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Introduction


An important role of the Direct Selling Association is increasing the community's understanding and acceptance of the direct sales channel in Australian retailing. The Code of Practice contributes to this by promoting ethical outcomes for consumers and direct sellers.


DSA members use different business models to market their products but each has the essential characteristic of the supply of a product arising or emanating from an agreement that is negotiated between a direct seller and a consumer away from a fixed retail location. Business models often include other aspects of retailing.
Understanding the Code requires some knowledge of the direct selling supply chain. Members are direct selling organisations. They market products to Australian and possibly overseas consumers. Their products are usually distributed through a wholesale model. That is a member sells a product to an independent direct seller who resells the product to an end user. Resellers are rewarded for their sales and sales by people they recruit into a member's business. Members provide direct sellers with business support particularly in education and training, and transaction and supply logistics.


At product and transaction levels direct selling is extensively regulated by Australian law. The Code complements this law and in respects gives consumers more assurance in their purchases.


The Code draws on global and local standards for direct selling. While its focus is on the rights of consumers of members' products it also guides behaviours expected between members and direct sellers and between members themselves.
The Code assures a quick and inexpensive alternative for resolving issues with binding resolutions on members. Compliance with the Code is essential for Association membership.


This version of the code was adopted in June 2018.


Objectives


As a complementary regulatory measure the Code aims to:
1. establish a point of reference for members and direct sellers in their dealings with consumers and potential direct sellers;
2. ensure consumers and direct sellers have the information needed for informed decisions;
3. reinforce a culture of compliance in members and direct sellers and minimise their risk of contravening the law; and
4. increase the confidence of consumers and direct sellers in their dealings with members.

To download the full Code of Practise click here