DSSRC Administrative Closure #288

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding eight claims disseminated on social media by Company salesforce members. The claims at issue consisted of four health-related product claims and four earnings claims and were disseminated on Facebook and Pinterest. DSSRC contacted the Company and expressed concern that the posts included unsubstantiated health-related product claims and representations that prospective salesforce members can achieve “financial freedom” and/or earn substantial income through participation in the Company’s business opportunity.

The Company did not attempt to provide evidence to support the claims identified by DSSRC. Rather, the Company promptly effectuated removal of six of the eight claims. After further correspondence with DSSRC, the Company was able to effectuate the removal of the two remaining claims. In addition to the removal of the claims identified by DSSRC, the Company informed DSSRC that it will actively work with any salesforce member that it has determined is in breach of the Company’s policies and procedures. The Company further informed DSSRC that when a salesforce member is unresponsive, or no longer with the Company, or unable to make changes to their social media posts from past years, then the Company will work with the social media platform to request that such social media posts are removed.

Based on the foregoing. DSSRC determined that the Company demonstrated that it made a bona fide, good faith attempt to address DSSRC’s concerns by removing the social media posts at issue and making a good faith effort to have the remining posts taken down. Accordingly, this inquiry was administratively closed.

(Administrative Closure #288, closed on 8/23/23)
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