| Part 1: Introduction |
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| 1. |
Background and Objectives |
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1.1 |
Definition of
Direct Selling |
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The sale of
consumer products or services in a face to face manner away from
a fixed retail location. |
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1.2 |
The Association, recognising that companies engaged
in direct selling assume special responsibilities towards consumers
arising out of the person-to-person method of distributing product
and services in locations other than fixed retail premises, hereby
sets forth the Code of Practice with which its member companies
shall comply in the conduct of their businesses. |
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1.3 |
It is a condition
of membership of the DSANZ that the Code is strictly observed. |
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1.4 |
Companies of
the DSANZ pledge to adopt
and enforce a code of conduct that incorporates the substance
of the provisions of this Code as a condition of admission and
continuing membership in the DSANZ. Companies also pledge to
publicize this Code, its general terms as they apply to Consumers
and Direct Sellers, and information about where Consumers and
Direct Sellers may obtain a copy of this Code.: |
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1.5 |
This document
incorporates the World
Direct Selling Code of Conduct principles covering the activities
of companies and individuals engaged in Direct Selling. |
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1.6 |
The Objectives
of this Code are to achieve
the following outcomes |
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- Advertising and Promotion which
is not misleading or deceptive
- Sales conduct that respects
the rights and privileges of the individual customer in the privacy
of his or her own home
- Product demonstrations that
give full explanation and cease on request
- Disclosure of the Direct Salespersons
full identity and address details and why they are approaching
the consumer
- Apply a minimum 10 days cooling
off period
- Advise fully the terms of payment
at the time the product is ordered
- Provision of comprehensive complaints
and disputes procedures
- Mechanisms to ensure that the
Code is administered ongoingly and reviewed periodically.
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1.7 |
Direct Sellers are not bound directly by this Code,
but as a condition of membership in the Company's distribution
system, shall be required to by the Company with whom they are
affiliated to adhere to rules of conduct meeting the standards
of this Code. |
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1.8 |
Self - Regulation
- This Code is not law,
but its obligations require a level of ethical behaviour from
Companies and Direct Sellers which conforms with or exceeds applicable
legal requirements. Non-observance of this Code does not create
any civil law responsibility or liability. With termination of
its membership in DSANZ, a Company is no longer bound by this
Code. However, the provisions of this Code remain applicable
to events or transactions that occurred during the time a Company
was a member of DSANZ. |
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1.9 |
Local Regulations
- Companies and Direct
Sellers must comply with all requirements of law in any country
in which they do business. Therefore, this Code does not restate
all legal obligations; compliance by Companies and Direct Sellers
with laws that pertain to Direct Selling is a condition of acceptance
by or continuing membership of the DSANZ. |
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1.10 |
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 Code 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. |
Scope |
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- a) The Code contains sections entitled "Conduct For the Protection of Consumers,"
"Conduct Between Companies
and Direct Sellers" and "Conduct
Between Companies." These three sections address the
varying interactions across the spectrum of direct sales.
The Code is designed to assist in the satisfaction and protection
of Consumers, promote fair competition within the framework of
free enterprise and enhance the public image of Direct Selling
b) This Code covers all Direct Selling Association of New
Zealand (DSANZ) members, their staff, contractors, distributors,
agents and salespersons, including full and associate members
while engaged in Direct Selling, for the sale of either products
or services.
c) A member of the DSANZ may terminate their membership
and their obligation to adhere to the Code by resigning formally
from the DSANZ giving fourteen days notice. This however does
not negate the obligation by the member to fulfil obligations
incurred while a member under the code.
d) Obligations to comply with the Code shall not cease
until the last obligation to do anything required by the Code
has been performed.
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| 3. |
Exemptions |
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The following
sales or goods and services are exempt from the Code. |
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- a) Commercial sales of products or services bought
exclusively for use in a commercial operation for which recourse
may be achieved under the Sale of Goods Act 1908 or the Fair
Trading Act 1986.
- b) Sales of foodstuffs shall be exempt from the cooling
off period where the use by date will have expired within that
period, and:
i. the product is delivered to the customer at the time
of sale; and
ii. the customer's attention is specifically drawn to
the expiry before becoming committed to the sale.
- c) Non-DSANZ member's sales.
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| 4. |
Citation |
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This Code may be cited
as the "Direct Selling Code of Practice." |
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