Archive for November, 2009

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For six years now DSA has helped coordinate the donation of millions of dollars in products and cash to the TODAY Show Holiday Gift Drive. This year 25 DSA member companies donated a total of more than $15.7 million, with a cummulative six-year total exceeding $52 million!

I’ve been fortunate enough to have gone to New York each of the past six years to present the donation live on the TODAY Show. Each year has been a great experience personally and professionally, but most of all, it’s just really rewarding to know that you’ve made a difference.

So how did it start? The Monday after Thanksgiving in 2004 I was cheerily chewing my Cheerios one morning when I saw someone being interviewed on the show about their donation to the Toy Drive. Something clicked in my head as a remembered a conversation I’d had just the week before with one of our members looking for a company that could come to their warehouse to remove and destroy dozens of pallets of merchandise from the previous season’s catalog. “What a shame and a waste of perfectly good merchandise!” I had thought. Bingo! If one company had all that perfectly usable inventory they wished would vanish – so must other companies. That very morning I put out a call to our companies with a goal of collecting $1 million in products. Before the week was over, I had collected more than $2 million in donations.

And every year since then, more and more companies have participated in the drive, donating everything from a single product to more than 300,000 of a single item – all distributed to more than 200 organizations around the country that will see to it that the products get into the hands of people in need of a bit of cheer during the holidays.

The win-win-win this program creates is obvious, but I have to say, it’s also really exciting to get to be part of the fun on the TODAY Show. Sitting on “the couch” inside the studio this year was great (I’ve been interviewed out on the plaza the previous five years) and the chance to interact with the hosts of the show and the production staff makes it clear why they always look like they’re having such a great time – because they are!

Throughout the next month at least nine other direct selling companies will be on-air to present their donations. Each and every one of them should be proud of the difference they’re making just by doing a little housekeeping in their warehouses!

Happy Thanksgiving!

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Hello 411 readers! It was a busy summer and early fall as I continue to get many inquiries about direct selling in this poor economy from both media outlets and the general public. It’s also been very busy at the Direct Selling Association as we prepare for our 100th anniversary in 2010.

However, some of the most exciting work has been done by the Ethics and Self-Regulation Committee which has spent more than a year carefully reviewing every clause of DSA’s Code of Ethics. For those who aren’t aware, the Code outlines the ethical guidelines DSA member companies must  follow, and guides DSA’s independent Code Administrator in handling any violations of the Code.

The Code is a living document that maintains its strength because it can adapt to a changing marketplace. After review, the Ethics and Self-Regulation Committee recommended substantial changes and additions to the Code. These changes were adopted by the DSA Board of Directors in September and I am pleased to be able to share these with readers of this blog!

Here’s a brief summary of what’s new:

• Statements Regarding Other Companies: Member companies are specifically prohibited from making misleading comparisons of another company’s direct selling opportunity, products or services. All comparisons must be based on objectively substantiated facts. 
• Promotional Materials: Promotional literature, advertisements and mailings may not contain product descriptions or other information that is false, deceptive or misleading. All literature must also contain the address and telephone number of the direct selling company and may include contact information for the independent salesperson. 
• Training and Materials: Independent salespeople may not market supplemental materials that are inconsistent with the member company’s policies and procedures. Further, the materials must be reasonably priced and cannot be a required purchase. The materials must also have a return policy consistent with that of the company itself. 
• Sales Receipts and Cooling Off: In the case of sales made in a non-face-to-face manner, such as via mail, phone or the Internet, a written order or receipt must be provided either in a printable or downloadable form via the Internet or with the initial order. Consumers must also be offered a clearly written description of the cooling-off period permitting cancellation of an order within three days for a full refund of the purchase price. 
• Inventory Loading: Companies must reasonably ensure that sellers who receive compensation for downline sales are consuming, using or reselling the products they purchase. In other words, salespeople should not be purchasing product for the sole purpose of qualifying for their downline commissions. 
• Fees: Any fees charged by a company to become a salesperson must be directly related to the value of materials, products or services provided in return. This provision does not prohibit a company from making a profit on their sales kit or other fees, but it would prohibit, for example, a $300 sales kit that includes nothing more than a set of pamphlets worth $20. 
• Extraterritorial Effect: U.S. DSA member companies operating in a country where they are not a member of the local DSA, or where a DSA does not exist, must comply with the World Code to the extent it is not inconsistent with U.S. law.

These changes address some very important and hotly debated direct selling issues and I’m confident the new provisions will add clarity and strength in these areas. Of course, the Code is only effective when consumers are aware of its existence and take advantage of it if they encounter a problem. The Code doesn’t have the power of law, but DSA member companies are responsible for making sure their corporate policies and the actions of each individual seller are in compliance – otherwise they risk losing their DSA membership or other remedial action. DSA’s job is to set standards and be the first line of protection if there’s a problem.

I encourage everyone to liberally share these changes, and the Code itself, with any one involved in direct selling – whether as a customer of the product or as a seller. You can also find an updated ”plain language” version of the Code online for both consumers and sellers.

As always, anyone is welcome to file a Code complaint if they’ve encountered a problem. 

And don’t think DSA is done yet! There will likely be additional tweaks and changes coming over the next 6-12 months so stay tuned.