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.

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. Please refer to the Hong Kong Pyramid Schemes Ordinance for more information.

Legitimate Direct Selling

• Low initial fee

• Income generated by selling products

• Quality products

• Goods sold are returnable within cooling-off period

• Buy-back for unsold marketable inventory

Illegitimate Direct Selling

• Huge initial fee

• Income generated by recruiting new members

• Products of low quality

• No cooling-off period or high restriction on return of goods

• No buy-back for unsold marketable inventory

Every direct selling company has its own operational mode. However, all member companies of HKDSA (including Amway Hong Kong Limited, Best World Lifestyle (HK) Company Limited, Herbalife International of Hong Kong Ltd, Infinitus (Hong Kong) Company Limited, Mary Kay (Hong Kong) Limited, Nu Life International (Asia) Ltd, Nu Skin Enterprises Hong Kong, LLC, Organic Vision Limited, Perfect Resources (HK) Ltd, Unicity Marketing (HK) Co. Ltd, USANA Hong Kong Ltd) 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.

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.

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.

To join membership of HKDSA, please fill up the form and then mail to the Direct Selling Association of Hong Kong Limited, P.O. Box 38182, Hing Fat Street Post Office, or email to info@hkdsa.org.hk. Representative of HKDSA will follow up your application.