The DSA Code of Ethics
The cornerstone of the Direct Selling Association’s (DSA) commitment to ethical business practices and consumer service is its Code of Ethics. Every member company pledges to abide by the code’s standards and procedures as a condition of admission and continuing membership in DSA.
The DSA Code of Ethics speaks to both the consumer and the seller. It requires that member companies or their representatives make no statements or promises that might mislead either consumers or prospective sales people. Pyramid schemes are illegal and companies operating pyramids are not permitted to be members of the DSA.
The DSA Code of Ethics is enforced by an independent code administrator who is not connected with any member company. The code administrator will do everything possible to resolve any complaints to the satisfaction of everyone involved, and has the power to decide on remedies. All member companies have agreed to honor the administrator’s decisions.
The Code of Ethics is an important consumer protection tool. Consumers are encouraged to enforce their rights under its provisions. Many complaints made under the Code involve simple customer service issues (such as an undelivered product or problems with returns) but other complaints involve situations where a customer might feel they have been mislead in the recruiting process or did not receive an accurate representation of how a product would perform. These issues are handled with extreme diligence by the Code Administrator. An investigation is performed and member companies are required to comply with any determination and remedy the Code Administrator prescribes.
In many instances, issues may arise based on information provided to consumers by a consultant – an independent contractor not employed by the company. While companies try to do everything possible to ensure representatives are properly trained to avoid situations that exceed the boundaries of business ethics or the law, the DSA Code of Ethics provides an important protection for consumers as companies may not invoke the “independent contractor defense” under the Code – they must take responsibility for the statements and actions of their representatives as they relate to the Code.
- See the full text of the Code of Ethics
- See a list of DSA member companies that comply with the Code
What the Code of Ethics means for Member Companies
Compliance with the DSA Code of Ethics is a requirement for membership in the Direct Selling Association. All applicants for membership must complete a one-year pending period during which time the company’s business plan is reviewed to ensure compliance with all provisions of the Code.
After becoming an active member of the association, companies are required to maintain compliance with the Code as a condition of continuing membership.
Company compliance with the Code of Ethics makes a bold statement about that company’s commitment to practicing the highest ethics in business. By doing business with a DSA member company, the field salesforce and the ultimate consumer can be sure they are dealing with a company serious about providing quality and service at the highest levels.
Each DSA member company appoints one member of its staff to serve as the Code Responsibility Officer (CRO). This individual is primarily responsible for communicating the tenets of the DSA Code of Ethics to the corporate employees and ensuring that the tenets of the DSA Code of Ethics are communicated to the company’s salesforce.
Displaying the DSA logo is a privilege given only to companies that have made the commitment to honor the Code of Ethics required for membership in the association. It should be regarded not only as a pledge to do right, but a promise to make a situation right in the event a problem does arise.
What the Code of Ethics Means for Direct Sellers
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.
What the Code of Ethics Means for Consumers
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.
- Promptly end a demonstration or presentation at your request.
- 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.
Find out how to file a Code complaint
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