DSSRC Administrative Closure #335

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that markets video communications services regarding 8 earnings claims disseminated on social media. DSSRC was concerned that the claims conveyed messages suggesting that potential salesforce members of the Company could achieve significant income, financial freedom, and/or earn or be able to afford cars and luxury items 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 demonstrated to DSSRC that all of the earnings claims at issue in this inquiry had been removed. While the Company maintained that certain of the posts were simply truthful statements as to the Company’s business opportunity (e.g. how much a salesforce member could earn for a certain number of sales) the Company nonetheless informed DSSRC that it contacted the individuals who made the post asking that they be removed and that such posts were removed.

DSSRC appreciated the Company prompt, good faith efforts to adequately address DSSRC’s concerns in this inquiry. Accordingly, the inquiry was administratively closed.

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