Direct Selling Self-Regulation Council

DSSRC Case Decisions and Administrative Closures

Case Decisions

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 included an unqualified express claim that the salesforce the members earned in excess of $40,000 a month and that the income opportunity could become a fulltime career. A claim on the Company website stated that a salesforce member could buy a home from income earned through direct selling the Company’s products.

The direct selling company promptly responded to DSSRC’s inquiry. With respect to the claims that had been disseminated by salesforce members on social media, the Company contacted the salesforce members in question and had all of the claims removed.

The Company also agreed to significantly modify its website. Specifically, the Company removed express claims regarding the amount of income that could be earned as well as claims regarding vacations and automobile bonuses that could earned by salesforce members. The Company replaced those express claims with more general claims such as a salesforce members ability to earning commissions on all their sales. While the Company’s website continues to reference an automobile bonus opportunity, the website now clearly and conspicuously discloses the percentage of salesforce members that enjoy such a bonus. The Company also removed claims of unlimited earning potential and full-time income.

In light of the Company’s prompt actions and significant overhaul of the Company website, DSSRC administratively closed the inquiry.

(closed on 6/25/2020)

 

 

 

 

Administrative Closure Summaries

 

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 included an unqualified express claim that the salesforce the members earned in excess of $40,000 a month and that the income opportunity could become a fulltime career. A claim on the Company website stated that a salesforce member could buy a home from income earned through direct selling the Company’s products.

The direct selling company promptly responded to DSSRC’s inquiry. With respect to the claims that had been disseminated by salesforce members on social media, the Company contacted the salesforce members in question and had all of the claims removed.

The Company also agreed to significantly modify its website. Specifically, the Company removed express claims regarding the amount of income that could be earned as well as claims regarding vacations and automobile bonuses that could earned by salesforce members. The Company replaced those express claims with more general claims such as a salesforce members ability to earning commissions on all their sales. While the Company’s website continues to reference an automobile bonus opportunity, the website now clearly and conspicuously discloses the percentage of salesforce members that enjoy such a bonus. The Company also removed claims of unlimited earning potential and full-time income.

In light of the Company’s prompt actions and significant overhaul of the Company website, DSSRC administratively closed the inquiry.

(closed on 6/25/2020)

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 included an unqualified express claim that the salesforce the members earned in excess of $40,000 a month and that the income opportunity could become a fulltime career. A claim on the Company website stated that a salesforce member could buy a home from income earned through direct selling the Company’s products.

The direct selling company promptly responded to DSSRC’s inquiry. With respect to the claims that had been disseminated by salesforce members on social media, the Company contacted the salesforce members in question and had all of the claims removed.

The Company also agreed to significantly modify its website. Specifically, the Company removed express claims regarding the amount of income that could be earned as well as claims regarding vacations and automobile bonuses that could earned by salesforce members. The Company replaced those express claims with more general claims such as a salesforce members ability to earning commissions on all their sales. While the Company’s website continues to reference an automobile bonus opportunity, the website now clearly and conspicuously discloses the percentage of salesforce members that enjoy such a bonus. The Company also removed claims of unlimited earning potential and full-time income.

In light of the Company’s prompt actions and significant overhaul of the Company website, DSSRC administratively closed the inquiry.

(closed on 6/25/2020)