Direct Sales Industry Guidance Responds To ‘Increase In Questionable Earnings Claims’
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.
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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.
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.
At least one FTC commissioner seems convinced that the agency’s Enforcement Guides are ripe for an update to address unscrupulous influencer marketing practices. Democrat Rohit Chopra proposes their codification into formal rules that would make violators liable for civil penalties and damages.