The Direct Selling Proclamation and Compact
Whereas, direct selling is a vital and integral part of the
United States economy with more than 15.9 million Americans engaged in direct selling and $31 billion in annual sales; and
Whereas, direct selling empowers individuals from all walks
of life, including the underserved, to operate their own businesses, supplement their incomes and build careers; and
Whereas, the direct selling industry supports the rights of
American consumers while working in conjunction with the United States Congress, federal regulatory agencies, state attorneys general, state legislatures, and local law enforcement officials; and
Whereas, the direct selling industry strives to implement
programs to ensure all demographic groups understand the potential direct selling holds, and are empowered with the knowledge and tools necessary to make informed decisions about whether direct selling is the right choice for them; and
Whereas, the Direct Selling Association, the national trade
association of the leading firms that manufacture and distribute goods and services sold directly to consumers, promotes self-regulation through a strict Code of Ethics for which it has been applauded and received a presidential citation; and
Whereas, the Direct Selling Association’s mission is: “To
protect, serve and promote the effectiveness of member companies and the independent business people they represent. To ensure that the marketing by member companies of products and/or the direct sales opportunity is conducted with the highest level of business ethics and service to consumers;” and
The Direct Selling Association, its member companies and individual direct sellers for said companies do affirm and agree they will offer innovative, unique and valuable products and services to the American consumer; they will offer the highest level of customer service; they will promote the highest level of ethical business practices through the DSA Code of Ethics; they will provide an opportunity to individual direct sellers; and they will continue to work with governmental and non-governmental policymakers to protect
Attested to and agreed to by:
President, Direct Selling Association
On Behalf of the Association
Chairman, DSA Board of Directors
On Behalf of all DSA Member Companies
And, Individual direct sellers from all over the United States
Summary Version of the DSA Code of Ethics
As a consumer you should expect salespeople to:
- Tell you who they are, why they’re approaching you and what products they are selling.
- Promptly end a demonstration or presentation at your request.
- Provide a receipt with a clearly stated cooling off period permitting the consumer to withdraw from a purchase order within a minimum of three days from the date of the purchase transaction and receive a full refund of the purchase price.
- Explain how to return a product or cancel an order.
- Provide you with promotional materials that contain the address and telephone number of the direct selling company.
- Provide a written receipt that identifies the company and salesperson, including contact information for either.
- Respect your privacy by calling at a time that is convenient for you.
- Safeguard your private information.
- Provide accurate and truthful information regarding the price, quality, quantity, performance, and availability of their product or service.
- Offer a written receipt in language you can understand.
- Offer a complete description of any warranty or guarantee.
As a salesperson, you should expect a DSA member company to:
- Provide you with accurate information about the company’s compensation plan, products, and sales methods.
- Describe the relationship between you and the company in writing.
- Be accurate in any comparisons about products, services or opportunities
- Refrain from any unlawful or unethical recruiting practice and exorbitant entrance or training fees.
- Ensure that you are not just buying products solely to qualify for downline commissions.
- Ensure that any materials marketed to you by others in the salesforce are consistent with the company’s policies, are reasonably priced and have the same return policy as the company’s.
- Require you to abide by the requirements of the Code of Ethics.
- Safeguard your private information.
- Provide adequate training to help you operate ethically.
- Base all actual and potential sales and earnings claims on documented facts.
- Encourage you to purchase only the inventory you can sell in a reasonable amount of time.
- Repurchase marketable inventory and sales aids you have purchased within the past 12 months at 90 percent or more of your original cost if you decide to leave the business.
- Explain the repurchase option in writing.
- Have reasonable start-up fees and costs.