DSSRC Administrative Closure #318
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that sells a variety of nutritional supplements about 14 earnings claims disseminated on Facebook and Twitter. DSSRC expressed concern that the earnings claims conveyed, among other things, that typical Company salesforce members can earn significant income with minimal effort, be free of debt, earn a full-time income, and receive free cars as a result of participating in the Company’s business opportunity.
The Company promptly responded to DSSRC’s inquiry by taking corrective measures to rectify the identified social media posts. More specifically, the Company was successful in having 10 of the posts identified by DSSRC removed from social media.
With respect to the remaining posts, the Company demonstrated to DSSRC that it made a bona fide good faith effort to have the posts removed including by suspending active salesforce members, reporting the claims to the social media platform where the claims were made and requesting that they be removed, and publicly commenting on the post to state that the claim was not authorized by the Company.
The inquiry was administratively closed based on the Company's demonstrated good faith actions in addressing the concerns brought to its attention.
(Administrative Closure #318, closed on 5/10/24)
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