the FTC and the regulatory authorities that we prioritize compliance in our companies.”
—Brian Bennett, Vice President of Government Affairs and Policy, DSA
Last summer the Direct Selling Association (DSA) began work on a comprehensive compliance program which will be available to both member and non-member companies.
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The Direct Selling Self-Regulatory Council (DSSRC), a division of BBB National Programs, has released new guidance on earnings claims. This new guidance defines and classifies earnings claims and is provided to help ensure direct selling companies and their independent distributors are making representations that comply with legal and self-regulatory standards.
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Is it realistic to expect direct selling companies to capture and/or prevent all instances of false claims expressed or shared by distributors? At a recent industry conference, a representative from a compliance monitoring supplier in a crowd of about 100 direct selling lawyers and executives didn’t think so.
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Even well-intentioned field members can post illegal claims
By Jonathan Gilliam, CEO of compliance firm Momentum Factor
“These warning letters are just the first step. We’re prepared to take enforcement actions against companies that continue to market this type of scam.”
—Joe Simon, Chairman, FTC
Coronavirus. COVID-19. A global pandemic. Whatever you want to call it, news is coming in daily with updated numbers of cases and deaths related to the quickly spreading virus. Cities and countries all over the world are shutting down. It’s a scary time for us all and, as with other crises that arrived suddenly and without warning, we are looking for answers and solutions.
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