Direct Selling Self-Regulatory Council Refers Social Media Earnings Claims for Dot Dot Smile to the FTC and California Attorney General for Possible Enforcement

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Dec 08, 2021, 09:00 ET

MCLEAN, Va., Dec. 8, 2021 /PRNewswire/ -- The Direct Selling Self-Regulatory Council (DSSRC) of BBB National Programs referred certain earnings claims to the Federal Trade Commission (FTC) and the California Attorney General's Office for possible enforcement action after Dot Dot Smile, a direct selling company that sells children's clothing, failed to adequately respond to DSSRC's inquiry.

At issue in DSSRC's inquiry are earnings claims disseminated by salesforce members on social media implying that participating in Dot Dot Smile's business opportunity will result in earning significant income.

The following claims were brought to Dot Dot Smile's attention by DSSRC as part of its ongoing independent monitoring of the direct selling marketplace:

"I started with DotDotSmile so I could stay home with my sweet girl when she was just 8 months old❤️ 1 year and 8 months later, it's my career. I can help my husband pay the bills. I can pay for vacations. I can buy my daughter extra (possibly unnecessary 😂) gifts ❤️ Bottom line?? I'm so so thankful for my little fam and this amazing business. #dotdotsmile #dotdotsmilekids #family #love #confidence #momboss #businesswoman" (on Facebook)
"I had NO clue that exactly a year later, the whole world would shut down and that my DotDotSmile business would LITERALLY pay the bills for my other business while I was forced to close. Who knew boutique shopping is not "essential"? Who makes these rules anyway? 😂😂 I had no clue that my "little" dress business would grow enough that I was able to sell my store and work from home while helping my kiddos through a hybrid school schedule. I'm able to be a mom, a wife, AND a successful business owner. All without having any debt connected to my business. THAT is what I call the American dream, y'all." (on Facebook)
"You can set out and build your dream life…When I get messages from merchandisers and I hear them telling me and I feel it in their voices, they're fighting back tears telling me 'Nicole, thank you so much for giving us this opportunity because I never thought I was going to be able to buy a home for my family, I never thought that I was going to ever not be on food stamps, I never thought that I was ever going to be able to put my kids in sports, I never thought I was going to be able to let my husband work less, and we can come together as a team and both provide for our families." (on YouTube)
"I initially thought I would sell a few items here and there and pay some bills but it has became so much more than that!" (on Facebook)
"Back in April, when the whole world went mad, I had to close my store for a whole month. A month is not that long for everyone else, but for a business owner, a month with no income can be detrimental. I still had water, electric, internet, rent, and other bills due. So I shifted what I was doing and started working my DotDotSmile business 100% of the time. I am SO. BLESSED. To tell you that every bill that came was paid with dress money. My DotDotSmile business more than just kept me afloat, it TRIPLED during a pandemic. I'm not really sure why I'm telling you all of this except maybe.... to say two things:

THANK YOU! I can't even begin to tell you how much I appreciate you all.
Maybe things have changed for you too, and you need a side hustle you can depend on. Maybe you don't need a full time job, but just a supplemental income. Maybe you need a business that's going to pay the bills. DotDotSmile can be either one of those things to you. Let's chat, friend. It could change your life."

When the company first received the inquiry from DSSRC in September 2021, Dot Dot Smile did not respond. After several attempts to contact the company via telephone, email, and mail, Dot Dot Smile failed to respond to DSSRC's inquiry and provide substantiation for the challenged claims.

In accordance with DSSRC's Policies and Procedures, if a company does not respond to DSSRC or declines to participate, DSSRC will issue a case decision indicating the company was unresponsive or declined to participate in the DSSRC process and refer the matter to the appropriate government agency. Moreover, according to section (V)(B) of the DSSRC Policies and Procedures, in the event that the subject company fails to submit a responsive statement, DSSRC may refer the matter to an appropriate government agency for review and possible law enforcement action. Accordingly, based upon Dot Dot Smile's failure to respond to DSSRC in the self-regulatory process, DSSRC referred this matter to the FTC and the California Attorney General's Office.

All BBB National Programs case decision summaries can be found in the case decision library. For full text of DSSRC decisions, visit the DSSRC Cases and Closures webpage.

About BBB National Programs: BBB National Programs is where businesses turn to enhance consumer trust and consumers are heard. The non-profit organization creates a fairer playing field for businesses and a better experience for consumers through the development and delivery of effective third-party accountability and dispute resolution programs. Embracing its role as an independent organization since the restructuring of the Council of Better Business Bureaus in June 2019, BBB National Programs today oversees more than a dozen leading national industry self-regulation programs, and continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-directed marketing, and privacy. To learn more, visit bbbprograms.org.

About the Direct Selling Self-Regulatory Council: The Direct Selling Self-Regulatory Council (DSSRC), a division of BBB National Programs, provides independent, impartial monitoring, dispute resolution, and enforcement of false product claims and income representations made by direct selling companies and their salesforce members across digital platforms. The DSSRC seeks to establish high standards of integrity and business ethics for all direct selling companies in the marketplace.

SOURCE BBB National Programs