DSSRC Administrative Closure #61
contacted a direct selling company about three 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 two of the social media posts conveyed unsubstantiated product health and wellness benefit claims related to the current COVID-19 pandemic. DSSRC also expressed concern that the third post conveyed unsubstantiated earnings claims that individuals could make a minimum level of income.
The first post in question stated that the Company’s products can help boost your immune system. Additionally, the post also claimed that an individual who is considered high-risk has been using the Company’s product to stay safe and healthy during the current COVID-19 pandemic. The second product claim post stated that the Company’s products could help boost your immune system.
The earnings claim post was disseminated in order to recruit individuals to join the independent distributor’s team. The post asked what people would be able to do with and additional income of up to $10,000 a month.
In response to DSSRC’s inquiry, the Company informed DSSRC that all three posts have been deleted and each individual has been contacted. The Company has given each independent distributor guidance on how to properly post advertisements in the future and informed each distributor of possible disciplinary actions if they violate the Company’s policies again. The Company’s policies and procedures prohibits independent distributors from making any claims that are not endorsed by the Company’s official literature. The Company also told DSSRC that they have an internal Compliance team that uses a monitoring software to identify any non-compliant social media 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.