DSSRC Administrative Closure #332

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that sells a variety of products including meal solutions, baking products and cookware regarding seven Facebook posts that included representations stating that potential salesforce members can earn meaningful income, replace full time income and/or have unlimited income potential.

Upon initiating the inquiry, the Company promptly took corrective action to address the identified social media posts, successfully removing five of the posts brought to its attention by DSSRC and significantly modifying the remaining two posts. DSSRC concluded that the Company's actions were necessary and appropriate.

More specifically, Section 6 of DSSRC's Guidance on Earnings Claims for the Direct Selling Industry states that While DSSRC will evaluate any claim based upon the context in which the claim appears and the potential net impression of such claim to the audience, 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.

In conclusion, DSSRC found that the Company sufficiently addressed the concerns in this inquiry by promptly removing five of the identified posts and by taking necessary steps to modify the remaining posts and removing the objectionable earnings claims. Accordingly, DSSRC administratively closed its inquiry.

(Administrative Closure #332, closed on 09/11/24)
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