DSSRC Administrative Closure #55

DSSRC contacted a direct selling company about two social media posts disseminated by its salesforce members. The subject social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. Specifically, DSSRC expressed concern that the two social media posts conveyed unsubstantiated earnings claims that individuals could either take financial advantage of the current COVID-19 pandemic or individuals could make up lost income that is due to the COVID-19 pandemic.

The first claim alleged that individuals could earn a minimum level of additional income during the COVID-19 induced lockdown. The post specifically mentioned that individuals could earn a range of up to $10,000 per month during the lockdown. The second post in question claims that the Company is a direct selling sales leader and that new members can join the team. The post ends with a hashtag referring to COVID-19.

In response to DSSRC’s inquiry, the Company was appreciative of DSSRC bringing these issues to their attention. The Company informed DSSRC that they have identified both of the distributors as being based in foreign countries outside of the U.S. The Company contacted the distributors and successfully had the posts removed. In addition, the Company educated the distributors on the policies and suspended their accounts.

DSSRC expressed its appreciation to the Company for its efforts in removing the post. As a result of the prompt actions taken by the Company, DSSRC administratively closed the inquiry.

(closed 7/14/2020)