Direct Selling Self-Regulation Council

DSSRC Case Decisions and Administrative Closures

Case Decisions

DSSRC Administrative Closure #217

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding four earnings claims disseminated by salesforce members of the Company on social media. During the pendency of DSSRC’s inquiry, DSSRC identified four additional earnings claims that were disseminated by salesforce members of the Company on social media and brought those claims to the Company’s attention. DSSRC expressed its concern to the Company that the claims carried a high risk of being misleading to consumers and included promises of, among other things, “full-time income.”

The Company promptly responded to DSSRC’s inquiry. The Company contacted the salesforce members responsible for the social media posts and was able to have all but two of the social media posts removed. The Company informed DSSRC that it would continue its efforts to seek removal of the remaining claims including suspending or terminating the salesforce members responsible for the posts. With respect to the remaining posts, the Company also contacted the social media platform where such posts were disseminated and requested their removal.

Accordingly, based on the Company’s actions, DSSRC administratively closed the inquiry pursuant to the DSSRC Policy & Procedures. DSSRC informed the Company that it will continue to monitor the remaining claims as well as other marketing claims made by the Company and its salesforce members and initiate a compliance proceeding if necessary.

(Administrative Closure #217, closed on January 21, 2022)
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Administrative Closure Summaries

 

DSSRC Administrative Closure #217

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding four earnings claims disseminated by salesforce members of the Company on social media. During the pendency of DSSRC’s inquiry, DSSRC identified four additional earnings claims that were disseminated by salesforce members of the Company on social media and brought those claims to the Company’s attention. DSSRC expressed its concern to the Company that the claims carried a high risk of being misleading to consumers and included promises of, among other things, “full-time income.”

The Company promptly responded to DSSRC’s inquiry. The Company contacted the salesforce members responsible for the social media posts and was able to have all but two of the social media posts removed. The Company informed DSSRC that it would continue its efforts to seek removal of the remaining claims including suspending or terminating the salesforce members responsible for the posts. With respect to the remaining posts, the Company also contacted the social media platform where such posts were disseminated and requested their removal.

Accordingly, based on the Company’s actions, DSSRC administratively closed the inquiry pursuant to the DSSRC Policy & Procedures. DSSRC informed the Company that it will continue to monitor the remaining claims as well as other marketing claims made by the Company and its salesforce members and initiate a compliance proceeding if necessary.

(Administrative Closure #217, closed on January 21, 2022)
© 2022 BBB National Programs

DSSRC Administrative Closure #217

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding four earnings claims disseminated by salesforce members of the Company on social media. During the pendency of DSSRC’s inquiry, DSSRC identified four additional earnings claims that were disseminated by salesforce members of the Company on social media and brought those claims to the Company’s attention. DSSRC expressed its concern to the Company that the claims carried a high risk of being misleading to consumers and included promises of, among other things, “full-time income.”

The Company promptly responded to DSSRC’s inquiry. The Company contacted the salesforce members responsible for the social media posts and was able to have all but two of the social media posts removed. The Company informed DSSRC that it would continue its efforts to seek removal of the remaining claims including suspending or terminating the salesforce members responsible for the posts. With respect to the remaining posts, the Company also contacted the social media platform where such posts were disseminated and requested their removal.

Accordingly, based on the Company’s actions, DSSRC administratively closed the inquiry pursuant to the DSSRC Policy & Procedures. DSSRC informed the Company that it will continue to monitor the remaining claims as well as other marketing claims made by the Company and its salesforce members and initiate a compliance proceeding if necessary.

(Administrative Closure #217, closed on January 21, 2022)
© 2022 BBB National Programs