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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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.
FTC warned 10 US direct sellers about false claims for health and wellness products that prey on consumer fears over COVID-19. The agency says it will continue to monitor the market for unfounded health claims as well as direct sellers' statements about distributors' potential earnings.