Consumer Protection-Focused Direct Selling Association Files Comments with FTC on Advanced Notice of Proposed Rulemaking

May 11, 2022

(WASHINGTON D.C.) – The Direct Selling Association (“DSA”) filed comments with the Federal Trade Commission (“FTC”) yesterday on an Advanced Notice of Proposed Rulemaking (“ANPR”) regarding earnings claims. The comments questioned if a rule was needed since there are already robust ethics and self-regulation in direct selling. However, should the FTC decide to proceed with a rule and issue a Notice of Proposed Rulemaking, DSA’s comments suggest any forthcoming proposal should not be burdensome for millions of micro-entrepreneurs operating their businesses across the United States.

The DSA comments state, “Harnessing the effectiveness of self-regulation is an important way of achieving the deterrence and swiftness of action that the ANPR sets forth as goals of this rulemaking. In this regard, the DSA-created DSSRC (Direct Selling Self-Regulatory Council) as an important adjunct to the law enforcement presence of the FTC. DSSRC has a strong track record of monitoring the market for potentially problematic claims and engaging in quick and effective follow-up to address the relatively rare instances where it finds that distributors are making questionable claims, usually in social media.”

“We hope if the FTC decides to proceed with a rule, it heeds the comments of our Association - that represents millions of micro-entrepreneurs across the United States - and considers alternatives to this approach.  As we have before, we stand ready to work with the Commission on an outcome that protects consumers and does not burden these small businesses,” commented Joseph N. Mariano, DSA President.

DSA’s comments can be accessed here.

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I have additional questions, who can I contact?

You may contact Adolfo Franco, Executive Vice President.