Each member company must comply with the Code of Conduct of the World Federation of Direct Selling Associations with respect to direct selling activities outside the United States, to the extent that the DSA Code is not contrary to U.S. law, unless such activities fall within the jurisdiction of the DSA Code of Conduct of another country to which the member company also belongs. (3) Supply such materials at the price at which similar materials are generally available on the market, without significant profit to the independent seller, and a member company may not require or encourage an independent seller to purchase inventory in quantities unreasonably greater than the amount that can be expected: that it is resold and/or consumed by the independent seller within a reasonable time. h. Independent sellers respect any lack of consumer business experience. Independent sellers must not abuse the trust of individual consumers or take advantage of a consumer`s age, illness, disability, misunderstanding or language skills. The simple prohibition of misrepresentation in the Code should, in part, prevent start-up member companies with little or no history of actual earnings from being overburdened by their compensation plan or established member firms testing or deploying new compensation plans. The prohibition approach is intended to require that, in these circumstances, member firms only have to ensure that their promotional materials and public statements clearly demonstrate that the compensation plan is new and that all given graphs, figures and examples of income under the plan are potential in nature and are not based on the actual performance of one or more individuals. f. This Code is not a law, but its obligations require a level of ethical conduct on the part of member companies and independent sellers that complies with applicable legal requirements. Failure to comply with this Code will not result in any civil liability. When a company leaves DSA membership, a company is no longer bound by this Code.
However, the provisions of this Code continue to apply to events or transactions that occurred during the period in which a corporation was a member of the DSA. c. The Administrator is committed to maintaining and improving all relationships with better business offices and other private and public organizations in order to improve the industry`s relations with the public and to obtain from these organizations information on the industry`s sales activities. If a member corporation has submitted a request for review in accordance with section D.2. or an appeal against the Administrator`s remedies under Article D.3. a complaints body composed of three representatives of the active member companies is selected by the Executive Committee of the Board of Directors of the DSA within 20 calendar days. The three member companies are selected to represent a representative sample of the industry. If possible, none of the three may sell a product that is specifically in competition with the member company that the Review Appeal Board (hereinafter “the complainant”) is seeking and every effort will be made to avoid conflicts in the panel`s selection. If, for any reason, a member of the Board of Directors is unable to perform his or her duties, the Chair of the Board of Directors of the DSA may replace that person with a new appointment. Representatives on the Appeal Review Committee have, during their term on the Appellate Body, the same rights of compensation as directors and officers under the articles of association of the DSA. Independent sellers do not receive income for the recruitment of other participants in a distribution system; except that companies can offer minimum incentives to independent sellers in accordance with the law. b.
All member companies must indicate each year after submitting their program, as well as the payment of their contributions, that the program remains in effect or indicates a change. b. Member companies and their sellers offer a written and clearly stated cooling-off period that allows the consumer to withdraw from an order within at least three working days from the date of the purchase transaction and receive a full refund of the purchase price. The cooling-off period also applies to personal sales, as well as sales by mail, telephone, Internet or other non-face-to-face sales. The debt default agreement is an agreement between the creditor and the debtor in which the debtor is unable to repay the borrowed money (principal and interest) and the creditor agrees to reach an agreement on the amount a debtor can pay by setting new terms in writing. The debt settlement agreement can help the creditor to be partially repaid. The DSA Code Administrator appointed under Section C.1 (“Administrator”) has the authority to determine, in relation to applicable legal standards, by way of guidance, what constitutes a misleading, illegal or unethical consumption or recruitment practice under the Code. Compliance with any particular law, regulation or code of ethics of the DSA is not a defence to the Administrator`s finding that a practice is misleading, illegal or unethical.
For example, compliance with the Federal Trade Commission`s thinking rule when selling to a consumer does not prevent the administrator from determining that a particular sales practice is misleading, illegal or unethical, and that a refund or compensation is required. At no time during an investigation or hearing of charges against a member company, the administrator or member of an appellate body may consult any person regarding the alleged violation(s) of the Code, except as provided herein and may be necessary to conduct the investigation and hold a hearing. At no time during the investigation or the Appeal Review Committee process may the Director or a member of the Appeal Review Committee consult with a competitor of the Member Company who is alleged to have contravened the Code, unless it is necessary to refer the matter to a competitor; in this case, the competitor can only be contacted for the purpose of discussing the facts. At no time may a competitor participate in the decision of the administrator or an appellate body on an issue. c. If the Administrator determines that there are violations of this type, scope or frequency, that the interests of consumers, the DSA and/or the direct selling industry require corrective action, the Member Company will be notified. The reasons and facts that led to the decision, as well as the nature of the appeal under section E.1, are set out in the Administrator`s opinion. The Communication is also intended to give the member company the opportunity to approve the proposal without the need to file a complaint under section D.4. .