DSSRC Administrative Closure #326

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") regarding nine earnings claims disseminated on Facebook and YouTube. DSSRC was concerned that the claims conveyed messages suggesting that potential Company salesforce members could achieve significant income, replacement income and/or “financial freedom” through participation in the Company's business opportunity. This inquiry was initiated by DSSRC as part of its independent monitoring of product and income claims in the direct selling channel.

The Company promptly responded to the inquiry and informed DSSRC that several of the social media posts identified by DSSRC were in the process of being addressed before the self-regulatory was commenced through the Company’s ongoing monitoring of its salesforce and its use of a third-party monitoring service. By the time the Company provided DSSRC with its initial response to DSSRC’s Notice of Inquiry, the Company was successful in removing eight of the nine social media posts.

The one post that remains publicly available was disseminated by a former salesforce member of the Company. The Company made two written requests to the former salesforce member requesting that the post be removed but the salesforce member was not responsive. 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 good faith efforts to adequately address DSSRC’s concerns, the inquiry was administratively closed.

(Administrative Closure #326 closed on 09/05/24)
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