DSSRC Administrative Closure #327

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that provides professional and personalized life insurance products regarding one video on YouTube and a claim on the Company website that communicated an unlimited earnings claim.

Shortly after its receipt of the DSSRC Notice of inquiry, the Company contacted DSSRC and indicated that that the 2020 YouTube video had been part of an old marketing campaign and facilitated the removal of the video. In addition, the Company informed DSSRC that the unlimited income claim was removed from the Company website.

DSSRC was greatly appreciative of the Company’s prompt and genuine actions and determined that the Company efforts were necessary and appropriate. Pursuant to the DSSRC Guidance on Earnings Claim for the Direct Selling Industry (“the DSSRC Guidance”), DSSRC cautions direct selling companies and their independent salesforce members against the use of any words or images communicating that a direct selling business opportunity will result in earnings beyond what can be generally expected by the typical salesforce member in the depicted circumstances. Moreover, section 6(c) of the DSSRC Guidance, notes that “… some words and phrases are prohibited when made to a general audience of prospective or current salesforce members. Such words and phrases include statements such as ‘quit your job,’ ‘be set for life,’ ‘make more money than you ever have imagined or thought possible,’ ‘unlimited income,’ ‘full-time income,’ ‘replacement income,’ ‘career-level income,’ or any substantially similar statements or representations.”

DSSRC administratively closed this inquiry based upon the Company’s expeditions actions to address DSSRC’s concerns.

(Administrative Closure #327, closed on 09/05/24)
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