Direct-Selling Sector Ad Claim Monitor Snares Supplement, Personal Care Product Firms
A BBB National Programs, Inc. investigative unit tells FTC that Dose of Nature failed to respond to its request to support its CBD oil claims; Utah direct sellers Young Living and doTerra agree to pull or modify drug claims for their essential oil products; HempWorx relabels topical as cosmetic.
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In NAD review on a challenge by S.C. Johnson, which markets Caldrea brand essentials oils, Young Living said because consumers are equally as likely to believe the products are therapeutic grade regardless of which image they saw in a survey demonstrates the claim doesn’t impact consumers’ perception of its products.
Direct Selling Self-Regulatory Council and Direct Selling Association guidance aims to curb multi-level marketers’ misleading earnings claims, a practice increasing among health and wellness direct sellers during the COVID-19 pandemic.
Charlotte’s Web is strengthening its DTC lead while growing its brick-and-mortar retail business, accelerating its pet product distribution and working to close its Abacus Health acquisition announced in March. The Boulder, CO-based CBD product manufacturer posted a 1% decline in net sales for the first quarter, but expects a rapid escalation in the second half of the year.