DSSRC Administrative Closure #274

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets beauty products regarding seven 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 social media posts communicated to consumers that prospective salesforce members can earn substantial income through participation in the Company’s business opportunity. More specifically, the posts included, but were not limited to, representations that prospective Company salesforce members can earn a full-time income and control how much income they want earn..

Shortly after commencement of the inquiry, the Company promptly responded to DSSRC and removed all seven social media posts, an action which DSSRC determined was necessary and appropriate.

Section 6 of the DSSRC’s Guidance on Earnings Claims for the Direct Selling Industry notes that “… some words and phrases are prohibited when made to a general audience of prospective or current salesforce members. Such words and phrases include statements such as “residual income”, “unlimited income”, “full-time income”, “replacement income” “quit your job” or any substantially similar statements or representations.

Accordingly, based upon the good faith actions taken by the Company’s to remove the seven earnings claims at issue DSSRC administratively closed this inquiry.

(Administrative Closure #274, closed on 5/17/23) 

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