International Sales Reps’ COVID-19 Claims Bring Problems Home For US Supplement Direct Seller
"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.
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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.
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.
Similar to the National Advertising Division, the Direct Selling Self-Regulatory Council will provide a forum for competitive challenges in addition to routine monitoring of the direct-sales industry. Kelley Drye attorney John Villafranco predicts “greater self-regulatory focus on income misrepresentations and lavish lifestyle claims in the months ahead.”