DSSRC Administrative Closure #91

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding three Facebook posts disseminated by the company’s salesforce members. The subject claims and social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. DSSRC expressed concern regarding the earnings claims that were communicated by the posts which DSSRC determined conveyed unsupported expectations concerning the amount of income that could be earned through the Company’s business opportunity, particularly during this current health-related pandemic. 

More specifically, the first Facebook post included claims that individuals could earn extra income during the coronavirus. The second Facebook post contained a claim that also made reference to the coronavirus and suggested that individuals could take control of their finances by networking with the company during a time when the economy is changing. Lastly, the third Facebook post stated that during this time when businesses are struggling, individuals could earn significant income as a Company salesforce member and also referenced several Company promotions since the pandemic. 

In response to the inquiry, the Company took prompt action to address the claims and removed all three of the claims immediately. As a result of the prompt actions taken by the Company, DSSRC administratively closed the inquiry pursuant to section 2(II)(6) of the DSSRC Procedures. 

(closed on 10/21/20)