| Q |
What is the difference between Direct Marketing and Direct Selling?
|
| A |
Direct Marketing can be referred as telemarketing, direct mailing and TV marketing. Direct selling refers to person-to-person selling. The major element lies in Direct Selling is that direct sellers take and sell their products directly to the hands of consumers without the need to get through various traditional channels such as exporters, importers, wholesalers and retailers.
|
| Q |
What is Pyramid Selling?
|
| A |
Pyramid Selling requires huge initial fee for registration. The source of income mainly comes from "member-get-member" programme instead of direct product selling. In addition, products sold are of low quality without buy back guarantee. When a participant quits, the company concerned usually rejects to buy back unsold, currently marketable inventory.
|
| Q |
What are the differences between legitimate and illegitimate direct selling?
|
| A |
Legitimate
Direct Selling
|
Illegitimate
Direct Selling
|
|
Low initial fee
|
Huge initial fee
|
|
Income generated
by selling products
|
Income generated
by recruiting new members
|
|
Quality products
|
Products of low
quality
|
|
Goods sold are
returnable within cooling-off period
|
No cooling-off
period or high restriction on return of goods
|
| Buy-back
for unsold marketable inventory |
No
buy-back for unsold marketable inventory |
|
|
|
| Q |
If I am not satisfied with the products brought from the direct sellers, can I return the goods and get cash refund? Are there any extra terms and conditions required? |
| A |
Every direct
selling company has its own operational mode. However, all member companies
of HKDSA (including Amway Hong Kong, Best World Lifestyle, Infinitus, Herbalife, Mary Kay, Nu Life, Nu Skin and USANA) have to follow the rules set by HKDSA. The major
rules include:
|
|
| 1. |
Offer of a minimum of seven-day cooling-off period;
|
| 2. |
Buy back unsold, currently marketable inventory at not less than 90% of the salesperson's original net cost less appropriate set-offs, if any.
|
|
|
|
| Q |
How does HKDSA supervise direct sellers?
|
| A |
HKDSA has set up the direct selling code of conduct, which includes true and accurate description of product features and applications, so as to supervise the sales activities of direct sellers.
|
| Q |
If I am not satisfied with the services provided by the direct seller, how can I make effective complaints?
|
| A |
If the company with which 5 you are experiencing difficulties is a member company of HKDSA, you can lodge your complaint with the company concerned or HKDSA. However, if the company is not a member company of HKDSA, you should contact relevant organizations such as Consumer Council for further assistance. |
