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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"While several of the posts emanated from overseas, a number of the active posts include US area codes and contact email addresses and appear to have originated in North America,” industry self-regulation group says of Gano Excel.
Direct seller Flavon USA is referred to FTC after it failed to respond to repeated outreach by Direct Selling Self-Regulatory Council over claims its supplements treat coronavirus. The watchdog asked for substantiation of claims suggesting products also could tumors and diabetes.
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.