DSSRC Administrative Closure #306

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") regarding five social media posts that communicated earnings claims and three posts that communicated health-related product claims. DSSRC expressed concern that the earnings claims conveyed that a typical salesforce member could achieve “financial freedom” and that typical Company salesforce members could earn significant income from the Company’s business opportunity. The health-related claims included representations that the Company’s products could result in significant weight loss for users. The claims were disseminated on Facebook and TikTok.

The Company took prompt action to address the social media posts identified by DSSRC. Specifically, within 10 days of receipt of DSSRC’s Notice of Inquiry, the Company was able to effectuate the removal of six of the eight social media posts identified in this inquiry. With respect to the two remaining social media posts, the Company informed DSSRC that one of the posts was disseminated by an individual that was not associated with the Company and the other was disseminated by an individual that is deceased. Nonetheless, the Company demonstrated to DSSRC that it used its best efforts to effectuate removal of the posts including by posting directly on the social media platform that the claim was unauthorized, reporting the claim to the social media platform, and contacting the estate of the deceased individual.

Based on the foregoing, DSSRC found that the Company made a bona fide, good-faith effort to address DSSRC’s concerns and administratively closed this inquiry.

(Administrative Closure #306, closed on 02/01/24)
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