appropriate and did not attempt to provide evidence to support the claims. Shortly after commencement of the inquiry, the Company began contacting the salesforce members responsible for the posts in question to have the claims removed. The Company was successful in removing or correcting eleven out of the twelve posts that were identified by DSSRC. The Company informed DSSRC that it will use its best efforts to ensure that the Company’s distributors refrain from communicating similar claims in the future.

With respect to the one remaining post, the Company demonstrated to DSSRC that it made a good-faith effort to have the post removed. The Company stated that it contacted the salesforce member and requested the post be taken down. After the individual failed to respond to the initial request, the Company contacted Facebook directly and requested that the post be removed. DSSRC confirmed that the salesforce member responsible for the post is no longer affiliated with the Company.

DSSRC determined that the actions taken by the company were necessary and appropriate and that the Company demonstrated that it made a bona fide good faith attempt to address DSSRC’s concerns. Given the Company’s bona fide efforts to address DSSRC’s concerns, the inquiry was administratively closed.

(Administrative Closure #268, closed on 03/22/23) 
© 2023 BBB National Programs