Day: October 3, 2021

Categories
News

Swissjust’s Direct Selling Self-regulatory Council Recommends That Certain Health-related Product Performance And Earnings Claims Be Discontinued

bbbprograms
bbbprograms

The BBB National Programs’ Direct Selling Self-Regulatory Council (DSSRC) recommended that SwissJust USA, a direct selling company that markets and distributes natural products for emotional, physical, and dermo-cosmetic well-being, and its salesforce stop making certain product performance and earnings claims. Concerns that the disputed product performance claims indicated that SwissJust products can treat and guard against major health-related disorders, such as COVID-19, were at the heart of this investigation.

DSSRC launched the investigation as part of its ongoing impartial monitoring of direct selling advertising and marketing claims. SwissJust salesforce members propagated the claims that were the focus of the investigation on social media.

Product Claims include, but are not limited to:

• The ideal pair Defends against viruses and bacteria Cough, asthma, sinusitis, rhinitis, allergies, and respiratory problems are all relieved by clearing the airways (translated from Spanish)
• Immune system booster, bactericidal disinfection, stress reliever, and corona defense (translated from Spanish)
• CORONA VIRUS PREVENTION (COVID-19). Boost your immune system with natural remedies. #coronavirus #covid #covid19 #just #swissjust
• Eucasol: antiviral; asthma, bronchitis, congestion, cough; emphysema; influenza, pneumonia; sinusitis; emphysema; emphysema; emphysema; emphysema; emphyse

Earnings Claim
• Join our SwissJust Team – You may make SwissJust a full-time job or simply use it to supplement your income to pay for life’s small indulgences.

SwissJust did not respond to DSSRC’s concerns that a reasonable consumer would take these and similar promises to indicate that salesforce members can generate a considerable income from the SwissJust business opportunity.

SwissJust was asked by the DSSRC to remove any social media posts claiming that its products are effective against major health-related diseases, as well as the contested statements that SwissJust salesforce members will earn a lot of money from the SwissJust business opportunity.

While DSSRC appreciated the company’s commitment to removing the topic posts from social media, DSSRC was concerned that they were still publicly accessible.

Even though SwissJust is a global firm with many salesforce members from outside of the US, DSSRC reminded SwissJust that it is nonetheless accountable for the honesty and accuracy of product and/or business opportunity statements made by its independent salesforce members. If the post was made by a former member of SwissJust’s salesforce, DSSRC will demand that the company demonstrate that it made a good-faith effort to have the inappropriate content removed, such as providing DSSRC with a copy of the takedown requests sent to the salesforce members responsible for the content.

SwissJust has failed to submit copies of the takedown requests received to salesforce members, and many of the challenged claims are still accessible to the public at the time of this court decision’s publication. DSSRC will have no choice but to send this complaint to the proper governmental organizations if SwissJust does not remove unfounded product performance and earnings claims from social media.

Categories
News

Quandary With Direct Selling

direct-selling
direct-selling

The pandemic prompted businesses of all types to sell on e-commerce platforms and communicate directly with customers. Cornitos and Bisleri went direct-to-consumer, and carmakers like Hyundai started selling four-wheelers online. Individual sellers will be able to accept and fulfill orders online starting in March 2020, thanks to direct selling companies. For example, Modicare launched a chatbot, an instant messaging catalog, and an online training academy for new vendors. Tupperware devised a system that allowed vendors to share unique links with clients in exchange for a commission on all orders placed through that connection. Meanwhile, Amway created a curriculum to teach direct sellers how to create social and digital media content and how to become influencers.

These direct selling enterprises, on the other hand, have not yet made the e-commerce channel available to the general public.

According to a survey conducted by the Indian Direct Selling Association, the Rs 17,000 crore direct selling business expanded by only 10% in FY21. The industry increased at 12 percent and 13 percent y-o-y in FY19 and FY18, respectively, after growing at 28.2 percent y-o-y in FY20.

The direct selling sector relies primarily on one-on-one interactions and vendor visits to customers’ homes. It has been attempting to shift to digital for a few years, and the epidemic has hastened this process. “Since the epidemic, most lead generation has taken place virtually. This might happen on social media platforms, WhatsApp groups, Facebook Messenger, and so on,” says Frederic Widell, Oriflame’s VP and head of South Asia and MD of India.

Through its network of direct dealers, Amway India is attempting to develop an influencer ecosystem. These influencers, according to Anshu Budhraja, CEO of Amway India, will promote Amway brands to consumers and pave the road for social commerce. According to Budhraja, the company’s online sales through private sellers increased last year, from over 33% before February 2020 to over 70% currently.

No takers for e-commerce

Although e-commerce use increased by a factor of ten during the epidemic, direct selling organizations discourage vendors from using e-commerce marketplaces. In 2020, a Delhi High Court ruling permitted e-commerce platforms to list products from direct selling companies like Amway, Modicare, and Oriflame without obtaining prior consent. Companies continue to delist vendors that use e-commerce platforms despite this. Gautam Bali, MD, Vestige Marketing, and chairman, ASSOCHAM’s direct selling council, says, “We are against this activity and have repeatedly delisted distributors who attempted to unethically sell our items on e-commerce platforms.”

Because direct sellers are considered “the backbone of the industry,” direct selling companies are wary about e-commerce and D2C networks. “Companies do not want to sell directly to these seven million people,” says Rajat Banerji, VP of the Indian Direct Selling Association. Direct sellers typically use direct selling businesses’ D2C websites to place orders on behalf of customers.

Deepak Chhabra, MD of Tupperware India, says the business solved the problem by allowing its direct sellers to operate on e-commerce platforms and manage the company’s offline exclusive brand stores.