Direct Selling Self-Regulation Council

DSSRC Case Decisions and Administrative Closures

Case Decisions

DSSRC Administrative Closure #163

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding three social media posts that DSSRC was concerned contained health-related product and income claims including statements that may imply that the Company’s products could prevent, treat, or cure COVID-19. After commencement of its inquiry, DSSRC identified three additional social media posts by Company salesforce members that contained health-related product claims including an express claim regarding COVID-19.

The Company did not contest that the subject posts should not have been disseminated by members of the Company’s salesforce. The Company’s outside counsel explained to DSSRC that the Company recently retained a compliance consultant to assist the Company with training and monitoring the Company’s salesforce members as well as getting improper claims removed from circulation. Thereafter, the Company’s new compliance consultant contacted DSSRC and reported that all six social media posts that were identified by DSSRC had been removed from circulation. DSSRC independently confirmed that all six posts were in fact removed and will continue to closely monitor the monitor the message being communicated by the Company sales force members on social media.

As a result of the Company’s good faith actions to address DSSRC’s concerns, DSSRC administratively closed this inquiry.

(closed on 5/5/2021)

 

 

 

 

Administrative Closure Summaries

 

DSSRC Administrative Closure #163

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding three social media posts that DSSRC was concerned contained health-related product and income claims including statements that may imply that the Company’s products could prevent, treat, or cure COVID-19. After commencement of its inquiry, DSSRC identified three additional social media posts by Company salesforce members that contained health-related product claims including an express claim regarding COVID-19.

The Company did not contest that the subject posts should not have been disseminated by members of the Company’s salesforce. The Company’s outside counsel explained to DSSRC that the Company recently retained a compliance consultant to assist the Company with training and monitoring the Company’s salesforce members as well as getting improper claims removed from circulation. Thereafter, the Company’s new compliance consultant contacted DSSRC and reported that all six social media posts that were identified by DSSRC had been removed from circulation. DSSRC independently confirmed that all six posts were in fact removed and will continue to closely monitor the monitor the message being communicated by the Company sales force members on social media.

As a result of the Company’s good faith actions to address DSSRC’s concerns, DSSRC administratively closed this inquiry.

(closed on 5/5/2021)

DSSRC Administrative Closure #163

The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (the “Company”) regarding three social media posts that DSSRC was concerned contained health-related product and income claims including statements that may imply that the Company’s products could prevent, treat, or cure COVID-19. After commencement of its inquiry, DSSRC identified three additional social media posts by Company salesforce members that contained health-related product claims including an express claim regarding COVID-19.

The Company did not contest that the subject posts should not have been disseminated by members of the Company’s salesforce. The Company’s outside counsel explained to DSSRC that the Company recently retained a compliance consultant to assist the Company with training and monitoring the Company’s salesforce members as well as getting improper claims removed from circulation. Thereafter, the Company’s new compliance consultant contacted DSSRC and reported that all six social media posts that were identified by DSSRC had been removed from circulation. DSSRC independently confirmed that all six posts were in fact removed and will continue to closely monitor the monitor the message being communicated by the Company sales force members on social media.

As a result of the Company’s good faith actions to address DSSRC’s concerns, DSSRC administratively closed this inquiry.

(closed on 5/5/2021)