Direct Selling Self-Regulation Council

DSSRC Case Decisions and Administrative Closures

Case Decisions

DSSRC Administrative Closure #66

DSSRC contacted a direct selling company about three social media posts disseminated by salesforce members regarding business opportunities during the pandemic. The social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace.

The first post asked readers what kind of financial situation they were in during the pandemic and extended an invitation to join the Company team to maximize their potential to earn income. A second post made a similar solicitation, using language that the business opportunity would be guaranteed to help them financially throughout the pandemic. The third post identified by DSSRC stated that incoming salesforce members could “take charge of” and replace their income. The post referenced these “scary times” and implored readers to take care of their financial situation, noting that they could sell product and make money right away.

The Company immediately removed the third post while noting that the first two social media posts were made by salesforce members on another continent. Nevertheless, the Company indicated to DSSRC that it was in the process of contacting distributors responsible for the messages to have the posts removed and provided DSSRC with a copy of the correspondence. The Company also indicated that if the salesforce members did not take the appropriate remedial actions to address the posts they would be fined or even have their accounts terminated.

DSSRC expressed its appreciation to the Company for its due diligence in addressing DSSRC’s concerns and the bona fide, good faith efforts to educate its salesforce. As a result of the prompt actions taken by the Company, DSSRC administratively closed the inquiry.

(closed on 8/7/2020)

 

 

 

 

Administrative Closure Summaries

 

DSSRC Administrative Closure #66

DSSRC contacted a direct selling company about three social media posts disseminated by salesforce members regarding business opportunities during the pandemic. The social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace.

The first post asked readers what kind of financial situation they were in during the pandemic and extended an invitation to join the Company team to maximize their potential to earn income. A second post made a similar solicitation, using language that the business opportunity would be guaranteed to help them financially throughout the pandemic. The third post identified by DSSRC stated that incoming salesforce members could “take charge of” and replace their income. The post referenced these “scary times” and implored readers to take care of their financial situation, noting that they could sell product and make money right away.

The Company immediately removed the third post while noting that the first two social media posts were made by salesforce members on another continent. Nevertheless, the Company indicated to DSSRC that it was in the process of contacting distributors responsible for the messages to have the posts removed and provided DSSRC with a copy of the correspondence. The Company also indicated that if the salesforce members did not take the appropriate remedial actions to address the posts they would be fined or even have their accounts terminated.

DSSRC expressed its appreciation to the Company for its due diligence in addressing DSSRC’s concerns and the bona fide, good faith efforts to educate its salesforce. As a result of the prompt actions taken by the Company, DSSRC administratively closed the inquiry.

(closed on 8/7/2020)

DSSRC Administrative Closure #66

DSSRC contacted a direct selling company about three social media posts disseminated by salesforce members regarding business opportunities during the pandemic. The social media posts came to DSSRC’s attention pursuant to its independent monitoring of advertising in the direct selling marketplace.

The first post asked readers what kind of financial situation they were in during the pandemic and extended an invitation to join the Company team to maximize their potential to earn income. A second post made a similar solicitation, using language that the business opportunity would be guaranteed to help them financially throughout the pandemic. The third post identified by DSSRC stated that incoming salesforce members could “take charge of” and replace their income. The post referenced these “scary times” and implored readers to take care of their financial situation, noting that they could sell product and make money right away.

The Company immediately removed the third post while noting that the first two social media posts were made by salesforce members on another continent. Nevertheless, the Company indicated to DSSRC that it was in the process of contacting distributors responsible for the messages to have the posts removed and provided DSSRC with a copy of the correspondence. The Company also indicated that if the salesforce members did not take the appropriate remedial actions to address the posts they would be fined or even have their accounts terminated.

DSSRC expressed its appreciation to the Company for its due diligence in addressing DSSRC’s concerns and the bona fide, good faith efforts to educate its salesforce. As a result of the prompt actions taken by the Company, DSSRC administratively closed the inquiry.

(closed on 8/7/2020)