Direct Selling Self-Regulation Council

DSSRC Case Decisions and Administrative Closures

Case Decisions

DSSRC Administrative Closure #27

DSSRC contacted a direct selling company about one social media post disseminated by a salesforce member. The subject social media post came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. Specifically, DSSRC expressed concern that the Facebook post disseminated by a salesforce member conveyed unsubstantiated product claims that the Company’s products can protect against COVID-19.

With respect to the Facebook post, the direct selling company determined that the product claims were posted by an active independent distributor for the company. The company took prompt action in notifying the independent distributor of the post and in requesting the post be taken down. The independent distributor acknowledged the request and promptly took the post down. The company proceeded to have a telephone conference with the independent distributor to discuss the wrongdoing and to further educate the distributor about the company’s policies and compliance program. The company confirmed that the post was in fact deleted, then issued and recorded a warning in the independent distributor’s records and closed the issue.

The company has notified DSSRC of its extensive compliance program and has also informed DSSRC that they are proactive in detecting advertising claims. The company has updated their search terms to include COVID-19 related terms and to flag these posts.

DSSRC expressed its appreciation to the Company for its expedited efforts to remove the post by the distributor suggesting that their products can treat COVID-19 and/or the symptoms associated with the condition. Based upon prompt actions taken by the Company to remove the posts, DSSRC administratively closed the inquiry.

(closed on 5/19/2020)

 

 

 

 

Administrative Closure Summaries

 

DSSRC Administrative Closure #27

DSSRC contacted a direct selling company about one social media post disseminated by a salesforce member. The subject social media post came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. Specifically, DSSRC expressed concern that the Facebook post disseminated by a salesforce member conveyed unsubstantiated product claims that the Company’s products can protect against COVID-19.

With respect to the Facebook post, the direct selling company determined that the product claims were posted by an active independent distributor for the company. The company took prompt action in notifying the independent distributor of the post and in requesting the post be taken down. The independent distributor acknowledged the request and promptly took the post down. The company proceeded to have a telephone conference with the independent distributor to discuss the wrongdoing and to further educate the distributor about the company’s policies and compliance program. The company confirmed that the post was in fact deleted, then issued and recorded a warning in the independent distributor’s records and closed the issue.

The company has notified DSSRC of its extensive compliance program and has also informed DSSRC that they are proactive in detecting advertising claims. The company has updated their search terms to include COVID-19 related terms and to flag these posts.

DSSRC expressed its appreciation to the Company for its expedited efforts to remove the post by the distributor suggesting that their products can treat COVID-19 and/or the symptoms associated with the condition. Based upon prompt actions taken by the Company to remove the posts, DSSRC administratively closed the inquiry.

(closed on 5/19/2020)

DSSRC Administrative Closure #27

DSSRC contacted a direct selling company about one social media post disseminated by a salesforce member. The subject social media post came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. Specifically, DSSRC expressed concern that the Facebook post disseminated by a salesforce member conveyed unsubstantiated product claims that the Company’s products can protect against COVID-19.

With respect to the Facebook post, the direct selling company determined that the product claims were posted by an active independent distributor for the company. The company took prompt action in notifying the independent distributor of the post and in requesting the post be taken down. The independent distributor acknowledged the request and promptly took the post down. The company proceeded to have a telephone conference with the independent distributor to discuss the wrongdoing and to further educate the distributor about the company’s policies and compliance program. The company confirmed that the post was in fact deleted, then issued and recorded a warning in the independent distributor’s records and closed the issue.

The company has notified DSSRC of its extensive compliance program and has also informed DSSRC that they are proactive in detecting advertising claims. The company has updated their search terms to include COVID-19 related terms and to flag these posts.

DSSRC expressed its appreciation to the Company for its expedited efforts to remove the post by the distributor suggesting that their products can treat COVID-19 and/or the symptoms associated with the condition. Based upon prompt actions taken by the Company to remove the posts, DSSRC administratively closed the inquiry.

(closed on 5/19/2020)