DSSRC Administrative Closure #337

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company that sells essential oils and nutritional products. The inquiry involved six earnings claims disseminated on the company website and on the Vimeo video platform which included, among other representations, references to having “a successful, full-time career,” “financial freedom” earning “significant income” “the only source of income,” and “full time” income. The video in question referenced weekly checks of “$3,700” “$6,000” and “$10,000” as well as car incentive bonuses.  DSSRC determined that the claims at issue conveyed messages suggesting that potential salesforce members could achieve significant and career-level 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 stated that prior to its receipt of the DSSRC inquiry it had established robust internal measures to ensure compliance with regulatory standards including continuous monitoring of social media and online content to ensure that its distributor’s communications and marketing materials are compliant with current regulatory standards and the implemented internal processes requiring a thorough review of all materials before they are publicly disseminated. 

The Company noted that the claims in question were over a decade old, with some materials dating back nearly two decades and, since that time, it has not communicated such information or claims to the marketplace. 

DSSRC confirmed that all of the website claims have been removed and noted that the Company website has been completely redesigned.

With respect to the Vimeo video in question, the Company informed DSSRC that the video originated in Australia from an individual with no association to the Company. Nevertheless, the Company provided documentation to DSSRC evidencing its attempts to contact the individual along with correspondence sent to Vimeo to alert the platform of the unauthorized claims. DSSRC determined that actions taken by the Company to address the concerns in this inquiry were necessary and appropriate.

Based upon the Company’s actions to remove the claims at issue from its website and its good faith efforts to remove the video in question, DSSRC administratively closed its inquiry.

(Administrative Closure #337 closed on 10/11/24)

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