Direct Selling Self-Regulation Council

DSSRC Case Decisions and Administrative Closures

Case Decisions

DSSRC Administrative Closure #54

DSSRC contacted a direct selling company about five social media posts disseminated by its salesforce members. The subject social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. Specifically, DSSRC expressed concern that three of the social media posts conveyed unsubstantiated product, health and wellness benefits that the Company’s direct selling products can protect against COVID-19 and various other health related ailments/conditions. DSSRC also expressed concern that the remaining two posts conveyed unsubstantiated earnings claims.

The three product claims in question all contained general boost your immune system claims, asserting that the Company’s products can help individuals boost their immune system and protect against the current COVID-19 pandemic. The first of the two earnings claims posts alleged that by joining the Company’s independent sales team individuals would be able to make extra payments towards their personal expenses (i.e. car payments) each month. The second post referenced the current COVID-19 pandemic stating that the independent distributor now has two sources of income and how much that has helped her during the current pandemic.

In response to DSSRC’s inquiry, the Company was appreciative of DSSRC bringing these issues to their attention and informed DSSRC that educating their distributors about the Company’s policies in regard to the use of product and earnings claims is very important. The Company has a compliance team that actively works on identifying and removing any posts in violation of the Company’s policies. The Company acted swiftly in contacting the independent distributors and removed all five of the posts.

DSSRC expressed its appreciation to the Company for its efforts in removing the post. As a result of the prompt actions taken by the Company, DSSRC administratively closed the inquiry.

(closed 7/13/2020)
 

 

 

 

Administrative Closure Summaries

 

DSSRC Administrative Closure #54

DSSRC contacted a direct selling company about five social media posts disseminated by its salesforce members. The subject social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. Specifically, DSSRC expressed concern that three of the social media posts conveyed unsubstantiated product, health and wellness benefits that the Company’s direct selling products can protect against COVID-19 and various other health related ailments/conditions. DSSRC also expressed concern that the remaining two posts conveyed unsubstantiated earnings claims.

The three product claims in question all contained general boost your immune system claims, asserting that the Company’s products can help individuals boost their immune system and protect against the current COVID-19 pandemic. The first of the two earnings claims posts alleged that by joining the Company’s independent sales team individuals would be able to make extra payments towards their personal expenses (i.e. car payments) each month. The second post referenced the current COVID-19 pandemic stating that the independent distributor now has two sources of income and how much that has helped her during the current pandemic.

In response to DSSRC’s inquiry, the Company was appreciative of DSSRC bringing these issues to their attention and informed DSSRC that educating their distributors about the Company’s policies in regard to the use of product and earnings claims is very important. The Company has a compliance team that actively works on identifying and removing any posts in violation of the Company’s policies. The Company acted swiftly in contacting the independent distributors and removed all five of the posts.

DSSRC expressed its appreciation to the Company for its efforts in removing the post. As a result of the prompt actions taken by the Company, DSSRC administratively closed the inquiry.

(closed 7/13/2020)

DSSRC Administrative Closure #54

DSSRC contacted a direct selling company about five social media posts disseminated by its salesforce members. The subject social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace. Specifically, DSSRC expressed concern that three of the social media posts conveyed unsubstantiated product, health and wellness benefits that the Company’s direct selling products can protect against COVID-19 and various other health related ailments/conditions. DSSRC also expressed concern that the remaining two posts conveyed unsubstantiated earnings claims.

The three product claims in question all contained general boost your immune system claims, asserting that the Company’s products can help individuals boost their immune system and protect against the current COVID-19 pandemic. The first of the two earnings claims posts alleged that by joining the Company’s independent sales team individuals would be able to make extra payments towards their personal expenses (i.e. car payments) each month. The second post referenced the current COVID-19 pandemic stating that the independent distributor now has two sources of income and how much that has helped her during the current pandemic.

In response to DSSRC’s inquiry, the Company was appreciative of DSSRC bringing these issues to their attention and informed DSSRC that educating their distributors about the Company’s policies in regard to the use of product and earnings claims is very important. The Company has a compliance team that actively works on identifying and removing any posts in violation of the Company’s policies. The Company acted swiftly in contacting the independent distributors and removed all five of the posts.

DSSRC expressed its appreciation to the Company for its efforts in removing the post. As a result of the prompt actions taken by the Company, DSSRC administratively closed the inquiry.

(closed 7/13/2020)