Direct Selling Association Statement on FTC Letters to Multilevel Marketers

April 24, 2020

The Direct Selling Association (DSA) affirms the admonition and direction of the Federal Trade Commission (FTC) that businesses should not promote any claim that products can treat or cure the Covid19 virus or make unsubstantiated earnings claims related to or stemming from the pandemic. DSA has also issued its own guidance to its members to that effect. The recent FTC advisory letters issued to several companies, including some DSA members, provides important guidance and warning to companies and independent salespeople that all claims need to be accurate and substantiated.

“Direct sellers have a special relationship with their customers and the wider community,” said DSA President Joseph N. Mariano.  “And those relationships convey upon us a special opportunity and obligation to share only accurate information.  DSA member companies have  committed to doing what’s right for their customers, salespeople, and communities in this time of crisis and consumer vulnerability, and I expect the companies who have been alerted to inappropriate or unhelpful claims will take prompt action to remedy those claims.”

Inappropriate product claims by companies or independent salespeople are prohibited under the DSA Code of Ethics. The areas of concern highlighted by the FTC correspondence have been forwarded to the DSA Code of Ethics Administrator, as well as the Direct Selling Self-Regulatory Council (DSSSRC) an independent enforcement authority created by DSA in cooperation with the Better Business Bureau National Programs (BBBNP), for appropriate remedial action. 

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I have additional questions, who can I contact?

You may contact Adolfo Franco, Executive Vice President.