DSSRC Administrative Closure #324

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") regarding eight earnings claims disseminated on social media. DSSRC was concerned that the claims conveyed messages suggesting that potential independent contractors could achieve significant (e.g., “$130,000 in 6 months”) and/or unlimited income through participation in the Company's business opportunity. This inquiry was initiated by DSSRC as part of its continuous independent monitoring of product and income claims in the direct selling industry and following an investigation conducted earlier this year by a consumer advocacy group into earnings claims made by direct selling companies.

The Company promptly responded to the inquiry. In its response, the Company informed DSSRC that immediately after receipt of the DSSRC Notice of Inquiry, it contacted several of the individuals responsible for disseminating the claims at issue and, as a result of its efforts, six of the posts were deleted. With respect to the two posts that remain online, the Company informed DSSRC that the individuals responsible for disseminating the posts are no longer affiliated with the Company and that, while the Company made every effort to contact them, the contact information in the Company’s possession appears to no longer be valid. Both individuals were previously associated with a Company distributor located in the Philippines.

Accordingly, DSSRC recommended that the Company contact the platform directly to request that the content be removed. DSSRC also recommended that the Company consider posting a comment to the social media post stating that the claims contained in the post were not authorized by the Company.

Based upon the Company’s genuine, good faith efforts to adequately address DSSRC’s concerns, the inquiry was administratively closed.

Administrative Closure #324 closed on 09/05/24)
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