The U.S. Direct Selling Association issued the following statement regarding recent letters from the Federal Trade Commission to direct selling companies.
A handful of direct selling companies, including some members of the Direct Selling Association, have received warning letters from the Federal Trade Commission regarding inappropriate product and earnings claims made in connection with the ongoing virus pandemic.
The FTC has previously issued similar letters to other businesses, including some direct sellers. In response, DSA members have made a renewed commitment to abide by the requirements of the DSA Code of Ethics, and to correct misleading or inaccurate statements made by independent salespeople or the companies themselves about products or earnings — especially as they relate to the coronavirus.
DSA’s efforts to urge members and non-members alike to abide by the highest ethical standards will continue. In that regard, we have reached out to direct selling companies, including non-members, to request they affirm their commitment to those standards as put forth in the DSA Code of Ethics by becoming or remaining DSA members. Those companies which do not make that commitment will not be allowed to become members or remain in the Association. We urge all companies to follow the requirements of the law and go above and beyond those requirements to ensure that customers and prospective salespeople have and share the most accurate information possible. This is more important than ever in the midst of the health and economic challenges we face.
Those with additional questions regarding the FTC letters can contact Adolfo Franco, DSA’s executive vice president.