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4/19/2022 - DSSRC Administrative Closure #236
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue included fourteen (14) posts that were disseminated on Facebook and YouTube, and included unlimited income claims (e.g., “unlimited income potential”), financial freedom income claims (e.g., “it’s given me financial freedom”) and residual income claims (e.g., “residual income kind of change”). DSSRC expressed its concern to the Company that these posts communicated statements of atypical earnings regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity. -
4/19/2022 - DSSRC Administrative Closure #235
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding seven social media posts disseminated on Facebook and one Linked-In post that were identified pursuant to DSSRC’s monitoring of product and earnings claims communicated in the direct selling industry. The eight posts included claims that salesforce members can earn generally expect to earn significant income from the Company’s business opportunity, including, but not limited to, claims stating that Company salesforce members can generally expect to earn “unlimited income,” “full-time income,” “… more money than I ever imagined/” and achieve “financial freedom.” -
4/19/2022 - DSSRC Administrative Closure #234
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims and product performance claims that were disseminated on social media by the Company’s salesforce members. The claims at issue included nine (9) posts that were disseminated on Facebook, YouTube, and Twitter and included residual income (e.g., “… work on your own terms and create a residual income”) and financial freedom income claims (e.g., “Financial freedom […] change your life forever”). DSSRC expressed its concern to the Company that these posts communicated statements of atypical earnings regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity. -
4/19/2022 - DSSRC Administrative Closure #233
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims and one product performance claim that were disseminated on social media by the Company’s salesforce members. The claims at issue included sixteen (16) posts that were disseminated on Facebook and YouTube, and included unlimited income (e.g., “Unlimited income potential”) and financial freedom income claims (e.g., “Start your financial freedom now”). DSSRC expressed its concern to the Company that these posts communicated statements of atypical earnings regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity. -
4/19/2022 - DSSRC Administrative Closure #232
The Direct Selling Self-Regulatory Council (DSSRC) initiated an inquiry regarding six earnings claims and one product performance claim communicated on social media posts disseminated by salesforce members of a direct selling company (“the Company”). Six of the identified claims were disseminated on Facebook and the remaining claim was communicated on a YouTube video. -
4/19/2022 - DSSRC Administrative Closure #231
The Direct Selling Self-Regulatory Council (DSSRC) initiated an inquiry into a direct selling company (“Company”) regarding earnings claims disseminated by salesforce members of the Company on seven Facebook posts, one Twitter post and on the Company website. DSSRC expressed its concerns that the claims at issue communicated the messages that salesforce members can achieve financial freedom, take free trips and have unlimited success and free incentive rewards when participating in the Company’s business opportunity. -
4/19/2022 - DSSRC Administrative Closure #230
The Direct Selling Self-Regulatory Council (DSSRC) initiated an inquiry involving a direct selling company (“Company”) regarding six earnings claims disseminated by Company salesforce members on Facebook, Twitter and YouTube. The claims identified by DSSRC included, but were not limited to, “earn 4 to 5 figures income,” “you decide your income,” “I paid off my entire family’s medical bills,” “I just paid off ALL of my student loans” as well as a claim of replacing income.
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3/30/2022 - DSSRC Administrative Closure #229
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings and product claims that were disseminated on social media by Company salesforce members. More specifically, the earnings claims at issue in two social media posts referenced replacement income that could be realized through the Company’s business opportunity (“quit my 9-5 and made $11,500 in the first month” and “I was able to quit my 9-5 and sell over $15K in 4 weeks.”). The six social media posts that conveyed product claims (three YouTube Videos and three Facebook posts) all pertained to the efficacy of the company’s product to provide protection to consumers against COVID-19. -
3/30/2022 - DSSRC Administrative Closure #228
The Direct Selling Self-Regulatory Council (DSSRC) initiated an inquiry into a direct selling company (“Company”) regarding earnings claims disseminated by salesforce members of the Company on social media. The social media posts at issue included claims that salesforce members could earn full-time income, and/or substantial amounts of money in a short time, obtain financial freedom, and be their own boss. DSSRC expressed its concern to the Company that such social media posts may be reasonably interpreted as communicating that Company salesforce members would earn a substantial income through participation in the Company’s business opportunity. DSSRC also expressed its concern to the Company that the posts conveyed atypical earnings claims regarding the amount of income that could be generally expected by the typical salesforce member. -
3/30/2022 - DSSRC Administrative Closure #227
The Direct Selling Self-Regulatory Council (DSSRC) initiated an inquiry into a direct selling company (“Company”) regarding earnings claims disseminated by both the Company and its salesforce members on Facebook. The Facebook posts included claims of full-time income, unlimited income, and that the Company’s business opportunity can provide participants with the ability to make car payments, take vacations and become debt free. -
3/30/2022 - DSSRC Administrative Closure #226
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that offers nutritional beverages regarding certain earnings and product claims that were disseminated on social media by the Company’s salesforce members. More specifically, the seven earnings claims and twelve product claims at issue were all communicated on Facebook. The product claims brought to the Company’s attention pertained to representations that the Company’s products could be used to relieve a number of serious health-related conditions including, but not limited to, headaches, fibromyalgia, diabetes, attention deficit disorder, autism and COVID-19. The earnings claims communicated by salesforce members indicated, among other things, that the Company’s business opportunity provided an opportunity to earn $10,000 and $20,000 and free cars and incentive trips. -
3/25/2022 - DSSRC Administrative Closure #225
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that markets health and wellness products regarding three earnings claims and six health-related claims disseminated by salesforce members on Facebook and YouTube. The social media posts at issue included earnings claims stating that salesforce members could generally expect to achieve financial freedom and residual income from participating in the Company’s business opportunity as well as “real residual income.” The product performance claims included statements that the Company’s products could treat serious health-related conditions including, but not limited to, diabetes, lupus and fibromyalgia. -
3/25/2022 - DSSRC Administrative Closure #224
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims and products claims that were disseminated on social media by the Company’s salesforce members. The claims at issue included fifteen (15) posts that were disseminated on Facebook and YouTube and included unlimited income, full-time income claims (e.g., “Can be a great side job for that little extra or full time income”). DSSRC expressed its concern to the Company that these posts communicated atypical, unsupported earnings claims regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity. -
3/25/2022 - DSSRC Administrative Closure #223
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a direct selling company (“Company”) regarding seventeen social media posts disseminated on Facebook and one YouTube video. These social media posts were identified by DSSRC through its monitoring of the direct selling industry. The Facebook posts included references to the ability of Company salesforce members to earn significant monthly income and achieve “financial freedom” through the Company’s business opportunity. -
3/25/2022 - DSSRC Administrative Closure #222
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding nine earnings claims disseminated by salesforce members of the Company on Facebook. While one of the Facebook posts conveyed only that the Company’s business opportunity could provide salesforce members with a supplemental income to help pay down a bill, others conveyed that the Company’s direct selling opportunity could afford salesforce members the ability to pay for vacations, make a significant income and/or pay off debt (the “Posts”). DSSRC expressed its concern to the Company that the Posts conveyed atypical earnings claims regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity. -
3/25/2022 - DSSRC Administrative Closure #221
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue were made via five Facebook posts and two YouTube videos. These claims included unqualified earnings claims, such as, but not limited to, financial freedom and unlimited income. DSSRC expressed its concern to the Company that these posts communicated atypical earnings claims regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity. -
3/25/2022 - DSSRC Administrative Closure #220
The Direct Selling Self-Regulatory Council (“DSSRC”) contacted a company (“Company”) regarding five social media posts disseminated on Facebook that were identified pursuant to its monitoring of the direct selling industry. The posts included references to, among other things, the Company’s “unlimited income” potential, claims that salesforce members will earn “residual income” and a statement regarding how the business opportunity can “change financial futures for generations.” One post disseminated by a salesforce member also stated that since using the Company’s product, they are now “taking less or no medications.” -
1/31/2022 - DSSRC Administrative Closure #219
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue included five (5) posts that were disseminated on Facebook and included unlimited income (e.g., “An unlimited income opportunity’) and full-time income claims (e.g., “Earn full-time wage for part-time hours”). DSSRC expressed its concern to the Company that these Facebook posts communicated atypical earnings claims regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity. -
1/31/2022 - DSSRC Administrative Closure #218
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding certain earnings claims that were disseminated on social media by the Company’s salesforce members. The claims at issue were made via 11 posts on Facebook and included quantified earnings claims as well as claims that Company salesforce members can earn trips, significant income, free jewelry, financial freedom, or have a new career through the Company’s business opportunity. DSSRC expressed its concern to the Company that these Facebook posts communicated atypical earnings claims regarding the amount of income that could be generally expected by the typical salesforce member participating in the Company’s business opportunity. -
1/31/2022 - DSSRC Administrative Closure #217
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) regarding four earnings claims disseminated by salesforce members of the Company on social media. During the pendency of DSSRC’s inquiry, DSSRC identified four additional earnings claims that were disseminated by salesforce members of the Company on social media and brought those claims to the Company’s attention. DSSRC expressed its concern to the Company that the claims carried a high risk of being misleading to consumers and included promises of, among other things, “full-time income.”