DSSRC Administrative Closure #303

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that markets dietary supplements and other personal care products regarding certain claims that appeared on social media platforms including Facebook, LinkedIn, YouTube and TikTok. The claims identified by DSSRC in the inquiry consisted of five earnings claims and two product claims. With respect to the earnings claims, 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, a free trip, and financial freedom. DSSRC was also concerned that the product claims conveyed the message that the Company’s products could prevent or treat health-related conditions including diarrhea, eczema and Covid.

The Company promptly responded to DSSRC’s inquiry and was able to have all but two of the social media posts at issue removed from the platforms on which the claims were disseminated.

With respect to one of the two remaining social media posts, the Company informed DSSRC that a video posted on TikTok was posted by an individual that the Company could not identify as a Company salesforce member. Nonetheless, the Company contacted TikTok to request removal of the video and, ultimately, the video was removed by the platform.

With respect to the other remaining post, the Company demonstrated to DSSRC that it exercised a bona fide good faith effort to have the post removed including by reporting the post to Facebook and requesting that it be removed from the platform.

In response to the Company’s prompt and good faith efforts to facilitate removal of all of the social media posts identified in this inquiry, DSSRC administratively closed this inquiry.

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