| Part VI: Recruitment
and Company Relationships to Direct Sellers |
BACK TO INDEX |
| 33. |
Recruiting Representatives |
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a) |
Companies shall
not use misleading, deceptive or unfair recruiting practices
in their interaction with prospective or existing Direct Sellers. |
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b) |
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.
Also ref. Fair Trading Act Sections 13 and 22 |
| 34. |
Code of Conduct Compliance |
| |
Member companies
of the DSANZ shall require their direct sellers as a condition
of membership in the company's distribution system, to comply
with the standards of this Code. |
| 35. |
Relationship |
| |
Member companies
will give their direct sellers either a written agreement or
a written statement containing all essential details of the relationship
between the direct seller and the company and inform direct sellers
of their legal obligations under New Zealand law including tax
obligation and relevant consumer legislation. |
| 36. |
Termination |
| |
If requested upon
termination of a Direct Seller's relationship with a Company,
Companies shall buy back any unsold, re-saleable Product inventory,
promotional material, sales aids and kits, purchased within the
previous twelve months and refund the Direct Sellers original
cost. The Company may deduct a handling charge of up to 10% of
the net purchase price and the value of any benefit received
by the Direct Seller based on the original purchase of the returned
goods, without violating this provision. |
| 37. |
Inventory |
| |
Member companies
or Direct sellers shall not require or encourage direct sellers
to purchase product inventory in unreasonably large amounts.
Product inventory levels should be determined on the ratio of
inventory to realistic sales possibilities, the competitiveness
of the products in the market environment and the company's product
return and refund policies and comply with Section 36 of this
Code. |
| 38. |
Remuneration and Accounts |
| |
Companies 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 arrangements with the direct
seller.
All monies due shall be paid and any withholdings made in a commercially
reasonable manner |
| 39. |
Business
Information |
| |
Information provided
by Companies to prospective or existing 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
Direct Seller that cannot be verified or make promises that cannot
be fulfilled. Companies shall not present the advantages of the
selling opportunity to any prospective recruit in a false or
deceptive manner. |
| 40. |
Fees |
| |
Companies and Direct
Sellers shall not require Direct Sellers or prospective Direct
Sellers to assume unreasonably high entrance fees, training fees,
franchise fees, fees for promotional materials or other fees
related solely to the right to participate in the company's distribution
system. Any fees charged to become a Direct Seller shall relate
directly to the value of materials, products or services provided
in return. |
| 41. |
Other
Materials |
| |
Companies shall
prohibit Direct Sellers from marketing or requiring the purchase
by others of any materials that are inconsistent with Company
policies and procedures.
Direct Sellers who sell Company approved promotional or training
literature, whether in hard copy or electronic form, shall; |
| |
i. |
Utilize only materials
that comply with the same standards to which the Company adheres |
| |
ii. |
Refrain from making
the purchase of such sales aids a requirement of downline Direct
Sellers |
| |
iii. |
Provide sales aids
at a reasonable and fair price, equivalent to similar material
available generally in the marketplace and |
| |
iv. |
Offer a written
return policy that is no less favourable to the Direct Seller
than the return policy of the Company the Direct Seller represents.
Companies shall take diligent, reasonable steps to ensure that
sales aids produced by Direct Sellers comply with the provisions
of this Code and are not misleading or deceptive |
| 42. |
Direct
Seller Training |
| |
Companies shall
provide adequate training to enable Direct Sellers to operate
ethically. |
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