DSSRC Administrative Closure #302
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that markets travel products regarding 15 earnings claims that were disseminated on social media by members of the Company's salesforce. DSSRC expressed its concern to the Company about the social media posts conveying claims regarding the potential income that a typical salesforce member could earn from the Company's business opportunity, including the possibility of earning substantial income, significant bonuses, unlimited income, and financial freedom.
Upon receipt of DSSRC’s inquiry, the Company promptly responded. Its outside counsel informed DSSRC that the Company had undertaken corrective action to address the identified social media posts which the Company acknowledged should not have been disseminated. The Company was successful in removing several of the social media posts identified by DSSRC but other posts remained publicly accessible. In response, the Company suspended the salesforce members who were responsible for the remaining posts and informed them that they must remove the posts or face termination. In response, the salesforce members removed the social media posts and all posts identified by DSSRC in this inquiry were ultimately removed from social media.
In response to the Company’s prompt efforts to facilitate removal of all of the claims identified in this inquiry, DSSRC administratively closed this inquiry.
(Administrative Closure #302, closed on 12/14/23)
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