Direct Selling Self-Regulatory Council Refers Health-Related Product Claims by New U Life, Inc. to the Federal Trade Commission and the Food and Drug Administration

The Direct Selling Self-Regulatory Council (“DSSRC”) has referred certain health-related claims made by New U Life, Inc. (“New U Life” or the “Company”) for its Somaderm hGH transdermal gel to the Federal Trade Commission (FTC) and the Food and Drug Administration (FDA) for possible enforcement action after the Company failed to comply with DSSRC’s recommendations to modify or discontinue such claims. The health-related product claims at issue in DSSRC’s inquiry pertained to product efficacy as well as claims that Somaderm product was “FDA Registered” and that the product had clinical applications. In addition, the DSSRC inquiry also included a number of additional health-related claims (e.g., “Regrowth of heart, liver, spleen, kidney and other organs that shrink with age”; “14.4% loss of fat on average after six months without dieting”; “Superior immune function”; “Greater cardiac output”; “Superior immune function,” etc.) and a number of before-and-after depictions purportedly demonstrating the results received from using the product.

Direct Selling Self-Regulatory Council Refers Income and Incentive Trip Claims to the Federal Trade Commission

New York, NY – October 21, 2019 –The Direct Selling Self-Regulatory Council (“DSSRC”) has referred certain marketing claims made by MojiLife, LLC (“MojiLife” or the “Company”) for its home fragrance products to the Federal Trade Commission for possible enforcement action after the Company failed to fully participate in the self-regulatory process. At issue in DSSRC’s inquiry were income representations concerning the amount of money that MojiLife distributors could reasonably expect to earn from selling the Company’s products as well as claims regarding incentive trips that could be earned by distributors of the Company. 

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Direct Selling Self-Regulatory Council Refers Health-Related Product Claims and Income Representations by Aloe Veritas, Inc. to the Federal Trade Commission

The Direct Selling Self-Regulatory Council (“DSSRC”) has referred certain marketing claims made by Aloe Veritas, Inc. (“Aloe Veritas” or the “Company”) for its wellness and skincare products to the Federal Trade Commission for possible enforcement action after the Company failed to provide a statement indicating whether it will comply with DSSRC’s recommendations to modify or discontinue such claims. 

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Direct Selling Self-Regulatory Council Established to Proactively Increase Oversight of Direct Sellers

A new industry self-regulatory program will actively monitor the direct-selling marketplace to help “ensure high standards of integrity and business ethics as the guiding principles for all direct selling companies in the marketplace.” The Direct Selling Self-Regulatory Council (DSSRC) was created by the Direct Selling Association (DSA) and will administered by the Council of Better Business Bureaus (CBBB).

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