Direct Selling Association Of Singapore Code Of Ethics & Conduct
World Direct Selling Code Of Conduct Toward Direct Sellers, Between Direct Sellers And Between Companies
World Direct Selling Code Of Conduct Toward Consumers

DIRECT SELLING ASSOCIATION OF SINGAPORE
CODE OF ETHICS & CONDUCT

" The Ministry of Trade and Industry supports the Code of Ethics & Conduct of the Direct Selling Association of Singapore as an industry-effort to promote fair trading. "

Preamble
The Direct Selling Association of Singapore [“DSAS’] recognizes that companies engaged in direct selling assume certain responsibilities towards consumers in their method of distributing their products and services, and sets forth the basic fair and ethical principles and practices to which Members shall be required to adhere in the conduct of their business.

1) Obligation
It is a condition of membership that every Member has to adhere to this Code of Conduct and to ensure that every Direct Seller in its system of distribution has read and understood the full meaning of this Code of Conduct.

Members that fail to adhere to this Code of Conduct may be referred to the Disciplinary Committee, which, in the event of a continuing failure to comply, may recommend and enforce sanctions which may include (but are not limited to) the suspension or termination of their membership with the DSAS.

All Members are required to comply with the requirements of the Consumer Protection (Fair Trading) Act (Cap. 52A), the Consumer Protection (Fair Trading) (Cancellation of Contracts) Regulations, the Multi-Level Marketing and Pyramid Selling (Prohibition) Act (Cap. 190), the Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order 2001, all other relevant regulations and any and all subsequent amendments to such legislation and subsidiary legislation.

2) Identification
Every Direct Seller shall, without being asked to do so, on initial contact with a prospective customer identify himself and the company he represents. Every Direct Seller is encouraged to carry a DSAS Identification Card or such other identification which displays his particulars, his photograph and the validity date (if any) of such a card.

3) Prohibited Practices
No Direct Seller shall engage in sales or recruiting practices that are unfair, misleading or deceptive or otherwise not in compliance and accordance with the relevant Singapore laws. No Direct Seller shall, in particular, take advantage of the old and the illiterate. In addition, no Direct Seller shall induce or mislead a customer into using a product with the intention of depriving the customer of his right to cancel an order or contract under the "7-day Cooling-off period" Statement.

4) Products or Services
The offer of products or services for sale by a Direct Seller shall be accurate, truthful and complete as to the price, grade, quality, make, value, performance, currency of the model and availability (as may be appropriate in each case).

5) 7-Day "Cooling-off period" Statement
A 7-Day "cooling-off period" statement (excluding Saturdays, Sundays and all public holidays), during which customers may, on reasonable commercial terms, cancel an order or contract and receive a full refund of their money, is to be printed legibly in at least 12 point font and positioned in the contract or order form immediately above the space for the signature of the customer. The contact details and particulars of the relevant Customer Service department or personnel should be given for the customer to invoke this statement if required.

The spirit of this statement shall be upheld and shall not be circumvented deliberately.

6) Payment of Deposit on Customer's Behalf
Prior to the delivery of a product, the initial deposit to be collected from the customer shall not exceed ten percent of the cash price of that product. No Direct Seller shall pay the initial deposit on behalf of the prospective customer.

7) Advertising and Testimonials
Every claim made by a Direct Seller whether orally or in writing shall be substantiated by acceptable documentary evidence when requested. Where applicable, product claims and product registration shall be in compliance with the requirements of the Health Sciences Authority, Ministry of Health, the Advertising Standards Authority of Singapore and or any other authorities where appropriate.

8) Guarantee and After-Sales Service
The terms of any guarantee and after-sales service shall be furnished in writing prior to or at the time of the signing of a purchase order, with the full extent of the guarantee and after-sales services clearly stated. There shall be no hidden costs to the customer.

9) Customer Complaints
Every Member shall put in place a proper and effective mechanism to deal with customer complaints in an efficient and expeditious manner with the objective of achieving customer satisfaction. In particular, Members shall ensure that the necessary telecommunications, internet or such other facilities are installed so as to be able to receive and process such customer complaints.

If a complaint appears to have been aggravated or the complainant has copied his letters to the Consumers' Association of Singapore or any relevant government authority, the Member shall promptly forward copies of such letters to the Chairman of DSAS, who shall bring the matter to the attention of the Disciplinary Committee. The Disciplinary Committee may refer such disputes to the Code Administrator for resolution.

10) Respect of Privacy
Every contact made with a prospective customer that is initiated by a Direct Seller shall be done during reasonable hours and any presentation or demonstration shall be discontinued promptly upon the request of the customer.

11) Education and Training
Members shall ensure that each of their Direct Sellers receives adequate education and business training in respect of their products, their obligations under this Code of Conduct and to ensure their familiarity with the World Direct Selling Codes of Conduct and the Multi-Level Marketing and Pyramid Selling (Prohibition) Act and Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order 2001, the Consumer Protection (Fair Trading) Act (Cap.52A), the Consumer Protection (Fair Trading) (Cancellation of Contracts) Regulations, all other relevant regulations and any and all subsequent amendments to such legislation and subsidiary legislation.

12) Comparison and Denigration
Direct Sellers shall refrain from unfairly comparing or denigrating any firm or product, whether directly or by implication.

13) Inventory
Members shall not require or encourage Direct Sellers to purchase inventory in an amount which unreasonably exceeds that which can be expected to be resold and /or consumed within a reasonable period of time.

14) Earnings Claims
Members and Direct Sellers shall not misrepresent the actual or potential sales or earnings of their Direct Sellers. Any earnings or sales representations made shall be based upon documented facts, in compliance with the relevant Singapore laws. Members shall provide Direct Sellers with periodic accounts concerning, as applicable, sales, purchases, details of earnings, commissions, bonuses, discounts, deliveries, cancellations and other relevant data, in accordance with the company’s arrangement with Direct Sellers. All monies due shall be paid and any withholdings made in a commercially reasonable manner.

15) Referral Selling
Members and Direct Sellers shall not induce customers to purchase goods or services based upon the representation that customers can reduce or recover the purchase price by referring prospective customers to the sellers for similar purchases, if such reductions or recovery are contingent upon some uncertain future event.

16) Privacy of Data
Members shall not sell, dispose or transfer (for profit or gain) personal data of their Direct Sellers or customers to any party, except when required in compliance to Singapore laws.

17) Enticement
Members and their Direct Sellers shall not solicit other Member’s Direct Sellers to join the former by active, targeted and systematic enticement.

"Direct Sellers" include every person that is a participant in a system of distribution.

The "Disciplinary Committee" shall consist of such persons as may be appointed by the Members from amongst their number from time to time, and who shall have the power to recommend and enforce disciplinary action under this Code of Conduct.

"Members" are member companies of the DSAS.

Updated May 2007
WORLD DIRECT SELLING CODE OF CONDUCT TOWARD DIRECT SELLERS, BETWEEN DIRECT SELLERS AND BETWEEN COMPANIES

A. GENERAL

A.a Scope
The World Direct Selling Code of Conduct toward Direct Sellers, between Direct Sellers, and between Companies (hereinafter referred to as the "Code") is published by the World Federation of Direct Selling Associations (WFDSA) for its National Direct Selling association members. The Code concerns the relations between Direct Selling companies and Direct Sellers, between Direct Sellers, and between Direct Selling companies. The Code is aimed at the protection of Direct Sellers, the promotion of fair competition in the framework of free enterprise, the enhancement of the public image of Direct Selling and the ethical representation of the Direct Selling industry's earning opportunity.

A.b Glossary of Terms
For the purpose of the Code, the terms used have the following meaning:

Direct Selling: The marketing of consumer products directly to consumers generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations, usually through explanation or demonstration of the products by a Direct Seller.

DSAs: Direct Selling Associations are national associations of Direct Selling companies representing the interest of the Direct Selling industry of a country

Company: A Direct Selling company is a business entity which utilizes a Direct Selling organization for the marketing of products associated with its trademark or service mark or other identifying symbol and which is a member of a DSA.

Direct Seller: A Direct Seller is a person who is a member of a distribution system of a Direct Selling company. A Direct seller may be an independent commercial agent, independent contractor, independent dealer or distributor, employed or self-employed representative, franchisee or the like.

Product: Product includes goods and services, both tangible and intangible.

Recruiting: Any activity conducted for the purpose of inducing person to become a Direct Seller.

Code Administrator: Independent person or body appointed by DSA to monitor member companies' observance of the DSA' code and to resolve complaints under the code.

A.c Associations
Every national DSA pledges to adopt a code of conduct that incorporates the substance of the provisions of the Code, as a condition of admission and continuing membership in WFDSA.

A.d Companies
Every DSA member company pledges to abide by the Code as a condition of admission and continuing membership in the DSA.

A.e Direct Sellers
Direct Sellers are not bound directly by the Code, but shall be required by their companies to adhere to it or to rules of conduct meeting its standard as a condition of membership in the companies' distribution systems.

A.f Self-Regulation
The Code is a measure of self-regulation by the Direct Selling industry. It is not a law, and its obligations may require a level of ethical behavior which exceeds existing legal requirements. Non-observance does not create any civil law responsibility. With termination of its membership in a DSA, a company is no longer bound by the Code, the provisions of which remain applicable to events or transactions occurring during the time a company was a member of the DSA.

A.g Law
Companies and Direct Sellers are presumed to comply with the requirements of laws and therefore the Code does not restate all legal obligations.

A.h Standards
The Code contains standards of ethical behavior for Direct Selling companies and Direct Sellers. National DSAs may vary these standards provided that the substance of the Code is preserved or as is required by national law. It is recommended that the Code be used as evidence of industry standards.

A.i Extraterritorial Effect
Every national DSA pledges that it will require each member as a condition to admission and continuing membership in the DSA to comply with the WFDSA World Codes of Conduct for Direct Selling with regard to direct selling activities are under the jurisdiction of Codes of Conduct of another country's DSA to which the member also belongs.

 

B. CONDUCT TOWARD DIRECT SELLERS

B.a Direct Sellers' Compliance
Companies shall require their Direct Sellers, as a condition of membership in the Companies' distribution systems, to comply with the Code or with rules of conduct which meet its standards.

B.b Recruiting
Companies and Direct Sellers shall not use misleading, deceptive or unfair recruiting practices.

B.c Business Information
Information provided by the company to its Direct Sellers and to prospective Direct Sellers concerning the opportunity and related rights and obligations shall be accurate and complete. Companies shall not make any factual representation to a prospective recruit which cannot be verified or make any promise which cannot be fulfilled. Companies shall not present the advantages of the selling opportunity to any prospective recruit in a false or deceptive manner.

B.d Earning Claims
Companies and Direct Sellers shall not misrepresent the actual or potential sales or earnings of their Direct Sellers. Any earnings or sales representations made shall be based upon documented facts.

B.e Relationship
Companies shall give their Direct Sellers either a written agreement to be signed by both the company and the Direct Seller or a written statement, containing all essential details of the relationship between the Direct Seller and the company. Companies shall inform their Direct Sellers of their legal obligations, including any applicable licenses, registrations and taxes.

B.f Fees
Companies and Direct Sellers shall not ask other Direct Sellers to assume unreasonably high entrance fees training fees, franchise fee, fees for promotional materials or other fees related solely to the right to participate in the business.

B.g Termination
On the termination of a Direct Seller's relationship with a company, companies shall buy back any unsold but saleable product inventory, including promotional material, sales aids and kits, and credit the Direct Seller's original net cost thereof less a handling charge to the Direct Seller up to 10% of the net purchase price and less any benefit received by the Direct Seller based on the original purchase of the returned goods.

B.h Inventory
Companies shall not require or encourage Direct Sellers to purchase product inventory in unreasonably large amounts. The following should be taken into account when determining the appropriate amount of product inventory: the relationship of inventory to realistic sales possibilities, the nature of competitiveness of the products and the market environment, and the company's product return and refund policies.

B.i Remuneration and Accounts
Companies shall provide Direct Sellers with periodic accounts concerning, as applicable, sales, purchases, details of earnings, commissios, bonuses, discounts, deliveries, cancellations and other relevant data, in accordance with the company's arrangement with the Direct Sellers. All monies due shall be paid and may withholdings made in a commercially reasonable manner.

B.j Education and Training
Companies shall provide adequate education and training to mable Direct Sellers to operate ethically. The may be accomplished by training sessions or through written manuals, or audio-visual materials.

 

C. CONDUCT BETWEEN COMPANIES

C.a Principle
Member companies of each DSA are requested to conduct themselves fairly toward other members.

C.b Enticement
Companies and Direct Sellers should not entice away or solicit any Direct Sellers by systematic enticement toward other companies' Direct Sellers.

C.c Denigration
Companies shall not unfairly denigrate nor allow their Direct Sellers to unfairly denigrate another company's product, its sales and marketing plan or any other feature of that company.

 

D. CODE ENFORCEMENT

D.a Companies' Responsibility
The primary responsibility for the observance of the Code shall rest with each individual company. In case of any breach of the Code, companies shall make every reasonable effort to satisfy the complainant.

D.b DSAs' Responsibility
DSAs shall provide a person responsible for complaint handling. DSAs shall make every reasonable effort to ensure that complaints are settled.

D.c Code Administrator
Each DSA shall appoint and independent person or body as Code Administrator. The Code Administrator shall monitor companies' observance of the Code by appropriate actions. The Code Administrator shall settle any unresolved complaint of Direct Sellers based on breaches of the Code.

D.d Actions
Actions to be determined by the Code Administrator against a company regarding complaints of a Direct Seller concerning breaches of the Code may include termination of the Direct Seller's contract or relationship with the company, refund of payments, issuance of a warning to the company or its Direct Sellers, or other appropriate actions and the publication of such actions or sanctions.

D.e Complaint Handling
Companies, DSAs and Code Administrators shall establish complaint handling procedures and ensure that receipt of any complaint is confirmed within a short time and decisions are made within a reasonable time.

D.f Companies' Complaints
Complaints of a company about another company or a DSA shall be resolved either by the Code Administrator or an independent arbitrator. Individual DSAs shall define details of their own procedures.

D.g Publication
DSAS shall publish the Code and make it known as widely as possible. Printed copies shall be made available free of charge to the public.

WORLD DIRECT SELLING CODE OF CONDUCT TOWARD CONSUMERS

1. GENERAL

1.1 Scope
The World Direct Selling Code of Conduct toward Consumers (hereinafter referred to as the "Code") is published by the World Federation of Direct Selling Associations (WFDSA) for its National Direct Selling association members. The Code concerns the relations between Direct Selling companies and Direct Sellers on the one hand and consumers on the other hand. The code is aimed at achieving the satisfaction and protection of consumers, the promotion of fair competition in the framework of free enterprise, and the enhancement of the public image of Direct Selling.

1.2 Glossary of Terms
For the purpose of the Code, the terms used have the following meaning:

Direct Selling: The marketing of consumer products directly to consumers generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations, usually through explanation or demonstration of the products by a Direct Seller.

DSAs: Direct Selling Associations are national associations of the Direct Selling companies representing the interest of Direct Selling industry of a country

Company: A Direct Selling company is a business entity which utilizes a Direct Selling organization for the marketing of products associated with its trademark or service mark or other identifying symbol and which is a member of a DSA.

Direct Seller: A Direct Seller is a person who is a member of a distribution system of a Direct Selling company. A Direct Seller may be an independent commercial agent, independent contractor, independent dealer or distributor, employed or self-employed representative, franchisee or the like.

Product: Product includes goods and services, both tangible and intangible.

Selling: Selling includes contacting potential customers, presenting and demonstrating products, taking of orders and delivery of goods and the collection of payment.

Party Selling: Selling through explanation and demonstration of products to a group of prospective customers by a Direct Seller usually in the home of a hostess who invites other persons for this purpose.

Order Form: Include printed or written orders, receipts and contracts.

Recruiting: Any activity conducted for the purpose of inducing person to become a Direct Seller.

Code Administrator: Independent person or body appointed by DSA to monitor member companies' observance of the DSA' code and to resolve complaints under the code.

1.3 Associations
Every national DSA pledges to adopt a code of conduct that incorporates the substance of the provisions of the Code, as a condition of its admission and continuing membership in WFDSA.

1.4 Companies
Every DSA member company pledges to abide by the Code as a condition of admission and continuing membership in the DSA.

1.5 Direct Sellers
Direct Sellers are not bound directly by the Code, but shall be required by their companies to adhere to it or to rules of conduct meeting its standard as a condition of membership in the companies' distribution systems.

1.6 Self-Regulation
The Code is a measure of self-regulation by the Direct Selling industry. It is not a law, and its obligations may require a level of ethical behavior which exceeds existing legal requirements. Non-observance does not create any civil law responsibility. With termination of its membership in a DSA, a company is no longer bound by the Code, the provisions of which remain applicable to events or transactions occurring during the time a company was a member of the DSA.

1.7 Law
Companies and Direct Sellers are presumed to comply with the requirements of laws and therefore the Code does not restate all legal obligations.

1.8 Standards
The Code contains standards of ethical behavior for Direct Selling companies and Direct Sellers. National DSAs may vary these standards provided that the substance of the Code is preserved or as is required by national law. It is recommended that the Code be used as evidence of industry standards.

1.9 Extraterritorial Effect
Every national DSA pledges that is will require each member as a conditional to admission and continuing membership in the DSA to comply with the WFDSA World Codes of Conduct for Direct Selling with regard to direct selling activities outside of its home country, unless those activities are under the jurisdiction of Codes of Conduct of another country's DSA to which the member also belongs.

 

2. CONDUCT TOWARD CONSUMERS

2.1 Prohibited Practices
Direct Sellers shall not use misleading, deceptive or unfair sales practices.

2.2 Identification
From the beginning of the sales presentation, Direct Sellers shall, without request, truthfully identify themselves to the prospective customer, and shall also identify their company, their products and the purpose of their solicitation. In party selling, Direst Sellers shall make clear the purpose of the occasion to the hostess and the participants.

2.3 Explanation and demonstration
Explanation and demonstration of the product offered shall be accurate and complete, in particular with regard to price and, if applicable, credit price, terms of payment, cooling off period and/or return rights, terms of guarantee and after-sales service, and delivery.

2.4 Answers to Questions
Direct Sellers shall give accurate and understandable answers to all questions from consumers concerning the product and the offer.

2.5 Order Form
A written order form shall be delivered to the customer at the time of sales, which shall identify the company and the Direct Seller and contain the full name, permanent address and telephone number of the company or the Direct Seller, and all material terms of the sale. All terms shall be clearly legible.

2.6 Verbal Promises
Direct Sellers shall only make verbal promises concerning the product which are authorized by the company.

2.7 Cooling-off and Return of Goods
Companies and Direct Sellers shall make sure that any order form contains, whether it is a legal requirement or not, a cooling-off clause permitting the customer to withdraw from the order within a specified period of time and to obtain reimbursement of any payment or goods traded in. Companies and Direct Sellers offering an unconditional right of return shall provide it in writing.

2.8 Guarantee and After-Sales Service
Terms of a guarantee or a warranty, details and limitation of after-sales service, the name and address of the guarantor, the duration of the guarantee and the remedial action open to the purchaser shall be clearly set out in the order form or other accompanying literature or provided with the product.

2.9 Literature
Promotional literature, advertisements or mailings shall not contain any product description, claims or illustrations which are deceptive or misleading, and shall contain the name and address or telephone number of the company or the Direct Seller.

2.10 Testimonials
Companies and Direct Sellers shall not refer to any testimonial or endorsement which is not authorized, not true, obsolete or otherwise no longer applicable, not related to their offer or used in any way likely to mislead the consumer.

2.11 Comparison and Denigration
Companies and Direct Sellers shall refrain from using comparisons which are likely to mislead and which are incompatible with principles of fair competition. Points of comparison shall not be unfairly selected and shall be based on facts which can be substantiated. Companies and Direct Sellers shall not unfairly denigrate any firm or product directly or by implication. Companies and Direct Sellers shall not take unfair advantage of the goodwill attached to the trade name and symbol of another firm or product.

2.12 Respect of Privacy
Personal or telephone contact shall be made in a reasonable manner and during reasonable hours to avoid intrusiveness. A Direct Seller shall discontinue a demonstration or sales presentation upon the request of the consumer.

2.13 Fairness
Direct Sellers shall not abuse the trust of individual consumers, shall respect the lack of commercial experience of consumers and shall not exploit a consumer's age, illness, lack of understanding or lack of language knowledge.

2.14 Referral Selling
Companies and Direct Sellers shall not induce a customer to purchase goods or services based upon the representation that a customer can reduce or recover the purchase price by referring prospective customers to the sellers for similar purchases, if such reductions or recovery are contingent upon some unsure future event.

2.15 Delivery
Companies and Direct Sellers shall fulfill the customer's order in a timely manner.

 

3. CODE ENFORCEMENT

3.1 Companies' Responsibility
The primary responsibility for the observance of the Code shall rest with each individual company. In case of any breach of the Code, companies shall make every reasonable effort to satisfy the complainant.

3.2 DSAs' Responsibility
DSAs shall provide a person responsible for complaint handling. DSAs shall make every reasonable effort to ensure that complaints are settled.

3.3 Code Administrator
Each DSA shall appoint and independent person or body as Code Administrator. The Code Administrator shall monitor companies' observance of the Code by appropriate actions. The Code Administrator shall settle any unresolved complaint of Direct Sellers based on breaches of the Code.

3.4 Actions
Actions to be determined by the Code Administrator against a company regarding complaints of a Direct Seller concerning breaches of the Code may include termination of the Direct Seller's contract or relationship with the company, refund of payments, issuance of a warning to the company or its Direct Sellers, or other appropriate actions and the publication of such actions or sanctions.

3.5 Complaint Handling
Companies, DSAs and Code Administrators shall establish complaint handling procedures and ensure that receipt of any complaint is confirmed within a short time and decisions are made within a reasonable time.

3.6 Publication
DSAS shall publish the Code and make it known as widely as possible. Printed copies shall be made available free of charge to the public.