Direct Selling Self-Regulation Council

DSSRC Case Decisions and Administrative Closures

Case Decisions

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 independent” and achieve “flexible financial freedom” through the Company’s business opportunity.

DSSRC was concerned that these posts may be reasonably interpreted as communicating that Company salesforce members would earn a substantial income through its participation in the Company’s business opportunity.

Following its receipt of DSSRC’s notice of inquiry, DSSRC was informed that the Company has been closed since 2019. DSSRC confirmed that all of the social media postings at issue, while still accessible to consumers, were disseminated prior to the Company closing business operations in 2019 .

Pursuant to section 1(B) of the DSSRC Policy and Procedures, DSSRC shall consider matters related to earnings claim (including income or lifestyle representations) and product claims made by any direct selling company (i.e. companies who sell their products and services directly to consumers through an independent salesforce) and their salesforces. Accordingly, as the Company has ceased business operations, the matter has been deemed moot and DSSRC administratively closed the inquiry.

(Administrative Closure #212, closed on December 6, 2021) 
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Administrative Closure Summaries

 

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 independent” and achieve “flexible financial freedom” through the Company’s business opportunity.

DSSRC was concerned that these posts may be reasonably interpreted as communicating that Company salesforce members would earn a substantial income through its participation in the Company’s business opportunity.

Following its receipt of DSSRC’s notice of inquiry, DSSRC was informed that the Company has been closed since 2019. DSSRC confirmed that all of the social media postings at issue, while still accessible to consumers, were disseminated prior to the Company closing business operations in 2019 .

Pursuant to section 1(B) of the DSSRC Policy and Procedures, DSSRC shall consider matters related to earnings claim (including income or lifestyle representations) and product claims made by any direct selling company (i.e. companies who sell their products and services directly to consumers through an independent salesforce) and their salesforces. Accordingly, as the Company has ceased business operations, the matter has been deemed moot and DSSRC administratively closed the inquiry.

(Administrative Closure #212, closed on December 6, 2021) 
© 2021 BBB National Programs

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 independent” and achieve “flexible financial freedom” through the Company’s business opportunity.

DSSRC was concerned that these posts may be reasonably interpreted as communicating that Company salesforce members would earn a substantial income through its participation in the Company’s business opportunity.

Following its receipt of DSSRC’s notice of inquiry, DSSRC was informed that the Company has been closed since 2019. DSSRC confirmed that all of the social media postings at issue, while still accessible to consumers, were disseminated prior to the Company closing business operations in 2019 .

Pursuant to section 1(B) of the DSSRC Policy and Procedures, DSSRC shall consider matters related to earnings claim (including income or lifestyle representations) and product claims made by any direct selling company (i.e. companies who sell their products and services directly to consumers through an independent salesforce) and their salesforces. Accordingly, as the Company has ceased business operations, the matter has been deemed moot and DSSRC administratively closed the inquiry.

(Administrative Closure #212, closed on December 6, 2021) 
© 2021 BBB National Programs