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| 1.1 Scope
The Direct Selling Code of Conduct (hereinafter referred to as the "Code") is published by the World Federation of Direct Selling Association (WFDSA) for its national Direct Selling Association members. The Code concerns the relations between Direct Selling companies and Direct Sellers on the one hand and consumers on the other hand, between Direct Selling companies and Direct Sellers, between Direct Sellers, and between Direct Selling companies. The Code is aimed at:
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| 1.2 Glossary of Terms |
| For the purpose of the Code, the terms used have the following meaning: |
| Direct Selling: |
| The marketing of consumer products directly to consumers generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations, usually through explanation or demonstration of the products by a Direct Seller. |
| DSAs: |
| Direct Selling Associations are national associations of Direct Selling companies representing the interest of the Direct Selling industry of a country. |
| Company: |
| A Direct Selling company is a business entity which utilizes a Direct Selling organization for the marketing of products associated with its trademark or service mark or other identifying symbol and which is a member of a DSA. |
| Direct Seller: |
| A Direct Seller is a person who is a member of a distribution system of a Direct Selling company. A Direct Seller may be an independent commercial agent, independent contractor, independent dealer or distributor, employed or self-employed representative, franchisee or the like. |
| Product: |
| Product includes goods and services, both tangible and intangible. |
| Selling: |
| Selling includes contacting potential customers, presenting and demonstrating products, taking of orders and delivery of goods and the collection of payment. |
| Party Selling: |
| Selling through explanation and demonstration of products to a group of prospective customers by a Direct Seller usually in the home of a hostess who invites other persons for this purpose. |
| Order Form: |
| Includes printed or written orders, receipts and contracts. |
| Recruiting: |
| Any activity conducted for the purpose of inducing a person to become a Direct Seller. |
| Code Administrator: |
| A person or body appointed by a DSA to monitor member companies' observance of the DSA's Code and to resolve complaints under the Code. |
| 1.3 Associations |
| Every national DSA pledges to adopt a code of conduct that incorporates the substance of the provisions of the Code, as a condition of its admission and continuing membership in WFDSA. |
| 1.4 Companies |
| Every DSA member company pledges to abide by the Code as a condition of admission and continuing membership in the DSA. |
| 1.5 Direct Sellers |
| Direct Sellers are not bound directly by the Code, but shall be required by their companies to adhere to it or to rules of conduct meeting its standards as a condition of membership in the companies' distribution systems. |
| 1.6 Self-Regulation |
| The Code is a measure of self-regulation by the Direct Selling industry. It is not a law, and its obligations may require a level of ethical behavior which exceeds existing legal requirements. Non-observance does not create any civil law responsibility. With termination of its membership in a DSA, a company is no longer bound by the Code, the provisions of which remain applicable to events or transactions occurring during the time a company was a member of the DSA. |
| 1.7 Law |
| Companies and Direct Sellers are presumed to comply with the requirements of law and therefore the Code does not restate all legal obligations. |
| 1.8 Standards |
| The Code contains standards of ethical behavior for Direct Selling companies and Direct Sellers. National DSAs may vary these standards provided that the substance of the Code is preserved or as is required by national law. It is recommended that the Code be used as evidence of industry standards. |
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