DSA Continues to Support Consumer Protection Efforts to Stop False COVID Product Claims

Feb 23, 2022
By DSJ Staff

Amid the rise of the Omicron variant, the Direct Selling Association (DSA) issued a release stating that it continues to support the Federal Trade Commission (FTC) in its effort to protect consumers by acting against false product claims related to the COVID-19 virus.

“DSA statements and guidance issued since March 2020 have been clear that unsubstantiated COVID-19 product claims and use of the pandemic to support the business opportunity are inappropriate. Our independent Code Administrator will handle any violation of DSA standards. Specifically, we have supported these statements and guidance with the Direct Selling Compliance Professional Certification Program launch last year, and the creation of a Compliance Officers Council,” said Joseph N. Mariano, President of DSA.

In recent months, the FTC has sent cease-and-desist letters to several companies regarding inappropriate claims, including one DSA member company that reports addressing the noted concerns with utmost seriousness.

DSA member companies are committed to high ethical standards, broad regulatory compliance, and self-regulation. The industry’s self-regulation body applicable to all companies in direct selling, the Direct Selling Self-Regulatory  Council (DSSRC), an independent entity under the BBB National Programs established in partnership with DSA, has also acted against companies making inappropriate COVID-19 claims since the start of the pandemic and will continue doing so. To date, DSSRC has submitted nine cases to the FTC for false product claims related to COVID-19.

“By identifying new ways to protect consumers and monitor the industry, DSA and its Board of Directors continue to work to establish strong compliance principles in the marketplace,” Mariano continued. “We are committed to supporting rigorous consumer protection and ensuring there are no inappropriate claims as they can be dangerous and compromise the relationship our companies and salesforce members have with their customers.”

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