Direct Selling Self-Regulation Council

DSSRC Case Decisions and Administrative Closures

Case Decisions

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 and depression, among other maladies. 

DSSRC originally did not receive a response to its inquiry due to changes in personnel at the Company headquarters. Subsequently, the Company reached out to DSSRC and immediately engaged in a substantive conversation which resulted in the prompt removal of the four Facebook posts.

DSSRC was encouraged by the commitment demonstrated by the Company’s new compliance team and administratively closed the matter based upon the good faith actions of the Company to address its concerns. DSSRC informed the Company that it would continue to closely monitor the messages being communicated on social media by the Company’s salesforce members and would commence a formal self-regulatory inquiry should it appear that the Company or its salesforce members continue to disseminate the same or similar serious disease claims in the future.

(closed on 4/23/2021)
 

 

 

 

Administrative Closure Summaries

 

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 and depression, among other maladies. 

DSSRC originally did not receive a response to its inquiry due to changes in personnel at the Company headquarters. Subsequently, the Company reached out to DSSRC and immediately engaged in a substantive conversation which resulted in the prompt removal of the four Facebook posts.

DSSRC was encouraged by the commitment demonstrated by the Company’s new compliance team and administratively closed the matter based upon the good faith actions of the Company to address its concerns. DSSRC informed the Company that it would continue to closely monitor the messages being communicated on social media by the Company’s salesforce members and would commence a formal self-regulatory inquiry should it appear that the Company or its salesforce members continue to disseminate the same or similar serious disease claims in the future.

(closed on 4/23/2021)

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 and depression, among other maladies. 

DSSRC originally did not receive a response to its inquiry due to changes in personnel at the Company headquarters. Subsequently, the Company reached out to DSSRC and immediately engaged in a substantive conversation which resulted in the prompt removal of the four Facebook posts.

DSSRC was encouraged by the commitment demonstrated by the Company’s new compliance team and administratively closed the matter based upon the good faith actions of the Company to address its concerns. DSSRC informed the Company that it would continue to closely monitor the messages being communicated on social media by the Company’s salesforce members and would commence a formal self-regulatory inquiry should it appear that the Company or its salesforce members continue to disseminate the same or similar serious disease claims in the future.

(closed on 4/23/2021)