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Part II: Consumer Rights:

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6. Conduct toward Consumers          
 
a) Direct sellers shall conduct their business in a manner respectful of the rights and privileges of the individual in the privacy of his/her own home.

b) No Direct Seller shall use physical force, harassment or coercion in connection with the supply or possible supply of goods or services or the payment for goods or services.

c) Direct sellers shall not use misleading, deceptive, unsubstantiated claims or unfair sales practices. Ref: Fair Trading Act 1996 Sections 9, 10, 11,12A, 13, 14, or 17 (Other sections may also apply in some circumstances)

d) Direct Sellers shall comply with sections 36K-36R of the Fair Trading Act 1986 when making uninvited direct sales
e) A Direct Seller shall discontinue a demonstration, or sales presentation or telephone call immediately upon the request of the Consumer.

f) Direct Sellers shall make personal or telephone contact with Consumers only in a reasonable manner and during reasonable hours to avoid intrusiveness. Direct Sellers and Companies shall take appropriate steps to ensure the protection of all private information provided by a Consumer, a potential Consumer, or a Direct Seller. Ref Part III of this Code

g) Direct Sellers shall not abuse the trust of individual consumers and shall respect the lack of commercial experience of consumers. Direct Sellers shall not abuse the trust of individual consumers of exploit a consumer's age, disability, illness, lack of understanding, literacy or unfamiliarity with a language.
7. Customer Contact          
Identification          
 
a) At the initiation of a sales presentation, Direct Sellers shall, without request, truthfully and clearly identify themselves; the identity of their Company; the nature of their Products; and the purpose of their solicitation to the prospective Consumer.

b) On request Direct Sellers shall give their own contact address and/or the name, address and telephone number and/or email address of the company represented.

Also Ref: Section 36K (5) Fair Trading Act 1986

Explanation and Demonstration          
  All direct sellers shall offer Consumers -
 
    a) Accurate and complete Product explanations and demonstration regarding price, and if applicable, credit terms; terms of payment; quality; performance characteristics; quantity and availability of their products or services.

    b) To the extent claims are made with respect to product efficacy, Direct Sellers shall make only those verbal or written product claims that are authorised by the Company.

    c) Full details of the DSANZ or legal cooling off period, whichever is the longer, return rights and policy, term of guarantee, after sales service and delivery dates as provided in clauses, 10, 12 and 13 in this document.

    d) Answer all questions with accurate and understandable answers to all questions from Consumers.
Marketing Claims or Literature          
  All Companies or direct sellers representing member companies of the DSANZ shall not directly or through literature:
 
a) Make false or misleading comparisons about price or quality
b) Quote scientific or technical data in support of a claim unless the data can be readily substantiated
c) Use any testimonials or endorsement that is unauthorised, untrue, obsolete or otherwise inapplicable, unrelated to the offer or used in any way to mislead the Consumer.
d) Promise outcomes where those outcomes have no safe scientific, medical or performance basis.
e) Overstate security or health risks associated with the use or non-use of any product
f) Describe goods or samples as "free" unless the goods or samples are supplied at no cost or no extra cost to the consumer other than actual postage/carriage when specified.
g) Companies and Direct Sellers shall not use comparisons which are misleading. Points of comparison shall be based on facts which can be substantiated. Companies and Direct Sellers shall not unfairly denigrate any Company, business 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 Company, business or Product.
h) Use photos or illustrations that are deceptive
  Promotional literature shall contain the name and address or telephone number of the Company and may include the telephone number of the Direct Seller.
8. Order Forms      
  A written Order Form shall be delivered of made available to the Consumer at or prior to the time of the initial sale. In the case of a sale made via mail, telephone, the Internet, or similar non face to face means, a copy of the Order Form shall have been previously provided, or shall be included in the initial order, or shall be provided in printable or downloadable form via the Internet.
For clarity, Direct Sellers undertaking an uninvited direct sale must provide to teh consumer a copy of the agreement within 5 working days from which the agreement was entered into. Ref Section 36L Fair Trading Act.

The Order Form shall:

  a) Clearly identifies the company and the direct seller/salesperson.
b) Contain the full name, permanent address and telephone number of the direct seller and/or the member company.
  The Order form or accompanying literature provided with the product. (except where the sale is governed by legislation such as the Fair Trading Act 1986 where this right must be expressed in terms of the prescribed method in the legislation.)
  c) Show all material terms of the sale in a clearly legible form such as:
 
    • Total price including GST and delivery costs forming any part of the sale
    • Terms of sale
    • Delivery timing
    • Terms of guarantee or warranty/Additional guarantees (Ref section 15)
    • Return rights (Company or DSANZ rights)
    • Cooling off period
    • Details and Limitations of after sales service
    • Remedial action available to the Consumer
    • Information on complaints and dispute handling
    • Terms of Payment

Also Ref: Section 36L Fair Trading Act 1986

9.
Inducements or Referral Selling          
  Companies and Direct Sellers shall not induce a person to purchase goods or services based upon the representation that a Consumer can reduce or recover the purchase price by referring prospective customers to the Direct Sellers for similar purchases, if such reductions or recovery are contingent upon some uncertain future event.
 

Also Ref: Section 20 Fair Trading Act 1986

10. Pyramid Sales          
  No Direct Seller or member company of the DSANZ shall promote ,operate or be involved in any kind of 'pyramid selling scheme'.
  A 'pyramid selling scheme' being defined as;      
 

a) That which provides for the supply of goods or services or both for reward; and
b) That, to many participants in the scheme, constitutes primarily an opportunity to sell an investment opportunity rather than an opportunity to supply goods or services and
c) That is or is likely to be unfair to many of the participants in the scheme in that:

    • The financial rewards of many of those participants are dependent on the recruitment of additional participants (whether or not at successively lower levels) and
    • the number of additional participants in the scheme that must be recruited to produce reasonable financial rewards to participants in the scheme is not attainable or is not likely to be attainable by many of the participants in the scheme:
 

Also Ref: Section 24 Fair Trading Act 1986

11
Delivery          
  Direct Sellers will deliver the customer's order in a timely fashion and will advise the customer accurately of normal delivery times prior to the order being placed.
If the delivery can not be achieved in a timely fashion, the customer will be offered the opportunity to cancel the order.
12. Right of Cancellation, Cooling-off and Return of Goods        
 
a) Companies shall offer Consumers a minimum 'cooling off' period of 10 days or 5 working days, (whichever is the longer) during which they may cancel orders irrespective of whether a deposit or payment in full has been paid or delivery of goods has taken place, provided that subject to fair wear and tear any goods are returned in the same condition as when delivered. This period shall apply from the date of delivery of the goods or from after the date on which on which teh consumer receives a copy of the direct selling agreement, whichever is the later . This 'cooling-off' period shall be clearly stated and and shall apply equally to direct sales and distance sales (i.e. telephone, mail or online orders

b) Any deposit and/or initial payment paid prior to delivery shall be refundable upon the cancellation of the order or, in the case of credit transactions, in accordance with any statutory requirements.

c) Companies and direct sellers offering an unconditional right of return shall provide it in writing.

d) When direct sales are made on credit, direct sellers shall comply ywith the legal obligations under the Credit Contacts and Consumer Finance Act 2003. This includes meeting all lender responsibilities and supporting the lender to comply with these.

Also Ref: Sections 36M to 36R Fair Trading Act 1986

13. Cost of Returned Goods        
 
  • Goods returned under clause 12 are to be uplifted by the direct seller for return to the member company at the direct sellers cost. However should the customer return the goods directly to the company at their own cost the company may reimburse this cost at their discretion.
  • Where free-post or similar arrangements are offered by members this will be included in the sales documentation

14.

Substitute Goods or Services        
 
  • When direct sellers cannot supply exactly the same goods or service as specified by a consumer then they may supply substitute goods or services of similar kind, quality and price subject to the consumers acceptance under the Guarantee provisions of the member company.
  • In all such situations the consumer shall have the right of refund in full at their discretion.
15. Consumer Guarantees and After Sales Service      
 
  • Every member company of the DSANZ shall have a written guarantee relating to all its products or services. Such guarantees shall be directed towards consumer satisfaction and shall clearly set out the guarantee term and the remedial action available to consumers .
  • Information provided with member company's products or services shall include full instructions for proper use and adequate warnings relating to safety whenever necessary
  • All products will comply with all relevant information and labelling requirements and other Standards requirements under New Zealand law.
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