Direct Selling Self-Regulation Council

DSSRC Case Decisions and Administrative Closures

Case Decisions

DSSRC Administrative Closure #78

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding a Pinterest post and a claim on the company website, both of which referenced a business opportunity at the Company with unlimited income potential. More specifically, the Pinterest post featured a photograph of scattered $100 bills and the promise of glamourous trips, extra cash and unlimited income. In addition, in its description of the business opportunity on the Company website, the Company makes reference to “no limits” on earnings and the significant income opportunity provided by the Company.

Shortly after receipt of the inquiry, the Company informed DSSRC that it modified the reference to the unlimited income opportunity to state that business opportunity can, instead, provide “supplemental” income. In addition, the Company advised DSSRC that it had removed the Pinterest post from social media.

DSSRC expressed its appreciation to the Company for its voluntary actions and noted that section 5(a) of the DSSRC Guidance for Earning Claims in the Direct Selling Industry states that claims suggesting that potential salesforce members can realize unlimited income are prohibited earnings representations and, as such, the Company’s actions to remove the Pinterest post and revisions to the language on the Company website was necessary and appropriate.

Based upon the Company’s immediate remedial actions to address DSSRC’s concerns, the inquiry was administratively closed pursuant to section 2(II)(6) of the DSSRC Procedures.

(closed on 10/13/2020)

 

 

 

 

Administrative Closure Summaries

 

DSSRC Administrative Closure #78

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding a Pinterest post and a claim on the company website, both of which referenced a business opportunity at the Company with unlimited income potential. More specifically, the Pinterest post featured a photograph of scattered $100 bills and the promise of glamourous trips, extra cash and unlimited income. In addition, in its description of the business opportunity on the Company website, the Company makes reference to “no limits” on earnings and the significant income opportunity provided by the Company.

Shortly after receipt of the inquiry, the Company informed DSSRC that it modified the reference to the unlimited income opportunity to state that business opportunity can, instead, provide “supplemental” income. In addition, the Company advised DSSRC that it had removed the Pinterest post from social media.

DSSRC expressed its appreciation to the Company for its voluntary actions and noted that section 5(a) of the DSSRC Guidance for Earning Claims in the Direct Selling Industry states that claims suggesting that potential salesforce members can realize unlimited income are prohibited earnings representations and, as such, the Company’s actions to remove the Pinterest post and revisions to the language on the Company website was necessary and appropriate.

Based upon the Company’s immediate remedial actions to address DSSRC’s concerns, the inquiry was administratively closed pursuant to section 2(II)(6) of the DSSRC Procedures.

(closed on 10/13/2020)

DSSRC Administrative Closure #78

The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding a Pinterest post and a claim on the company website, both of which referenced a business opportunity at the Company with unlimited income potential. More specifically, the Pinterest post featured a photograph of scattered $100 bills and the promise of glamourous trips, extra cash and unlimited income. In addition, in its description of the business opportunity on the Company website, the Company makes reference to “no limits” on earnings and the significant income opportunity provided by the Company.

Shortly after receipt of the inquiry, the Company informed DSSRC that it modified the reference to the unlimited income opportunity to state that business opportunity can, instead, provide “supplemental” income. In addition, the Company advised DSSRC that it had removed the Pinterest post from social media.

DSSRC expressed its appreciation to the Company for its voluntary actions and noted that section 5(a) of the DSSRC Guidance for Earning Claims in the Direct Selling Industry states that claims suggesting that potential salesforce members can realize unlimited income are prohibited earnings representations and, as such, the Company’s actions to remove the Pinterest post and revisions to the language on the Company website was necessary and appropriate.

Based upon the Company’s immediate remedial actions to address DSSRC’s concerns, the inquiry was administratively closed pursuant to section 2(II)(6) of the DSSRC Procedures.

(closed on 10/13/2020)