DSSRC Case Decisions and Administratively Resolved Inquiry Summaries
Case Decisions
Case #156-2024: Administrative Closure – Cabi, LLC
Cabi, LLC ("Company") is a multi-level direct selling company, headquartered in Carson, CA and founded in 2002, that sells clothing and personal accessories.
Case #155-2024: Administrative Closure – Touchstone Crystal, Inc.
Touchstone Crystal, Inc. (“Touchstone Crystal” or the "Company") is a multi-level direct selling company that sells jewelry and accessories.
Case #154-2024: Administrative Closure – Unicity International
Unicity International ("Company") is a multi-level direct selling company headquartered in Provo, UT and founded in 1986 that sells nutritional supplements and self-care products.
Case #153-2024: Monitoring Inquiry – Trades of Hope LLC
Trades of Hope LLC (“Trades of Hope” or the “Company”) is a multi-level direct selling company that specializes in the sale of an assortment of goods including jewelry, personal accessories, home decor, and coffee. According to its website, Trades of Hope purchases its products from local artisans around the globe, including from Vietnam, Thailand, Cambodia, Uganda, Kenya, Peru,...
Case #152-2024: Administrative Closure – ibuumerang, Ltd
ibuumerang, Ltd (“ibuumerang” or the “Company”) is a direct selling company that offers discount travel for its members. The Company is headquartered in Houston, Texas and was founded in 2019.
Case #151-2024: Administrative Closure – Ruby Ribbon
Ruby Ribbon ("Company") is a multi-level direct selling company located in Burlingame, CA that was founded in 2011 and sells shapewear, athleisure, and intimates.
Case #150-2024: Administrative Closure – Vida Divina Worldwide, Inc.
Vida Divina Worldwide, Inc. (“Vida Divina” or the “Company”) is a direct selling company that markets health and wellness products, including beverages and nutritional supplements. The Company is headquartered in Ontario, Canada and was founded in 2016.
Case #149-2024: Administrative Closure – Innov8tive Nutrition
Innov8tive Nutrition ("Company") is a multi-level direct selling company that sells nutritional supplements and self-care products.
Case #148-2024: Monitoring Inquiry – LiveGood, Inc. USA
LiveGood Inc. USA (“LiveGood” or the “Company”) is a direct selling company that sells a variety of multivitamins and supplements with a focus on sleep aids, inflammation management, muscle recovery and weight management. The Company is headquartered in Jupiter, Florida and was founded in 2022.
Case #147-2024: Monitoring Inquiry – PaperPie f/k/a Usborne Books & More
PaperPie f/k/a Usborne Books & More (“PaperPie” or the “Company”) is a direct selling company that was founded in 1989 and based in Tulsa, Oklahoma.1 The Company distributes children’s books and educational products.
Case #146-2023: Administrative Closure – Enzacta USA
Enzacta USA (“Enzacta or the “Company”) is a direct selling company that sells nutritional and wellness products. The Company is headquartered in Cheyenne, Wyoming and was founded in 2003.
Case #145-2023: Administrative Closure – Tranont
Tranont (or the “Company”) is a multi-level direct selling company based in Utah. Founded in 2013, the Company sells health and wellness products, including a line of CBD products.
Case #144-2023: NGO Inquiry – Modere USA, Inc.
Modere USA, Inc. (“Modere” or the “Company”) is a direct selling company founded in 2012 and based in Newport Beach, California that markets health, beauty, and wellness products.
Case #143-2023: Administrative Closure – Traveling Vineyards
Traveling Vineyards (or the “Company”) was a direct selling company based in Ipswich, Massachusetts. The Company was established in 2010 and sells boutique wines.
Case #142-2023: Administrative Closure – Globallee, Inc.
Globallee, Inc. (“Globallee” or the “Company”) is a direct selling company located in Irving, Texas, founded in 2019. The Company sells various health and wellness supplements and has offices in Japan, Canada, Australia, and the United States.
Case #141-2023: Administrative Closure – Red Aspen, LLC
Red Aspen, LLC, (“Red Aspen” or the “Company”) is a direct selling company that markets beauty and cosmetic products. The Company is headquartered in Meridian, Idaho and was founded in 2017.
Case #140-2023: Administrative Closure – Younique, LLC
Younique, LLC (or the “Company”) is a direct-selling company based in Utah that sells beauty products.
Case #139-2023: NGO Inquiry – Elomir, Inc.
Elomir, Inc. (“Elomir” or the “Company”) sells nutritional supplements including its flagship product, Axis Klärity. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring process, which monitors advertising and marketing claims disseminated by direct selling companies and their salesforce members.
Case #138-2023: Monitoring Inquiry – Thrive Life, LLC
Thrive Life, LLC is a direct selling company that manufactures and markets freeze-dried and rehydrated foods. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring process, which monitors advertising and marketing claims disseminated by direct selling companies and their salesforce members.
Case #137-2023: Administrative Closure – Herbalife International of America, Inc.
Herbalife International of America, Inc., (“Herbalife” or the “Company”) is a direct selling company that sells nutritional and wellness products. The Company is headquartered in Los Angeles, California and was founded in 1980.
Case #136-2023: Administrative Closure – Grace & Heart
Grace & Heart (or the “Company”) was a direct selling company based in California. The Company was established in 2015 and sold fashion jewelry.
Case #135-2023: Administrative Closure – Global Domains International
Global Domains International is a direct-selling company based in California that sells domain names via an affiliate network. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring process, which monitors advertising and marketing claims disseminated by direct selling companies and their salesforce members.
Case #134-2023: Compliance Inquiry – B-Epic Worldwide, LLC
B-Epic Worldwide LLC is a Utah-based multi-level marketing company that sells health and wellness products. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising in the direct selling marketplace.
Case #133-2023: Government Referral – Sweet Minerals, LLC
Sweet Minerals, LLC (“Sweet Minerals” or the “Company”) is a direct selling company based in Pasadena, Maryland. The company was founded in 2011 and markets makeup, personal care, skin care, and cosmetic products.
Case #132-2023: Administrative Closure – jBloom Designs
jBloom Designs (“jBloom” or the “Company”) is a multi-level marketing company that sells custom jewelry. The Company is headquartered in St. Peters, MO and founded in 2013.
Case #131-2023: Compliance Inquiry – Seint Beauty
Case #130-2023: Monitoring Inquiry – Healy World
Healy World, Inc. (“Healy World” or the “Company”) is a direct selling company based in Mainz, Germany with its domestic headquarters in Orlando, Florida.
Case #129-2023: Monitoring Inquiry – Zinzino, LLC
Zinzino, LLC (“Zinzino” or the “Company”) is a direct selling company founded in 2005 that offers nutritional supplements to consumers. The Company is headquartered in Frölunda, Sweden and has a subsidiary in Jupiter, Florida.
Case #128-2023: Compliance Report – The Juice Plus+ Company, LLC
The Juice Plus+ Company, LLC (“JuicePlus” or the “Company”) is a direct selling company founded in 1970 and based in Collierville, Tennessee. The Company markets fruit and vegetable juice extract supplements.
Case #127-2023: Administrative Closure – Traci Lynn Jewelry
Traci Lynn Jewelry (or the “Company”) was a direct selling company based in Florida. The Company was established in 1989 and sold affordable fashion jewelry.
Case #126-2023: Monitoring Inquiry – Zallevo, LLC
Zallevo, LLC (“Zallevo” or the “Company”) is a direct selling company founded in 2020 and based in St. George, Utah. The Company markets health and wellness products focusing on weight loss and anxiety/stress reduction.
Case #125-2023: Monitoring Inquiry – Pink Zebra
Pink Zebra At Home (or the “Company”) is a direct selling company founded in 2011 and based in Sugar Land, Texas. The Company markets home fragrance and décor products including a wide range of items such as scented wax melts, candles, reed diffusers, room sprays, and other related accessories.
Case #124-2023: Government Referral – Tori Belle Cosmetics
Tori Belle Cosmetics (“Tori Belle” or the “Company”) is a direct-selling company founded in 2019 and based in Woodinville, Washington. The Company markets beauty and cosmetic products.
Case #123-2023: Administrative Closure – Seint Beauty
Seint Beauty (“Seint” or the “Company”), formerly Maskcara Beauty, is a multi-level marketing company founded in 2013 and based in St. George, Utah. The Company markets consumer and personal care products with a focus on cosmetics and cosmetic accessories.
Case #122-2023: Government Referral – iCoinPro
iCoinPro (or the “Company”) is a multi-level direct selling company that markets education, information, and training for cryptocurrency services. The Company was founded in 2017 and is located in Carson City, Nevada.
Case #120-2023: Monitoring Inquiry – Pure Haven, LLC
Pure Haven, LLC (“Pure Haven” or the “Company”) is a direct-selling company founded in 2009 and based in Rhode Island. The Company markets household products and personal care products to consumers including a line of skin care products.
Case #119-2023: Government Referral – Wayal Health Sciences USA, Inc.
Wayal Health Sciences USA, Inc., (“Wayal Health” or the “Company”) is a multi-level direct selling company founded in 2016. The Company is headquartered in Salt Lake City, Utah and markets health and wellness nutritional supplements.
Case #118-2023: Administrative Closure – Daxen, Inc.
Unicity International, Inc. (“Unicity” or the “Company”) is a multi-level marketing company headquartered in Orem, Utah and founded in 1986. The Company markets nutritional and personal care products and operates in approximately 30 countries, including the United States, Australia, Brazil, Brunei Darussalam, Canada, Colombia, Hong Kong, Indonesia, Japan, Malaysia, New Zealand,...
Case #117-2023: Administrative Closure – Unicity International, Inc.
Unicity International, Inc. (“Unicity” or the “Company”) is a multi-level marketing company headquartered in Orem, Utah and founded in 1986. The Company markets nutritional and personal care products and operates in approximately 30 countries, including the United States, Australia, Brazil, Brunei Darussalam, Canada, Colombia, Hong Kong, Indonesia, Japan, Malaysia, New...
Case #116-2023: Administrative Closure – GelMoment, Inc.
GelMoment, Inc. (“GelMoment” or the “Company”) is a direct-selling company founded in 2014 and based in Montreal, Canada. The Company markets gel nail polish and other beauty products.
Case #115-2023: NGO Inquiry – The Juice Plus+ Company, LLC
The Juice Plus+ Company, LLC is a direct selling company founded in 1970 and based in Collierville, Tennessee. The Company markets fruit and vegetable juice extract supplements. An NGO identified to DSSRC certain earnings and product performance claims disseminated by salesforce members and the Company.
Case #114-2023: Administrative Closure – Reliv International, Inc.
Reliv International, Inc. is a direct-selling company founded in 1988, and based in Chesterfield, Missouri. The Company markets proprietary nutritional supplements. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of the direct selling marketplace.
Case #113-2023: Administrative Closure – Vic Beauty, LLC
Vic Beauty, LLC was a direct sales cosmetic and personal care company based in Los Angeles, California. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #112-2023: Compliance Inquiry – Magnetude Jewelry
Magnetude Jewelry (or the “Company”) is a multi-level direct selling company based in Maryland that sells bio-magnetic interchangeable fashion jewelry to consumers. According to the Company’s website, the Company’s independent representatives earn money through commission on product sales or recruiting other salesforce members.
Case #111-2023: Administrative Closure – Shaklee Corporation
Shaklee Corporation (“Shaklee” or the “Company”) is a direct-selling company founded in 1956 and based in Pleasanton, CA. The Company markets natural nutritional supplements, beauty products, and household products.
Case #110-2023: Administrative Closure – Prime My Body
Prime My Body LLC (“Prime My Body” or the “Company”) is a direct-selling company based in Carrollton, Texas. The company was founded in 2013 and sells CBD oils and other nutritional products.
Case #109-2023: Administrative Closure – Direct Cellars
Case #108-2023: Administrative Closure – Save the Day Seasonings
Case #107-2023: Administrative Closure – BeneYOU LLC (a/k/a Avisae)
BeneYOU LLC (a/k/a Avisae) (“BeneYOU” or the “Company”) is a direct selling company headquartered in Lindon, Utah, that acquired the Avisae brand in 2018. The company markets personal care and wellness products.
Case #106-2023: Monitoring Inquiry – Magneceutical Health, LLC
Magneceutical Health, LLC (“Magneceutical Health” or the “Company”) is a company headquartered in Clearwater, FL that markets a medical device called the Magnesphere, which is a magnetic resonance therapy system designed to help reduce the symptoms associated with chronic stress.
Case #105-2023: Monitoring Inquiry – Peach Underneath, Inc.
Peach Underneath, Inc. (“Peach Underneath” or “the Company”) was a multilevel marketing company headquartered in Waltham, Massachusetts that marketed premium, athletic-inspired clothing and intimate apparel.
Case #104-2023: Government Referral – Karatbars International
Karatbars International is a multi-level direct selling company founded in 2011 that markets small gold bars and gift items in gold bullion. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #103-2023: Monitoring Inquiry – Essential Bodywear, LLC
Essential Bodywear, LLC is a direct selling company founded in 2003 and headquartered in Commerce, Michigan. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #102-2023: Compliance Inquiry – Innov8tive Nutrition, Inc.
Innov8tive Nutrition is a direct selling company that was founded in 2016 and is headquartered in Seattle, Washington. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #101-2023: Monitoring Inquiry – NeVetica International, Inc.
NeVetica International, Inc. is a direct selling company headquartered in Louisville, Kentucky and founded in 2016. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #100-2022: Monitoring Inquiry – Youngevity International, Inc.
Youngevity International, Inc. is a direct selling company that sells health, nutrition, and wellness products. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #99-2023: Government Referral – Perfectly Posh, LLC
Perfectly Posh, LLC is a direct selling company based in Salt Lake City, Utah that markets personal care and beauty products. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #98-2022: Monitoring Inquiry – Ruby Ribbon, Inc.
Ruby Ribbon, Inc. is a multi-level marketing company that markets women’s apparel, handbags, and other accessories. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #97-2022: Administrative Closure – Unicity International, Inc.
Unicity International, Inc. is a multi-level marketing company that markets nutritional and personal care products and operates in approximately 30 countries. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #96-2022: Government Referral – ViSalus, Inc.
ViSalus, Inc. is a multilevel marketing company that markets weight management nutritional products, dietary supplements, and energy drinks. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #95-2022: Monitoring Inquiry – PartyLite Worldwide, LLC
PartyLite Worldwide, LLC is a multi-level marketing company that markets candles, home décor, and home fragrance products. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #94-2022: Administrative Closure – Tealightful Treasures, Inc.
Tealightful Treasures, Inc. is a retail company with a direct-to-consumer website that markets several varieties of loose-leaf tea products. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #93-2022: Administrative Closure – Ardyss International, LLC
Ardyss International LLC is a multi-level marketing company that markets reshaping apparel, nutrition, personal care, and home care products.This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #92-2022: Administrative Closure – Sunrider International
Sunrider International is a multi-level marketing company that markets herbal food and beverages, nutritional supplements, and skin care and personal care products.This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #91-2022: Monitoring Inquiry – Kannaway, LLC
Kannaway, LLC is a direct selling company headquartered in Poway, CA that sells CBD and wellness products to consumers. This inquiry was commenced by DSSRC pursuant to its ongoing independent...
Case #90-2022: Monitoring Inquiry – Zilis LLC
Zilis LLC is a multi-level direct-selling company headquartered in Argyle, Texas that sells wellness products to consumers.
Case #89-2022: Monitoring Inquiry – My Lala Leggings, Inc.
My Lala Leggings, Inc. is a multi-level marketing company headquartered in Palmdale, CA that sells women’s clothing, specializing in leggings.
Case #88-2022: Monitoring Inquiry – B-Epic Worldwide, LLC
B-Epic Worldwide, LLC is a multi-level direct-selling company located in Layton, Utah that markets health, detox, and fitness products.
Case #87-2022: Monitoring Inquiry – MWR Life, LLC
MWR Life, LLC is a multi-level direct selling company headquartered in Fort Lauderdale, Florida that offers discounts on travel services such as flights, hotels, resorts, cruises, vacation rentals, car rentals, excursions, theme parks, and trains. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling...
Case #86-2022: Monitoring Inquiry – Visi
Visi is a direct-selling company headquartered in Pleasant Grove, Utah specializing in a variety of health-related products, including protein, essential oils, and extracts. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring process, which monitors advertising and marketing claims made in the direct selling industry.
Case #85-2022: Monitoring Inquiry – Reliv International, Inc.
Reliv International, Inc. is a multilevel direct-selling company located in Chesterfield, Missouri that markets and distributes nutritional supplements and personal care products. This...
Case #84-2022: Monitoring Inquiry – Navan Global
Navan Global was a multilevel marketing company located in Franklin, Tennessee, manufacturing and distributing health and CBD-related products. This inquiry was commenced by DSSRC pursuant to its...
Case #83-2022: Government Referral – Root Wellness LLC, a/k/a Root Brands
Root Wellness LLC is a direct-selling company founded in 2019 and located in Brentwood, Tennessee. The Company markets health and wellness products, most notably its Clean Slate, Restore, and Zero-In products. In February 2021, DSSRC initiated an inquiry regarding the dissemination of health-related claims by Root Wellness and its salesforce members and opened a...
Case #82-2022: Administrative Closure – LurraLife Global
LurraLife Global was a multi-level direct-selling company that marketed health and wellness products, including detoxification tea, to consumers. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #81-2022: Administrative Closure – QuiAri, LLC
QuiAri, LLC is a multi-level direct-selling company in Brandon, Florida, that markets health and wellness products. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring advertising and marketing claims in the direct selling industry.
Case #80-2022: Government Referral – Fifth Avenue Collection, Inc.
Fifth Avenue Collection is a multi-level direct-selling company that sells fashion jewelry products headquartered in Moose Jaw, Saskatchewan. The Direct Selling Self-Regulatory Council (DSSRC) commenced this inquiry pursuant to its ongoing, independent monitoring of advertising and marketing claims in the direct selling industry.
Case #79-2022 – Government Referral – Vyvo, Inc.
Vyvo, Inc. is a multi-level direct selling company that markets a smart watch, DNA and genetics testing, and nutritional supplements. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising in the direct selling marketplace and concerns earnings claims disseminated by the Company and its salesforce members.
Case #78-2022 – Monitoring Inquiry – H20 At Home
H2O At Home is a multilevel marketing company headquartered in King of Prussia, Pennsylvania that offers consumers a line of non-toxic cleaning solutions. This inquiry was commenced by DSSRC...
Case #77-2022 – Compliance Inquiry – Root Wellness LLC
The Direct Selling Self-Regulatory Council (DSSRC) opened a compliance inquiry against Root Wellness after health-related product claims similar to those addressed in a 2021 inquiry appeared in the social media posts of Root Wellness salesforce members. In addition, during its inquiry DSSRC identified more than 30 other related issues.
Case #76-2022 – Monitoring Inquiry – Sanki Global LLC
This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry. Sanki Global LLC is a multi-level direct selling company headquartered in Japan, with U.S. offices located in Henderson, Nevada.
Case #75-2022 – Monitoring Inquiry – Tranont
This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry. Tranont is a multi-level direct selling company based in Utah. Founded in 2013, the Company sells health and wellness products, including a line of CBD products.
Case #74-2022 – Monitoring Inquiry – Opulence Global
Opulence Global is a multi-level direct selling company that sells skincare, personal care, and health & wellness products. This inquiry concerns product and earnings claims disseminated by salesforce members on social media regarding the Fountain of Life product, an antioxidant that includes a Picea Abies extract as one of its primary...
Case #73-2022 – Monitoring Inquiry – Financial Education Services
Financial Education Services is a multi-level direct selling company that markets credit repair services to consumers. This inquiry concerns earnings claims disseminated by company salesforce members on social media.
Case #72-2022 – Monitoring Inquiry – Stella & DOT, LLC
Stella & DOT, LLC is a multi-level direct selling company that sells jewelry, bags, accessories, and women’s clothing. The Direct Selling Self-Regulatory Council (DSSRC) began this inquiry pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry. This inquiry concerns earnings claims disseminated by Stella & DOT and its...
Case #71-2022 – Monitoring Inquiry – Lifebrook, LLC
Lifebrook was a multilevel marketing company headquartered in Vermillion, South Dakota that sells juices, supplements, and other products containing Aronia. The Direct Selling Self-Regulatory Council (DSSRC) began this inquiry pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #70-2022 – Monitoring Inquiry – My Lala Leggings, Inc.
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #69-2022 – Monitoring Inquiry – Max International, LLC
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #68-2022 – Monitoring Inquiry – Daxen, Inc.
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #67-2022 – Monitoring Inquiry – WorldVentures Marketing, LLC
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #66-2022 – Monitoring Inquiry – Tastefully Simple
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #65-2022 – Government Referral – FutureNet, Inc.
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs.
Case #64-2022 – Compliance Report – Young Living Essential Oils, LLC
Young Living Essential Oils, LLC (“Young Living” or the “Company”) is a global multi-level direct selling company that sells essential oils and other personal care and wellness products.
Case #63-2022 – Monitoring Inquiry – Innov8tive Nutrition
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #62-2022 – Monitoring Inquiry – MWC Living, LLC d/b/a BE (Better Experience)
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs and commenced this inquiry pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #61-2022 – Compliance Report – Mary Kay, Inc.
Mary Kay, Inc.’s (“Mary Kay” or the “Company) business model is that of a direct sales company, which means Mary Kay products are sold by Mary Kay independent sales force members, person to person, away from fixed retail locations. The Company is headquartered in Dallas, Texas. Mary Kay was founded in 1963 and has an estimated three million independent beauty consultants selling Mary Kay®...
Case #60-2022 – Monitoring Inquiry – Morinda, Inc., Corporation
Morinda, Inc. is a multi-level direct-selling company that markets a noni juice blend (Tahitian Noni) and various dietary supplements, personal care products, and essential oils. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #59-2022 – Government Referral – BE Rules, a/k/a BE Factor, f/k/a Melius
BE Rules, a/k/a BE Factor, f/k/a Melius (“BE” or the “Company”) is a multi-level direct selling company that markets forex and cryptocurrency trading package subscriptions. BE Rules is based in Dubai, United Arab Emirates and also maintains offices in India and the United Kingdom.[1] The Company maintains a Facebook page[2], an Instagram page[3], a company...
Case #58-2022 – Monitoring Inquiry – Surge365
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #57-2022 – Compliance Report – Le-Vel Brands, LLC
Le-Vel Brands, LLC (“Le-Vel” or the “Company) is a multi-level direct selling company headquartered in Frisco, Texas that was founded in 2012. The Company sells health and wellness products including dietary supplements containing vitamins, minerals, plant extracts, antioxidants, enzymes, probiotics, and amino acids.
Case #56-2022 – Monitoring Inquiry – Immunotec
Case #55-2021 – Monitoring Inquiry – Wildtree, Inc.
Wildtree, Inc. is a spice and seasoning company headquartered in Lincoln, Rhode Island that specializes in healthy meal solutions for families. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #54-2021: Government Referral – Dot Dot Smile
The Direct Selling Self-Regulatory Council (DSSRC) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #53-2021: Monitoring Inquiry – Jeunesse Global
The Direct Selling Self-Regulatory Council (DSSRC) opened a monitoring inquiry with Jeunesse Global over concerns about earnings claims disseminated by salesforce members for the company. DSSRC appreciated Jeunesse’s good faith actions to remove the challenged claims on social media sites, but DSSRC recommended Jeunesse continue its communication with salesforce members to ensure that...
Case #52-2021: Monitoring Inquiry – Daxen, Inc.
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #51-2021: Compliance Report – dōTERRA International, LLC
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. In 2019, DSSRC commenced an inquiry regarding several core health-related and income claims being disseminated on the social media pages of certain distributors of dōTERRA. More specifically, the inquiry included both...
Case #50-2021: Monitoring Inquiry – Chalk Couture
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #49-2021: Monitoring Inquiry – Lifebrook, LLC
The Direct Selling Self-Regulatory Council (DSSRC) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #48-2021: Government Referral – Q Sciences
The Direct Selling Self-Regulatory Council (DSSRC) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #47-2021: –Monitoring Inquiry– Root Wellness, LLC
The Direct Selling Self-Regulatory Council (DSSRC) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #46-2021: –Monitoring Inquiry– SwissJust USA
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #45-2021 – Monitoring Inquiry – Globallee, Inc.
The Direct Selling Self-Regulatory Council (DSSRC) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #44-2021 – Government Referral – ByDzyne
Case #43-2021 – Monitoring Inquiry – Limbic Arc, LLC
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs, Inc. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #42-2021 –Monitoring Inquiry– Max International, LLC
Case #41-2021 – Government Referral – Alliance in Motion Global, Inc.
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #40-2021 – NGO Inquiry –Mary Kay, Inc.
Case #39-2021: –Monitoring Inquiry– Enagic, USA, Inc.
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #38-2021: –Monitoring Inquiry– Zinzino, LLC.
The Direct Selling Self-Regulatory Council (“DSSRC”) is a national advertising self-regulation program administered by BBB National Programs. This inquiry was commenced by DSSRC pursuant to its ongoing independent monitoring of advertising and marketing claims in the direct selling industry.
Case #37-2021: –Monitoring Inquiry– Aihu, Inc.
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Administratively Resolved Inquiry Summaries
Case #3-2019 -Challenge- Team National, Inc.
BBB NATIONAL PROGRAMS, INC.
The Direct Selling Self-Regulatory Council
Case Number: 3-2019 – Non-Governmental Organization Challenge
INQUIRY BACKGROUND
Truth in Advertising, Inc. (“TINA” or “Challenger”) a nonprofit organization based in Madison, Connecticut challenged the marketing claims of Team National, Inc., (“Team National” or “Company”) a membership savings company located in Davie, Florida as well as claims made by its independent marketing directors (IMD).
BASIS OF INQUIRY
The Direct Selling Self-Regulatory Council (DSSRC), is a national advertising self-regulation program administered by BBB National Programs, Inc.
This inquiry was commenced by TINA pursuant to the challenge provisions articulated in the DSSRC Policy & Procedures.
More specifically, TINA submitted this challenge based upon core earnings and savings claims that it alleged were being inappropriately disseminated on Team National company-owned websites[1] and social media pages of Team National IMD’s that it has identified over several years as well as on the Company’s official You Tube page.
The representative earnings claims that were the subject of this review are as follows:
- Team National’s Road to Financial Freedom Archived You Tube Video
- “I am thrilled to share with you how through a simple referral system you can live the life of your dreams and have more choices and how you spend your time and your money. In 1997 my father developed our membership savings program. I share this dream to create even more six and seven figure income earners than any other company in our industry and we are well on our way…. As a Team National independent representative, you can own your own business, be your own boss, and can create an incredible income without a big investment. No products, no employees, and no inventory.”
- “We’re on track to earn over one thousand dollars a year from shopping online on the big end marketplace… over $83 dollars a month on average which is more than enough to pay for our membership”
- “Just 10 months of sharing this with my family and friends doubled my household income.”
- “When you accumulate 10 points on the right and 10 points on the left, as a result of you or your teams’ sales, you earn a $1500 check and this could happen weekly”
- “I was a full time college student one day when I first took a look at Team National and a year later I was able to graduate college, retire and turn 22 all in the same month… and in two and a half years we created an income that we could have never dreamed about making at this point in our lives.”
- “You develop more teams for extra earnings that pay you $2,500 dollars each in addition to another $1,500 You can earn more than enough to pay for the cost of your membership…
- “I used to be an auto mechanic. I worked six days a week owning my own shop. I had dirty hands every single day and because of Team National for the last 6 years I’ve been able to have clean hands I’ve made more money every single week than I used to make in in a month.”
- Team National’s Road to Financial Freedom 2019 You Tube Video
- “I’ve been in the financial services industry for 18 years and what I found is that most people haven’t saved enough for retirement or have way too much debt. With Team National what we’ve found is that not only can you save enough for retirement, but you can get out of debt in a short period of time.”
- “We are multiple business owners for years but, our businesses owned us. Thanks to the income from Team National, in just nine short months, we were able to walk away from those businesses and get our time back.”
- “… as Team National IMD, you own your own business and create incredible income without a big investment, no employees, and no inventory.”
- “We were introduced by Team National in our 20s and the first 90 days, we were making twice as much money from Team National than I was making as a high school basketball coach. We had no background in business, I wasn’t sure if we could do this or not, but with the help of a team, it was no big deal. Trust me. If we can do it, you can do it.”
- “In our first thirty days, we … got a $1,500 check and that helped us pay for our daughter’s private school tuition.”
- “[O]n a part-time basis, we created an organization that put us into financial freedom. It also allowed us to semi-retire and do this business out of the comfort of our home (which we paid off five years early). We are now debt free!”
- Teamnationalsuccess.com IMD Videos
- “We did this part-time with significant income results in just weeks. This gave us choices. We sold our trucking company and Cindy retired from her job. We were left with extra time and money.”
- “We have saved our membership money back several times, and working part-time we have made a fulltime income every year since we joined, while helping others do the same. It has been a godsend for our family.”
- “As a result of our time and energy we devoted to Team National, we’re now in the top 2% of income earners for the State of South Carolina. We have saved our membership money back several times, and working part-time we have made a fulltime income every year since we joined, while helping others do the same. It has been a godsend for our family.”
- “We started sharing Team National’s Road to Financial Freedom with family and friends, strictly on a part-time basis. By doing so, I was able to earn more with Team National than I was earning annually at my job. Then, I made a decision to ‘fire the boss’ and make Team National my new career.”
- “We did this part-time with significant income results in just weeks. This gave us choices. We sold our trucking company and Cindy retired from her job. We were left with extra time and money.”
- “[O]n a part-time basis, we created an organization that put us into financial freedom. It also allowed us to semi-retire and do this business out of the comfort of our home (which we paid off five years early). We are now debt free!”
- “In our fourth month, we made twice as much part-time with Team National as Dee Dee was making with her full-time job. We made the decision to bring her home at that point, so now she gets to ‘roll over instead of roll out!’.
- “Sharing this very part-time we were able to match Ginger’s teaching salary in the first month. The income has continued to grow and allowed us to send both of our sons to college, and develop a track of land near a local resort. It has also allowed both of us to retire early and spend our time helping others pursue excellence through Team National
- “By sharing this part-time around our busy schedules, we created an income that allowed Codi to walk away from that 14-year career in January 2017 and "retire" at 35. Team National has given us the time and financial freedom to do things and have choices that otherwise would have never been possible.”
- “We started sharing Team National’s Road to Financial Freedom with family and friends, strictly on a part-time basis. By doing so, I was able to earn more with Team National than I was earning annually at my job. Then, I made a decision to ‘fire the boss’ and make Team National my new career.”
CHALLENGER’S POSITION
TINA is an online resource dedicated to protecting consumers against questionable advertising and marketing. It aims to achieve its mission through investigative journalism, education, advocacy, and the promotion of truth in advertising.
According to the Challenger, Team National and its distributors have been disseminating atypical and unsupported income claims to market the Company’s business opportunity. TINA alleged that such marketing materials include claims of representatives quitting their jobs, becoming stay-at-home parents, traveling the world, as well as buying homes, vacation properties and luxury vehicles, among other things. It was the Challenger’s position that the representative claims at issue are particularly egregious given that Team National’s 2017 and 2018 Income Earnings Disclosure make it clear that the eighty-eight percent (88%) of the Company’s “eligible distributors” received no income and the average earnings for all Team National distributors was approximately $600 each year.
The Challenger called DSSRC’s attention to a December 18, 2017 letter TINA sent to Team National notifying the Company that it had collected more than 80 examples of what it believed to be inaccurate income claims. TINA stated that although Team National did not dispute the ongoing presence of these claims, as of June 2018, all of the claims continued to be disseminated. Moreover, over the next two years, TINA found over 150 more examples of what it argued were unsupported income claims made by the Company and its distributors. TINA maintained that almost all of the claims it brought to Team National’s attention are still available online.
While TINA did recognize that “some of the company’s marketing materials include language to indicate that the results depicted are not typical” it also contended that the language was “legally insufficient” because it did not clearly or conspicuously disclose the amount of income that typical Team National participants earn and that none of the disclosures are located prominently enough or in close proximity to earnings representation for consumers to interpret them appropriately.
The Challenger noted that Team National acknowledged that, at a minimum, clear and conspicuous disclosures are required for all earnings claims used to market the Company and that the only issue left for the DSSRC to evaluate is whether the disclaimers at issue are adequate. Accordingly, TINA contended that the use of atypical earnings realized by only a few IMDs to market Team National’s business opportunity runs afoul of the FTC Act and that the disclosures Team National is using fail to remedy the violation. TINA referred to various guidance documents from the FTC and its staff as support for its position. [2]
TINA disputed Team National’s contention that the disclosure that the Company uses in its current marketing materials comply with the law “by providing an Income Earnings Disclaimer and a clear and conspicuous link to an Income Earnings Disclosure wherever a Success story or lifestyle testimonial appears.” Conversely, the Challenger maintained that neither the Company’s disclaimers nor its link to an income disclosure statement remedy the unsupported messages being communicated in the Company’s marketing materials.
In support of its position, TINA called DSSRC’s attention to the FTC’s Guides On the Use of Endorsements and Testimonials (“FTC Guides”).[3] According to the Challenger, the FTC Guides propose that when a Company markets its business opportunity using income claims that are not representative of what consumers will typically achieve, the marketing material – including materials disseminated by a Company’s distributors – must, at a minimum, clearly and conspicuously disclose what is typical.
TINA also disputed Team National’s assertion that it “discloses clearly and conspicuously the average earnings of its Independent Marketing Directors everywhere a Lifestyle or Success story testimonial appears on any of the websites . . .”. The Challenger informed DSSRC that Team National’s disclosure language states simply that “This information is not intend to represent typical, actual or average savings or earnings. Actual earnings results by an Independent Marketing Director (IMD) will depend on the time and effort devoted to building the business. We do not guarantee success or earnings. Visit www.testimonialusa.com/business opportunity for the Income Earnings Disclosure.” In addition, the Challenger asserted, the disclosure appears on screen accompanied by a monotone, fast-talking voice-over; is then followed by several minutes of express and implied income claims and; ends with this same disclosure on the screen.
TINA argued that the Team National language referenced above is a disclosure of typicality that fails to inform consumers what typical participants earn and cited to the remarks of a former director of the FTC’s Bureau of Consumer Protection who explained, these types of disclaimers are ineffective:
“The Commission’s enforcement history with false or deceptive advertising using consumer endorsements, as well as its own research on consumer perception of such ads, has made it increasingly clear that in one key aspect – disclaimers of typicality – the Guides were not working as intended to prevent deception. Such disclaimers simply are not effective. Consumers interpret the results depicted in testimonials to be representative of what consumers can expect to achieve, even where testimonials are accompanied by the statement, “Results not typical.”[4]
According the Challenger, the Commission’s consumer research found that even where testimonials were accompanied by the strong statement, “These testimonials are based on the experiences of a few people and you are not likely to have similar results,” consumers still believed that the results in the testimonials were representative of what would generally be achieved. TINA further maintained that the revised FTC Guides no longer contain the so-called “safe harbor” for disclaimers of typicality, so it is no longer a shield from liability to simply use the “results not typical” language with testimonials.[5]
TINA also contended that the language in Team National’s disclosure stating that “[a]ctual earnings results by an Independent Marketing Director (IMD) will depend on the time and effort devoted to building the business,” is also ineffectual. The Challenger mentioned that the FTC and federal courts have made clear that such language is not sufficient – nor appropriate – for direct selling companies to say or imply that actual earnings will depend on the time and effort devoted to building the business or, put differently, that financial failure is due to participants’ failure to devote enough effort.[6] TINA added that this is especially true where, as here, the Company’s own marketing materials directly contradict this assertion by repeatedly claiming that distributors can earn full-time pay working part-time hours.
According to the Challenger, on Company webpages, Team National provides – at the very bottom of pages, below express and implied income claims – a hyperlink to the Company’s Income Earnings Disclosure, along with the same disclaimer of typicality referred to above. The Challenger contended that similar insufficient disclosures appear elsewhere in marketing materials.
In addition, TINA noted that the FTC has made clear that it is not legally sufficient for a company to rely on a hyperlink for a necessary disclosure and cited to the FTC’s Dot.com Disclosure Guide which states that:
“Disclosures that are an integral part of a claim or inseparable from it should not be communicated through a hyperlink. Instead, they should be placed on the same page and immediately next to the claim, and be sufficiently prominent so that the claim and the disclosure are read at the same time, without referring the consumer somewhere else to obtain this important information.”[7]
In sum, TINA maintained that Team National’s Income Earnings Disclosure, to which the hyperlink directs consumers, does not remedy the deceptive income claims because it fails to inform consumers what a typical distributor is likely to earn.
COMPANY’S POSITION
Team National explained that it is an MLM (multi-level marketing) Company that seeks to provide money-saving products and services for its members in more than 20 industries, such as jewelry, home furnishings, communications services, travel, insurance, financial services, and rental cars. Its membership savings program provides value in a variety of areas through collective buying power and strives to connect consumers with savings and value-added services on products they purchase regularly.
The Company informed DSSRC that TINA previously brought the same concerns at issue in this inquiry to the DSA Code Administrator and other regulatory agencies. Team National maintained that, notwithstanding the fact the Company was in full compliance with the DSA Code of Ethics, it has made significant improvements to better clarify information for consumers and for Team National’s independent sales force. Moreover, Team National has indicated that it will continue to make ongoing modifications to it marketing materials and internal compliance process improvements in the best interest of the consumer. For example, Team National will continue making modifications to testimonials from its IMDs and revisit the content and presentation of older, archived success stories. In response to this TINA challenge of its advertising and marketing claims, the Company informed DSSRC that it clearly and conspicuously posts an income earnings disclaimer at the bottom of its website with a hyperlink to the income earnings disclosure. The income disclosure states:
“The income chart is for all US TN IMDs who were eligible to earn downline commissions in 2018. An Independent Marketing Director (IMD), is a distributor that currently registered as eligible to represent TN to market and sell TN products and services and to sponsor a downline sales organization. In 2018,12.4% of IMDs received commissions or bonus income, 87.6% off all received no income at all and of all IMDs the average earnings were $636.99”
Team National asserted that it clearly and conspicuously discloses the average earnings of its Independent Marketing Directors everywhere a lifestyle or success story testimonial appears on any of its websites. It noted that in January 2018 the Company increased the size of the font used in its income earnings disclaimer stated below to make it even more conspicuous to consumers:
“This information is not intended to represent typical, actual or average savings or earnings. Actual earnings results by an Independent Marketing Director (IMD) will depend on the time and effort devoted to building the business. We don’t guarantee success or earnings. Click here for the Income Earnings Disclosure.”
With respect to the statement in the video from the Team National spokesperson, the Company alerted DSSRC that the quote identified by TINA is from an old video that the Company is no longer in uses and is not being used on any of its current sites. Team National also contended that sharing a video from Team National’s founder should not be considered a statement of expected results because it does not create expectations in the minds of consumers or downline recruits. Moreover, the Company maintained that the representation was essentially a broad vision statement and that the video containing the statement had both a disclaimer as well as a link to the income earnings disclosure.
Team National contended that the Challenger’s inquiry of Success Story and Lifestyle content is really an issue of transparency of the disclosure and disclaimer and that the Road to Financial Freedom video expressly directs consumers to an income earnings disclosure and a disclaimer that clearly and conspicuously addresses generally expected results.
More specifically, the Company explained that its income earnings disclosure appears prominently below all of the videos on the on the www.teamnationalsuccess.com website and is also prominently listed on the side of all fifty-three (53) “Success Story” videos located at www.livingteamnational.com and at the outset of every video posted on the website. The Company noted that there are no Success Stories posted directly on its other websites, teamnationalusa.com and saveandearnmore.com. In addition, Team National stated that a conversion project was recently completed updating all Success Stories videos on the Team National Youtube channel with earnings disclaimers and a Company web address directing consumers to the income earnings disclosure.
Team National indicated that closely adheres to the FTC recommendations regarding express and implied earning claims, hypothetical scenarios and earnings projections. More specifically, the Company is committed to disclosing:
- the percentage of recruits that make money
- the average earnings of active representatives who make money; and
- the percentage of distributors that achieve a specific level of earnings when a quantified amount is provided by advertising
The Company also maintained that the official Team National website is fully compliant with the DSA Code of Ethics.
Accordingly, the Company maintained that it is completely transparent regarding its earnings disclosure and disclaimers and that it carefully adheres to both the DSA Code of Ethics as well as all FTC rules and regulations regarding disclosures.
ANALYSIS AND RECOMMENDATION
In its review of marketing materials for Team National, DSSRC recognized the unique and valuable opportunity available for Team National members to purchase automobiles, electronics, home furnishings, merchant credit card processing and a myriad of other products and services at very favorable rates through a collective buying business model. However, notwithstanding this enterprise model, DSSRC agreed that the Challenger raised legitimate concerns regarding the dissemination of video testimonials that discuss the extraordinary results achieved by a select group of Team National IMDs in an unqualified context.
During the course of this inquiry, Team National made ongoing revisions to a number of the videos referenced by the Challenger and in some cases the videos have been removed in their entirety. While DSSRC expressed its appreciation to Team National for the voluntary actions it has taken to address the concerns of the Challenger, DSSRC also felt it imperative to emphasis the fundamental disclosure obligations a company must adhere to when communicating atypical savings and business opportunity claims.
1. Team National’s Road to Financial Freedom Archived You Tube Video
In this archived video from 2014, the President and CEO of Team National explains the potential financial benefits and “incredible income” that may be realized by Team National IMDs using a simple referral technique and her dream to “create even more six and seven figure income earners.” The video also depicts several expensive boats and homes as the video narrator asks viewers to imagine the ability “to buy the home of your dreams and the financial stability that brings peace of mind these people are IMDs with Team National. Living the American Dream they have acquired the wealth they wanted for their family, their future and their freedom…”. The video includes a number of testimonials from Team National IMDs who, among other things, state that they: “can now go on trips and vacations that we never ever thought we could ever do”; “saw that there was no risk… within the first 30 days we already put our membership money back in our pocket” and that “I used to be an auto mechanic….and because of Team National for the last 6 years I have been able to have clean hands and make more money every single week than I used to make in a month.” The video also explains the process of accumulating membership points in order to earn $1,500 in weekly commission checks while noting that “this can happen to you.”
A ten-second, three paragraph disclosure does appear at the beginning of the video which notes that the presentation is not intended to “… represent typical, actual or average savings of specific customers who may experience greater or lesser savings” or “… represent typical, actual or average earnings of specific Team National IMDs.“
DSSRC acknowledged the Company’s assertion that the testimonials are literally true of the earnings and savings experienced by these particular Team National IMD’s. There was also no dispute that the stated results are not typical for the average Team National IMDs. Accordingly, the pertinent issue in this inquiry was whether the Team National videos adequately disclosed the results that may be typically expected by consumers and potential IMDs. DSSRC concluded that they did not.
It is a long-standing principle of advertising that an advertiser has the burden to support all reasonable interpretations of its claims and not simply the messages it intended to convey. Verizon Communications, Inc. (Verizon Wireless Services (“ First to 5G”), Report #6258, NAD/CARU Case Reports (May 2019). Further, in the direct selling context, the DSSRC has made clear that the responsibility of the direct selling company extends to the claims disseminated by members of a direct selling company’s salesforce.[8]
With respect to the use of testimonials from IMDs communicating earnings results that may not be consistent with the expectations of typical consumers or recruits, DSSRC agreed with the Challenger that the guidance provided by the FTC Guides was particularly relevant. More specifically, the FTC Guides state that:
An advertisement containing an endorsement relating the experience of one or more consumers on a central or key attribute of the product or service also will likely be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve with the advertised product or service in actual, albeit variable, conditions of use. Therefore, an advertiser should possess and rely upon adequate substantiation for this representation. If the advertiser does not have substantiation that the endorser’s experience is representative of what consumers will generally achieve, the advertisement should clearly and conspicuously disclose the generally expected performance in the depicted circumstances, and the advertiser must possess and rely on adequate substantiation for that representation. 16 CFR § 255.2(b). (emphasis added).
As also noted by the FTC, testimonials claiming specific results usually will be interpreted to mean that the endorser’s experience reflects what others can also expect. Statements like “Results not typical” or “Individual results may vary” won’t change that interpretation.[9]
Thus, pursuant to section 255.2(b) of the FTC Guides, DSSRC determined that if the results expressed in the video by Team National IMDs are not typical, the burden is on the Company to disclose what the typically expected results would be. Moreover, this legal principle regarding the disclosure of typically expected results is applicable any time an advertiser communicates results obtained from using a product or service that would not be typically expected by consumer.
In addition, the use of unqualified claims that imply receiving “career-level income” have been cautioned against by the FTC. In section 13 of its 2018 Business Guidance Concerning Multi-Level Marketing (“FTC Business Guidance”), the FTC states that unless it can be demonstrated that direct selling participants can generally achieve such results, companies (and/or their representatives) should not “represent through words or images that participants can earn thousands of dollars a month, quit their jobs, “fire their bosses”.[10] Team National’s Road to Financial Freedom Archived You Tube video included several testimonials that reference such language including (but not limited to): “in just nine short months we were able to walk away from our business,” “ I was making twice as much money from Team National than I was making as a high school basketball coach” “…working part-time we have made a full time income every year since we joined,” “On a part-time basis, we created an organization that put us to financial freedom “I was able to earn more with Team National than I was earning annually at my job. Then I made a decision to ‘fire the boss’ and make Team National my new career”, etc. It was also noted by DSSRC that images of large houses that that appear throughout the video further contribute to the reasonable consumer interpretation that such luxuries may be generally expected by Team National IMDs However, such a consumer take-away has not been supported by the Company.
Moreover, Team National’s Road to Financial Freedom You Tube video includes a hypothetical scenario describing how Team National IMDs can accumulate income through selling standard and premium memberships (“When you accumulate 10 points on the right and 10 points on the left, as a result of you or your teams’ sales, you earn a $1500 check and this could happen weekly” and “You develop more teams for extra earnings that pay you $2,500 dollars each in addition to another $1,500 You can earn more than enough to pay for the cost of your membership…” .). DSSRC determined that the amount of money described in this scenario would be considered atypical as it significantly exceeds the amount of income received by the average Team National IMD and as such, should trigger a Company disclosure of the average IMD earnings that could generally expected by potential recruits. Such a scenario is addressed in the FTC Business Guidance stating that “…a hypothetical earnings scenario – such as “if you recruit 30 people who each sell $1,000 of product each month, you will earn $1,500 a month” – may imply that the assumptions made (e.g., the number of people recruited, the amount sold by each recruit) are consistent with the actual experiences of typical participants. If the assumptions are not, the earnings scenario likely would be false or misleading to consumers.” [11]
Accordingly, while Team National did provide information indicating that the average earnings for all Team National distributors was approximately $600 each year, this annual earnings is not consistent with the earnings claims at issue in this inquiry and, as such, the Company has the burden to clearly and conspicuously disclose its annual average earnings information to consumers. Team National did attempt to disclaim any potential inaccurate messages communicated by the video testimonials by including a three paragraph disclosure at the beginning of the video which includes language stating that the earnings attested to in the testimonials do not “… represent typical, actual or average savings of specific customers who may experience greater or lesser savings” or “… represent typical, actual or average earnings of specific Team National IMDs.“. Notwithstanding such language, DSSRC concluded that the disclosure was not in compliance with the FTC Guides.
Regarding the clear and conspicuous placement of disclosures in website videos, the FTC Dot.com Disclosure Guide states that in evaluating whether a disclosure is likely to be clear and conspicuous, advertisers should consider its placement in the ad and its proximity to the relevant claim. The closer the disclosure is to the claim to which it relates, the better. Additional considerations include: the prominence of the disclosure; whether it is unavoidable; whether other parts of the ad distract attention from the disclosure; whether the disclosure needs to be repeated at different places on a website and whether disclosures in audio messages are presented in an adequate volume and cadence.[12] The FTC Dot.com Disclosure Guide further states that because online ads often contain videos with claims that require qualification, the disclosure should accompany the claim. Visual disclosures presented in video clips or other dynamic portions of online ads should appear for a duration sufficient for consumers to notice, read, and understand them. As with brief video superscripts in television ads, fleeting online disclosures are not likely to be effective.[13]
Lastly, DSSRC determined that the fact that several earnings representations were communicated by a company spokesperson does not change the way that consumers would interpret the claims (i.e., that the same results may be typically expected by Team National IMDs) and does not absolve the Company of its obligation to disclose the results that may be typically expected by consumers or potential downline recruits. For example, the BBBNP’s Electronic Retailing Self-Regulation Program (ERSP) has repeatedly determined that, unless qualified with a clear and conspicuous disclosure indicating that the consumers should not expect similar results, claims pertaining to the success of the marketer/spokesperson using the same techniques being advertised could be interpreted by consumers as meaning that they can typically expect the same level of success.[14]
Accordingly, DSSRC concluded that Team National’s Road to Financial Freedom Archived You Tube, in the context in which it is currently archived, should be either removed or significantly modified. More specifically, pursuant to the applicable regulatory and self-regulatory guidance described above, DSSRC recommended that any future promotional videos that make reference to the amount of income that IMD’s can earn by working with Team National should include a clear and conspicuous disclosure at the beginning and end of the videos which indicates the amount of annual income that the average Team National IMD has earned and that a similar disclosure should appear in the video any time a reference is made (either by a Company spokesperson or a Team National IMD) to income that has been or can be potentially be earned as a Team National IMD.
In sum, DSSRC concluded that the income claims enumerated in the Basis of Inquiry were not appropriately disseminated in the context in which they appear in the Road to Financial Freedom video posted on YouTube and it is recommended that the video be removed in its entirety or be significantly modified to include clearly and conspicuously disclosures regarding the generally expected income of Team National IMDs.
2. Team National’s Road to Financial Freedom 2019 You Tube Video
Although the 2019 Team National Financial Freedom video also archived on You Tube did not include express earnings from the Company spokesperson and appeared to be more focused on the Team National business model of providing savings through discounted products and services for its members, there were several earnings representations communicated by Company IMDs. Unlike the Road to Financial Freedom Archived You Tube Video discussed in the previous section of this decision, the 2019 video does not include any disclosure language at the beginning of the video but, conversely, contains a disclosure during the explanation of the Team National Compensation Plan (i.e., “Actual earning results will vary. We do not guarantee success or earnings. Visit teamnationalusa.com/businessopportunity for the Income Earnings Disclosure”) and at the end of the video (i.e., “This presentation is intended to illustrate the marketing program offered by Team National. It is not intended to represent typical, actual or average earnings. Actual earnings results by an Independent Marketing Director (IMD) will depend on the time and effort devoted to building the business. We do not guarantee success or earnings. Visit teamnationalusa.com/businessopportunity for the Income Earnings Disclosure)”.
As noted above, the FTC requires that if the advertiser does not have substantiation that the endorser’s experience is representative of what consumers will generally achieve, the advertisement should clearly and conspicuously disclose the generally expected performance in the depicted circumstances, and the advertiser must possess and rely on adequate substantiation for that representation.[15] As also noted earlier by DSSRC, the FTC has found that disclosures such as “Results not typical” or “Individual results may vary” does appropriately qualify testimonial claims which communicate results that may not be generally expected by consumers.
DSSRC also concluded that a passing reference in the middle and at the end of the 2019 Team National Financial Freedom video to a hyperlink to the Company’s Income Earnings disclosure did not adequately satisfy its disclosure obligation of the results that would be generally expected by consumers. As stated in the FTC Dot.com Disclosure Guide:
Disclosures that are an integral part of a claim or inseparable from it should not be communicated through a hyperlink. Instead, they should be placed on the same page and immediately next to the claim, and be sufficiently prominent so that the claim and the disclosure are read at the same time, without referring the consumer somewhere else to obtain this important information. This is particularly true for cost information or certain health and safety disclosures.
Accordingly, similar to DSSRC’s analysis of the disclosure in Team National’s Road to Financial Freedom Archived You Tube Video, with respect to Team National’s Road to Financial Freedom 2019 You Tube Video, DSSRC recommended that any express or implied references to the amount of income that IMD’s can earn by working with Team National should be accompanied by a clear and conspicuous disclosure at the beginning and end of the video which indicates the amount of annual income that the average Team National IMD earned and that a similar disclosure should appear in the video any time a reference is made to income that has been or can be potentially be earned as a Team National IMD, as well as during any hypothetical earnings scenarios that are presented.
In addition, as was the case with Team National’s Road to Financial Freedom Archived You Tube Video, Team National’s Road to Financial Freedom 2019 You Tube Video also includes unqualified claims that imply receiving “career-level income” (“… Thanks to the income from Team National, in just nine short months, we were able to walk away from those businesses and get our time back.”; “… in the first 90 days, we were making twice as much money from Team National than I was making as a high school basketball coach.” “[O]n a part-time basis, we created an organization that … allowed us to semi-retire and do this business out of the comfort of our home (which we paid off five years early). We are now debt free!.” etc.). Accordingly, DSSRC concluded that unless it can be demonstrated that Team National IMDs can generally achieve such results, companies (and/or their representatives) should not represent through words or images that participants can earn thousands of dollars a month and/or replace their previous income.
3. Teamnationalsuccess.com IMD Videos
According to TINA, www.teamnationalsuccess.com was one off several repositories for videos from Team National IMDs which detailed stories of aytypical income results.[16]
During the pendency of the DSSRC inquiry, Team National voluntarily disabled the www.teamnationalsuccess.com website an action that DSSRC both greatly appreciated and believed was necessary and appropriate based upon the inadequacy of the disclosures that had been used by the Company to qualify atypical income representations made by Team National IMDs.[17]
If Team National intends to continue using www.teamnationalsuccess.com and other websites as an archive for future IMD Success Stories that communicate income results that would not be generally expected by the typical Team National IMD, DSSRC recommends that the Company be mindful of the direction provided in the FTC Guides regarding consumer endorsements, more specifically that statements relating the experience of one or more consumers will likely be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve with the advertised product or service in actual, albeit variable, conditions of use.[18] As noted above, any future videos from IMDs that make reference to the amount of income that can be earned by working with Team National should include a clear and conspicuous disclosure at the beginning and end of the videos which indicates the amount of annual income that the average Team National IMD has earned and that a similar disclosure should appear in the video any time a reference is made (either by a Company spokesperson or a Team National IMD) to income that has been or can be potentially be earned as a Team National IMD.
Finally, DSSRC concluded that disclaimers at the beginning, during and/or at the end of videos indicating only that the results attested to by IMDs are “not intended to represent typical, actual or average savings or earnings” and that “… earnings results by an Independent Marketing Director (IMD) will depend on the time and effort devoted to building the business” will not suffice for purposes of properly qualifying a representation of atypical results unless the Company also includes a clear and conspicuous disclosure of the average earnings that may be generally expected by consumers and that such a disclosure is also communicated in close proximity to any earnings claims that are communicated in such videos.
CONCLUSION
DSSRC expressed its appreciation to Team National for the voluntary actions it has taken in an effort to communicate a more accurate message regarding the income results of Team National IMDS. More specifically, during the pendency of the DSSRC inquiry, Team National voluntarily disabled the www.teamnationalsuccess.com website and significantly revised other Company-owned websites, actions that DSSRC believed to be necessary and appropriate based upon the inadequacy of disclosures that had been used by the Company to qualify atypical income representations made by Team National IMDs.
DSSRC acknowledged the Company’s assertion that the testimonials in the subject videos are literally true regarding the earnings and savings experienced by these particular Team National IMDs videos but, conversely, it determined that the income results stated in the videos posted on Youtube and on Company-owned websites could not be generally expected by the typical Team National IMD. Accordingly, DSSRC concluded that the income claims were not appropriately disseminated in the context in which they appear in the two Road to Financial Freedom videos posted on YouTube and on other Team National controlled websites and recommended that the videos either be removed in their entirety or be significantly modified. Specifically, DSSRC recommended that any future videos posted by Team National include clear and conspicuous disclosures regarding the generally expected income of Team National IMDs at the beginning and end of the videos as well as at any time that an express or implied atypical income claim is communicated.
COMPANY STATEMENT
“Team National acknowledges the DSSRC report and appreciates the constructive dialogue. We have read the DSSRC recommendations, and without admitting agreement with the DSSRC, as a good corporate citizen in the direct selling community, Team National will take DSSRC recommendations into account. Team National continuously works to improve its marketing presentation to promote ethical marketing and consumer practices. Even before discussions with the DSSRC, Team National, under guidance from the Direct Selling Association and its Code Administrator worked to follow the best ethical and advertising practices of the industry including being in compliance with the Direct Selling Code of Ethics. However, Team National is always open to constructive suggestions; thus, reflective of our dialogue with the DSSRC, we are reviewing our training practices and our marketing material.”
(Case No. 3-2019 PCM, closed on 8/21/19)
© 2019. BBB National Programs, Inc.
[1] www.teamnationalusa.com; www.teamnationalsuccess.com, www.livingteamnational.com and www.saveandearnmore.com.
[2] For example, see Keynote Remarks of FTC Chairwoman Ramirez, DSA Business & Policy Conference, Oct. 25, 2016, https://www.ftc.gov/system/files/documents/public_statements/993473/ramirez_-_dsa_speech_10-25-16.pdf “A legitimate multi-level marketer must accurately represent its business opportunity and what a participant is likely to earn. These representations must be truthful, non-misleading, and substantiated. Practically speaking, this means that multi-level marketers should stop presenting business opportunities as a way for individuals to quit their jobs, earn thousands of dollars a month, make career-level income, or get rich because in reality, very few participants are likely to do that. Although it may be true that a very small percentage of participants do have success of this type, testimonials from these rare individuals are likely to be misleading because participants generally do not realize similar incomes.”
[3] 16 CFR § 255.2
[4] FTC Remarks of David C. Vladeck, Director, FTC Bureau of Consumer Protection, Feb. 25, 2010, https://www.ftc. https://www.ftc.gov/sites/default/files/documents/public_statements/remarks-magazine-publishersamerica/100225mpaspeech.pdf
[5] FTC Publishes Final Guides Governing Endorsements, Testimonials: Changes Affect Testimonial Advertisements, Bloggers, Celebrity Endorsements, Oct. 5, 2009, https://www.ftc.gov/news-events/pressreleases/2009/10/ftc-publishes-final-guides-governing-endorsements-testimonials (“In contrast to the 1980 version of the Guides – which allowed advertisers to describe unusual results in a testimonial as long as they included a disclaimer such as “results not typical” – the revised Guides no longer contain this safe harbor.”)
[6] See FTC v. Vemma Nutrition Co., Complaint for Permanent Injunction and Other Equitable Relief, dated Aug. 17, 2015, 15-cv-01578 (D.Ariz.), https://www.truthinadvertising.org/wp-content/uploads/2015/08/VEMMAComplaintforPermanentInjunction.pdf, at ¶ 39 (“While Defendants sometimes attempt to provide disclaimers when making these and other income claims, their attempts are inadequate. Vemma typically dilutes purported disclaimers, such as ‘results may vary,’ with statements implying that negative results are due to the inadequate efforts of the Affiliate.”).
[7] https://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-staffrevises-online-advertising-disclosure-guidelines/130312dotcomdisclosures.pdf.
[8] See Wildtree, Inc,. DSSRC Case No. 1-2019
[9] See The FTC’s Endorsement Guides: What People Are Asking. www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking.
[10] FTC Business Guidance Concerning Multi-Level Marketing, §13 (January 2018)
[11] Id.
[12] FTC Dot.com Disclosure Guide. Overview; page i.
[13] Supra page 20.
[14] See Capital Information Group, Inc. Investing Daily’s Personal Finance, ERSP Case# 434 (2/19/19) and Clever Investor, Clever Investor Membership Program, ERSP Case# 410 (9/18/17).
[15] FTC Guides Concerning the Use of Endorsements and Testimonials in Advertising. 16 CFR § 255.2(b).
[16] TINA also called DSSRC’s attention to www.saveandearnmore.com, www.livingteamnational.com and www.teamnationalusa as Team National-owned websites which housed similar atypical success story videos.
[17] Team National is currently in the process of revising other company-owned websites including www.saveandearnmore.com, www.livingteamnational.com and www.teamnationalusa.
[18] Supra at 14.
DSSRC Administrative Closure #315
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") regarding four social media posts that communicated earnings claims and five posts that communicated health-related product claims. DSSRC expressed concern that the earnings claims conveyed that a typical salesforce member could achieve “financial freedom” and that typical Company salesforce members could earn...
DSSRC Administrative Closure #314
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets skin care and cosmetic products. The claims at issue consisted of two product performance claims and seven earnings claims that were disseminated on Facebook.
DSSRC Administrative Closure #313
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that markets nutritional supplements, bath and beauty care treatments, aromatherapy, home accents, and motivational products regarding seven product performance claims and four earnings claims that were disseminated by the Company's salesforce on Facebook and Youtube, including one claim that appeared on the...
DSSRC Administrative Closure #312
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that sells adult novelty products regarding nine Facebook posts that communicated earnings claims. DSSRC expressed concern about the posts conveyed claims regarding the potential income a typical salesforce member could earn from the Company's business opportunity, including the possibility of achieving...
DSSRC Administrative Closure #311
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that sells health supplements regarding two social media posts that communicated earnings claims, two posts that communicated health-related claims, and one claim on the Company website that communicated a parity claim regarding the effectiveness of the Company’s products. DSSRC expressed concern that the posts...
DSSRC Administrative Closure #310
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that sells personal protective equipment regarding fifteen social media posts that communicated earnings claims. Thirteen of the posts were communicated on Facebook, one appeared on Pinterest and the remaining blog post was created by a third party with no affiliation to the Company. DSSRC...
DSSRC Administrative Closure #309
The Direct Selling Self-Regulatory Council (DSSRC) contacted, a direct selling company (Company”) that sells wine and spirits, regarding three Facebook posts and one YouTube video that communicated earnings claims. DSSRC expressed concern about the posts conveyed claims regarding the potential income that a typical salesforce member could earn from the Company's business opportunity, including the...
DSSRC Administrative Closure #308
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that markets nutrition, personal care, home cleaning and cosmetic products regarding two references to “financial freedom.” One reference was made by an independent contractor and disseminated on his LinkedIn page and the second reference was made on the Company website. The website also featured a short...
DSSRC Administrative Closure #307
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") headquartered in Europe that markets magnetic jewelry products regarding 12 product performance claims (including hashtags) that were disseminated on Facebook. DSSRC was concerned that the claims at issue communicated the message that the Company’s products could prevent or treat health-related conditions...
DSSRC Administrative Closure #306
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") regarding five social media posts that communicated earnings claims and three posts that communicated health-related product claims. DSSRC expressed concern that the earnings claims conveyed that a typical salesforce member could achieve “financial freedom” and that typical Company salesforce members could earn...
DSSRC Administrative Closure #305
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that sells bath and body products regarding four social media posts that communicated earnings claims and two posts that communicated health related claims. DSSRC expressed concern about the posts conveyed claims regarding the potential income that a typical salesforce member could earn from the Company's...
DSSRC Administrative Closure #304
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets nutritional supplement and weight-loss products regarding health claims disseminated on social media by Company salesforce members. The claims at issue consisted of six health-related product claims that were disseminated on Facebook and YouTube.
DSSRC Administrative Closure #303
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that markets dietary supplements and other personal care products regarding certain claims that appeared on social media platforms including Facebook, LinkedIn, YouTube and TikTok. The claims identified by DSSRC in the inquiry consisted of five earnings claims and two product claims. With respect to the...
DSSRC Administrative Closure #302
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that markets travel products regarding 15 earnings claims that were disseminated on social media by members of the Company's salesforce. DSSRC expressed its concern to the Company about the social media posts conveying claims regarding the potential income that a typical salesforce member could earn from the...
DSSRC Administrative Closure #301
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company ("Company") that markets health, fitness and beauty products regarding five earnings claims disseminated by members of the Company's salesforce on Facebook.
DSSRC Administrative Closure #300
The Direct Selling Self-Regulatory Council (DSSRC) reached out to a direct selling company ("Company") that sells home and personal fragrance products regarding seven earnings claims disseminated on social media by members of the Company's salesforce. DSSRC expressed concern about the posts conveying claims regarding the potential income that a typical salesforce member could earn from the Company's...
DSSRC Administrative Closure #299
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets health and wellness products regarding nine earnings and health claims disseminated on Facebook by Company salesforce members.
DSSRC Administrative Closure #298
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that sells health, wellness, and beauty products, regarding 11 product performance claims and two earnings claims that were disseminated by salesforce members on Facebook, Pinterest, Instagram and X.
DSSRC Administrative Closure #297
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that sells personal care and cleaning products regarding claims disseminated on social media by Company salesforce members. The claims at issue consisted of nine earnings claims that were disseminated on Facebook and Loom.
DSSRC Administrative Closure #294
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company that markets household good products regarding seven social media posts that were disseminated by a salesforce member on Facebook and YouTube.
DSSRC Administrative Closure #293
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company regarding seven earnings claims disseminated on social media by Company salesforce members.
DSSRC Administrative Closure #292
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company that sells meal kits and other food accessories regarding 13 earning claims that were disseminated on Facebook, LinkedIn, and TikTok by Company salesforce members.
DSSRC Administrative Closure #291
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) specializing in the clean air industry regarding ten earnings claims disseminated on social media by Company salesforce members.
DSSRC Administrative Closure #290
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding two social media posts disseminated by Company salesforce members on Facebook.
DSSRC Administrative Closure #289
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding claims disseminated on social media by Company salesforce members.
DSSRC Administrative Closure #288
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding eight claims disseminated on social media by Company salesforce members.
DSSRC Administrative Closure #287
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding eleven earning claims disseminated on social media by Company salesforce members.
DSSRC Administrative Closure #286
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding ten earning claims disseminated on Facebook and Instagram and which included terms such as “financial freedom”, “unlimited earnings potential” and “debt free.”
DSSRC Administrative Closure #285
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding nine earnings claims and one product performance claim disseminated on Facebook by Company salesforce members.
DSSRC Administrative Closure #284
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding nine earnings claims disseminated on social media by Company salesforce members. The posts at issue originated from Facebook and Pinterest.
DSSRC Administrative Closure #281
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding seven product performance claims disseminated on Facebook by Company salesforce members.
DSSRC Administrative Closure #280
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding ten earnings claims disseminated on social media by Company salesforce members. The posts at issue originated from Facebook and YouTube.
DSSRC Administrative Closure #279
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding eight earning claims disseminated on Facebook by Company salesforce members.
DSSRC Administrative Closure #278
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding eight product performance claims and nine earnings claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook, TikTok, and YouTube.
DSSRC Administrative Closure #277
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding twelve earning claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook and YouTube.
DSSRC Administrative Closure #276
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding fourteen earning claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook and Pinterest.
DSSRC Administrative Closure #275
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets home décor and fashion accessories regarding eight earning claims disseminated on social media by Company salesforce members. All of the claims at issue were disseminated on Facebook.
DSSRC Administrative Closure #274
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets beauty products regarding seven earning claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook and YouTube.
DSSRC Administrative Closure #273
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets CBD products regarding fifteen product performance claims disseminated on social media by Company salesforce members. More specifically, the claims at issue were disseminated on Facebook and Instagram.
DSSRC Administrative Closure #272
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding twelve earning claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook and on the Company website.
DSSRC Administrative Closure #271
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding twelve product performance claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook, Vimeo, Pinterest, and Twitter.
DSSRC Administrative Closure #270
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets CBD products regarding eleven product performance claims and one earnings claim disseminated on social media by Company salesforce members. The claims at issue were disseminated on Twitter, TikTok, Facebook and Instagram. Although several of the social media posts were disseminated in 2019 or...
DSSRC Administrative Closure #269
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding six earning claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook and YouTube.
DSSRC Administrative Closure #268
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding eight product claims and four earning claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook and YouTube.
DSSRC Administrative Closure #267
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding ten product claims and four earning claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook, YouTube, and Twitter.
DSSRC Administrative Closure #266
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that specializes in hemp-based CBD oil products regarding eleven product claims and four earning claims that were disseminated on Facebook and YouTube.
DSSRC Administrative Closure #265
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding nine earning claims disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook, YouTube, and Twitter.
DSSRC Administrative Closure #264
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets jewelry and other accessories regarding ten earnings claims that were disseminated on social media. All of the claims appeared on Facebook.
DSSRC Administrative Closure #263
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets clothing products regarding seven earnings claims that were disseminated on Facebook by Company salesforce members.
DSSRC Administrative Closure #262
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding fourteen product performance claims and one earnings claim disseminated on social media by Company salesforce members. The claims at issue were disseminated on Facebook and YouTube.
DSSRC Administrative Closure #261
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding ten earnings claims that were disseminated on social media by Company salesforce members. The claims at issue were all disseminated on Facebook.
DSSRC Administrative Closure #260
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct-selling company (“Company”) that markets dietary supplement products regarding six product performance claims that were disseminated on social media by the Company’s salesforce members and as well as weight-loss depictions and testimonials that appeared on the Company’s website. DSSRC expressed its concerns regarding the claims that the...
DSSRC Administrative Closure #259
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that sells women’s beauty products regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue originated from eleven social media posts disseminated on Facebook. The eleven Facebook posts included claims that salesforce members can generally...
DSSRC Administrative Closure #258
The Direct Selling Self-Regulatory Council (DSSRC) initiated an inquiry involving a direct selling company (“Company”) regarding four earnings claims disseminated by Company salesforce members on Facebook, LinkedIn, Pinterest, and YouTube. The inquiry pertained to the Company’s use of terms such as “a debt-free life,” “financial freedom,” and social media posts suggesting that the typical Company sales...
DSSRC Administrative Closure #257
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct-selling company (“Company”) that markets travel-related products regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members as well as an earnings claim made in the Company’s compensation plan on the Company’s website. The claims which were disseminated by Company salesforce members were...
DSSRC Administrative Closure #256
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding nine earnings claims that were disseminated on social media by the Company’s salesforce members on Facebook and the Company website.
DSSRC Administrative Closure #255
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims and one health-related product claim that were disseminated on social media by the Company’s salesforce members. The claims at issue were all disseminated on Facebook.
DSSRC Administrative Closure #254
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue were disseminated on Facebook, Instagram, and YouTube. DSSRC contacted the Company and expressed concern that these social media posts could be reasonably interpreted by consumers as...
DSSRC Administrative Closure #253
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding earnings claims that were disseminated on social media by the Company’s salesforce members. All of the posts at issue were disseminated on Facebook. DSSRC contacted the Company and expressed concern that these social media posts could be reasonably interpreted by consumers as meaning that the typical...
DSSRC Administrative Closure #252
The Direct Selling Self-Regulatory Council (DSSRC) opened an inquiry with a direct selling company (the “Company”) regarding certain earnings claims disseminated on social media by the Company’s salesforce members. The claims at...
DSSRC Administrative Closure #251
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims and health-related claims that were disseminated on social media by the Company’s salesforce...
DSSRC Administrative Closure #250
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. All but one of the...
DSSRC Administrative Closure #249
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct-selling company (“Company”) that sells wellness products regarding certain product and earnings claims that were disseminated on social media by the Company’s...
DSSRC Administrative Closure #248
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue included...
DSSRC Administrative Closure #247
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue were all disseminated on Facebook. DSSRC contacted the Company and expressed concern that these social media posts could be reasonably interpreted by consumers as meaning that the...
DSSRC Administrative Closure #246
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct-selling company (“Company”) that sells cosmetic products regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The posts were identified as part of DSSRC’s ongoing monitoring process, which found thirteen posts on Facebook, YouTube, and Twitter.
DSSRC Administrative Closure #245
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct-selling company (“Company”) that sells several brands of weight-loss and nutritional wellness products regarding certain earnings claims and health-related product claims that were disseminated on social media by the Company’s salesforce members. The posts were identified as part of DSSRC’s ongoing monitoring process, which found three...
DSSRC Administrative Closure #244
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DSSRC Administrative Closure #230
The Direct Selling Self-Regulatory Council (DSSRC) initiated an inquiry involving a direct selling company (“Company”) regarding six earnings claims disseminated by Company salesforce members on Facebook, Twitter and YouTube. The claims identified by DSSRC included, but were not limited to, “earn 4 to 5 figures income,” “you decide your income,” “I paid off my entire family’s medical bills,” “I just paid...
DSSRC Administrative Closure #229
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DSSRC Administrative Closure #216
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a company (“Company”) regarding eighteen social media posts disseminated on Facebook and YouTube that were identified pursuant to its monitoring of the direct selling industry. Fifteen of the social media posts made health-related claims regarding skin conditions such as, but not limited to, eczema and psoriasis. DSSRC was also concerned that...
DSSRC Administrative Closure #215
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding four social media posts disseminated on Facebook that were identified pursuant to its monitoring of the direct selling industry. Three of the posts included references to the ability for Company salesforce members to earn full time income. In addition, the remaining post referenced the COVID-19...
DSSRC Administrative Closure #214
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding four social media posts disseminated on Facebook and one YouTube video that were identified pursuant to its monitoring of the direct selling industry. DSSRC expressed its concern to the Company that all five posts communicated atypical earnings claims regarding the amount of income that could be...
DSSRC Administrative Closure #213
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding five social media posts disseminated on Facebook and one YouTube video that were identified pursuant to its monitoring of the direct selling industry. The Facebook posts included references to the efficacy of the Company’s products to treat several health-related conditions including arthritis and...
DSSRC Administrative Closure #212
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a company (“Company”) regarding thirteen social media posts disseminated on Facebook that were identified pursuant to its monitoring of the direct selling industry. The posts included references to, among other things, the Company’s “unlimited income potential” and how salesforce members can earn “$1,000 a month,” become “financially...
DSSRC Administrative Closure #211
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding three social media posts disseminated on YouTube, Facebook, and TikTok. DSSRC was concerned that these posts may be reasonably interpreted as communicating that by partaking in the Company’s business opportunity, salesforce members would earn a substantial income. The posts were identified by DSSRC...
DSSRC Administrative Closure #210
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DSSRC Administrative Closure #201
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding five social media posts that DSSRC was concerned were communicating inappropriate earnings claims. The posts included references such as “replace another income,” “full-time opportunity,” “travel for free,” “what would you do with an extra $500 a month?”, and “looking for a new career or...
DSSRC Administrative Closure #200
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DSSRC Administrative Closure #192
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding three social media posts disseminated by company salesforce members that communicated health-related product claims. In addition, DSSRC also inquired regarding certain earnings claims that appeared on the Company’s website as well as earnings claims disseminated by salesforce members on social...
DSSRC Administrative Closure #191
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DSSRC Administrative Closure #185
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding one social media post disseminated by a company salesforce member. Some of the language in the post made an atypical representation regarding the level of income that a salesforce member could expect to earn from the Company’s business opportunity. The post was identified by DSSRC pursuant to...
DSSRC Administrative Closure #184
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding six social media posts. The inquiry involved a number of health-related posts which included claims that the Company’s products can treat Alzheimer’s disease and cancer and prevent diabetes and strokes. The posts were identified by DSSRC pursuant to its ongoing, independent monitoring of the...
DSSRC Administrative Closure #183
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding nine social media posts. DSSRC was concerned that these posts made both explicit and implied claims that typical salesforce members of the Company could generally expect to earn significant, full-time, or career replacement income through participating in the Company’s business opportunity. The...
DSSRC Administrative Closure #182
DSSRC Administrative Closure #181
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding one social media post that was disseminated by a salesforce member of the Company. DSSRC was concerned that the post communicated that a typical salesforce member will earn a significant amount of income from the Company’s business opportunity.
DSSRC Administrative Closure #180
DSSRC Administrative Closure #179
DSSRC Administrative Closure #178
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding four social media posts that conveyed the message that the Company's products can treat several serious health-related conditions including diabetes and autism. DSSRC was also concerned that some of the social media posts communicated the message that salesforce members can generally expect to...
DSSRC Administrative Closure #177
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DSSRC Administrative Closure #170
DSSRC contacted a direct selling company regarding three social media posts disseminated by salesforce members that communicated the efficacy of the Company’s products to treat ADHD in children, COVID-19 and other health-related conditions. The social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace.
DSSRC Administrative Closure #169
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding three social media posts that DSSRC was concerned conveyed, either through depictions or accompanying text, that the Company’s salesforce members can earn a significant income through the Company’s business opportunity.
DSSRC Administrative Closure #168
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding four social media posts that DSSRC was concerned contained health-related product claims including statements that the Company’s products could prevent, treat, or cure COVID-19. DSSRC identified the subject social media posts that were made by Company salesforce members through its ongoing...
DSSRC Administrative Closure #167
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DSSRC Administrative Closure #161
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding four Facebook posts that were disseminated by salesforce members of the Company. All four of the post conveyed strong health-related product claims including the message that the Company’s products were effective to treat serious health conditions such as COVID-19, ADHD, dementia, Alzheimer’s...
DSSRC Administrative Closure #160
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding social media posts that were disseminated by salesforce members. The subject claims and social media posts came to DSSRC’s attention through its independent monitoring of advertising in the direct selling marketplace.
DSSRC Administrative Closure #159
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding four Facebook posts that were disseminated by Company salesforce members. All four of the posts made reference to prospective salesforce members being able to “replace lost income” through the Company’s business opportunity and one of the posts included an implied reference to achieving...
DSSRC Administrative Closure #158
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DSSRC Administrative Closure #149
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding one Facebook post and two TikTok posts disseminated by salesforce members of the Company. DSSRC was concerned that the Facebook post conveyed disease treatment claims and that the TikTok posts contained strong health-related product performance claims including claims that the Company’s...
DSSRC Administrative Closure #148
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DSSRC Administrative Closure #138
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding two Facebook posts disseminated by salesforce members. DSSRC was concerned that one of the posts conveyed claims that the Company’s products can protect against disease including express claims stating that the salesforce member is “COVID free” and the products being a “pandemic response.”...
DSSRC Administrative Closure #137
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DSSRC Administrative Closure #116
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding six posts made on social media by Company salesforce members. DSSRC was concerned that the social media posts disseminated by these Company salesforce members included unsubstantiated product, health and wellness benefits including claims that the Company’s products can protect against...
DSSRC Administrative Closure #115
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding two Facebook posts by Company salesforce members that referenced serious health-related conditions that purportedly could be addressed by use of the Company’s products.
DSSRC Administrative Closure #114
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding two Facebook posts making claims about the Company’s products. The Facebook posts were disseminated by a Company salesforce member and a former salesforce member of the Company. The social media posts were identified during DSSRC’s monitoring of the...
DSSRC Administrative Closure #113
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding three Facebook posts disseminated by Company salesforce members that were identified during DSSRC’s monitoring of the direct selling industry. DSSRC expressed its concern to the Company that all of the posts implied that the Company products are effective to treat a number of health-related...
DSSRC Administrative Closure #112
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding three Facebook posts that were identified during DSSRC’s monitoring of the direct selling industry and disseminated by Company salesforce members.
DSSRC Administrative Closure #111
DSSRC Administrative Closure #110
DSSRC Administrative Closure #109
DSSRC Administrative Closure #108
The Direct Selling Self-Regulatory Council (“DSSRC”) commenced an inquiry with a direct selling company (“Company”) regarding three Facebook posts disseminated by Company salesforce members.
DSSRC Administrative Closure #107
DSSRC Administrative Closure #106
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) about three Facebook posts disseminated by salesforce members of the Company. Two of the posts in question implied that the Company’s nutritional products could help individuals that consume such products fight viruses including COVID-19. The other post made specific health-related product efficacy claims...
DSSRC Administrative Closure #105
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) about two Facebook posts disseminated by salesforce members of the Company. The posts in question implied that engaging in direct selling of the Company’s products could provide replacement income for those out of work due to COVID and/or a new career during the current public health crisis.
DSSRC Administrative Closure #104
DSSRC Administrative Closure #103
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (Company) regarding three Facebook posts disseminated by its 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 Administrative Closure #102
DSSRC Administrative Closure #101
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (Company) regarding three coronavirus related hashtags that accompanied a post stating that the Company’s product can strengthen the immune system. Earlier this year, the Federal Trade Commission (FTC) stated that coronavirus related claims and hashtags when coupled with claims that a product can strengthen or boost the...
DSSRC Administrative Closure #100
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding two Facebook posts and one Instagram post disseminated by Company salesforce members. All three posts referenced the ability of the direct selling company’s product to prevent and eliminate the coronavirus.
DSSRC Administrative Closure #99
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company regarding three Facebook post disseminated by its 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 Administrative Closure #98
DSSRC Administrative Closure #97
DSSRC Administrative Closure #96
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding three Facebook posts disseminated by salesforce members that included claims that the Company’s products can assist in treating a number of serious health-related conditions including, but not limited to, Alzheimer’s, Parkinson’s disease and Multiple Sclerosis.
DSSRC Administrative Closure #95
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DSSRC Administrative Closure #80
DSSRC contacted a direct selling company regarding two Facebook 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 posts conveyed the unsupported health-related message that the Company’s direct selling products can protect...
DSSRC Administrative Closure #79
DSSRC contacted a direct selling company regarding three 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 concerns that the posts conveyed unsupported product, health and wellness benefits and the message that the Company’s...
DSSRC Administrative Closure #78
DSSRC Administrative Closure #77
DSSRC Administrative Closure #76
Social media advertising for a direct selling company that markets health and wellness products came to the attention of the Direct Selling Self-Regulatory Council (DSSRC) pursuant to its monitoring of the direct selling industry. DSSRC identified three Facebook posts that were disseminated by Company salesforce members as communicating egregious health-related claims. One post stated “build your immune...
DSSRC Administrative Closure #75
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DSSRC Administrative Closure #71
DSSRC Administrative Closure #70
DSSRC contacted a direct selling company about two Facebook posts disseminated by the company’s salesforce members that conveyed product performance stating and/or implying that the company’s products can help prevent or treat COVID-19. Both posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace.
DSSRC Administrative Closure #69
DSSRC contacted a direct selling company about two YouTube videos disseminated by the company’s salesforce members that conveyed product performance claims while referencing the current global pandemic. Both videos came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace.
DSSRC Administrative Closure #68
DSSRC contacted a direct selling company about two social media posts disseminated by the company’s salesforce members that conveyed product performance claims. Both social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace.
DSSRC Administrative Closure #67
DSSRC contacted a direct selling company about certain social media posts disseminated by salesforce members regarding product efficacy claims that referenced “Corona Virus.” DSSRC also identified more general product claims regarding viruses that DSSRC was concerned could be reasonably interpreted could be reasonably interpreted as meaning that the company’s products are effective against the...
DSSRC Administrative Closure #66
DSSRC contacted a direct selling company about three social media posts disseminated by salesforce members regarding business opportunities during the pandemic. The social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace.
DSSRC Administrative Closure #65
DSSRC contacted a direct selling company about three business opportunity posts disseminated by salesforce members. The social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace.
DSSRC Administrative Closure #64
DSSRC contacted a direct selling company about three social media post disseminated by salesforce members. The 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 social media posts conveyed unsubstantiated product health and wellness benefit claims related to the current COVID-19...
DSSRC Administrative Closure #63
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DSSRC Administrative Closure #52
DSSRC contacted a direct selling company about four 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 social media posts conveyed unsubstantiated product, health and wellness benefits that the Company’s direct...
DSSRC Administrative Closure #51
DSSRC Administrative Closure #50
DSSRC Administrative Closure #49
DSSRC Administrative Closure #48
DSSRC contacted a direct selling company about a social media post disseminated by a salesforce member. The subject social media post came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. Specifically, DSSRC expressed concern that the social media post conveyed unsubstantiated product, health and wellness benefits that the Company’s direct selling...
DSSRC Administrative Closure #47
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DSSRC Administrative Closure #44
DSSRC Administrative Closure #43
DSSRC Administrative Closure #42
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 concerns that two of the social media posts conveyed unsubstantiated product, health and wellness benefits that the Company’s...
DSSRC Administrative Closure #41
DSSRC Administrative Closure #40
DSSRC Administrative Closure #39
DSSRC contacted a direct selling company about thirty-five 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 concerns that thirty-three of the social media posts...
DSSRC Administrative Closure #38
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DSSRC Administrative Closure #32
Social media posts disseminated by distributors for a multi-level company came to the attention of the Direct Selling Self-Regulatory Council (DSSRC) pursuant to its internal monitoring process. More specifically, one Instagram post...
DSSRC Administrative Closure #31
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DSSRC Administrative Closure #18
In 2019, DSSRC contacted a direct selling company regarding several earnings claims on the direct selling company’s website as well as claims that were being disseminated by the company’s salesforce on social media.
DSSRC Administrative Closure #17
DSSRC contacted a direct selling company (the “Company”) about earnings claims disseminated on the Company’s website and on social media by salesforce members. Specifically, DSSRC identified a number of express and implied earnings claim that referenced financial freedom, exorbitant bonuses and vacations, luxury cars, the ability to pay off college loans and generous reward programs. The advertising also...
DSSRC Administrative Closure #16
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DSSRC Administrative Closure #11
In 2020, a direct selling company contacted DSSRC seeking guidance regarding company events at which top distributors are recognized. The direct selling company stated that it had previously presented some of its highest performing distributors with oversized checks at the event but, since the success of those top distributors was not typical, it was concerned that the oversized checks might convey an...
DSSRC Administrative Closure #10
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DSSRC Administrative Closure #2
DSSRC opened an inquiry with a direct selling company regarding Instagram and Facebook posts made by the Company salesforce regarding claims of achieving “financial freedom,” a claim stating that potential recruits can “earn the income that want,” an unqualified claim of atypical earnings and an unqualified claim regarding company incentive trips.
DSSRC Administrative Closure #1
The Direct Selling Self-Regulatory Council (DSSRC) inquired with a direct selling company regarding twos social media posts disseminated by members of the Company salesforce. The first claim appeared on Instagram and stated that that the salesforce member was able to more than replace her salary from here previous, full-time job.