DSA Code Part 1 Introduction

Part 1: Introduction			Back to index

1.	Background and Objectives
	1.1	Definition of Direct Selling
		The marketing of consumer product directly to consumer generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations, ususually through explanation or demontration of the products by a Direct Seller.
	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.
	1.3	It is a condition of membership of the DSANZ that the Code is strictly observed.
	1.4	Companies of the DSANZ pledge to adopt and enforce a code of conduct that incorporates at minimum 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.:
	1.5	This document incorporates the World Direct Selling Code of Conduct guideance principles adopted in October 2017 covering the activities of companies and individuals engaged in Direct Selling.
	1.6	The Objectives of this Code are to achieve the following outcomes
		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 daysor 5 working days (whichever is the longer) 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.
	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 of this Code.
	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.
	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.
	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. Should a company be subject to a Code Complaint in a country in which it is not a member, the company must accept jurisdiction of the Code Administrator (if one exists) of the complainant's country and, in evaluating the alleged Code complaint, apply, in order of priority, i. the standards of the Code of Ethics in the counrtry which the complaint is filed, or ii.the standards of the Code of Ethics in the subject company's home country, or iii. at a minimum, the standards set forth in the WFDSA Code of Ethics
2.	Scope
	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. b) 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 c) 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. d) 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. e) Obligations to comply with the Code shall not cease until the last obligation to do anything required by the Code has been performed.
3.	Exemptions
	*The following sales or goods and services are exempt from the Code.*
		a) Commercial sales of products or services bought exclusively for use in a commercial operation for which recourse may be achieved under the Contract and Commercial Law Act 2017 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. iii. the value is below $100 New Zealand c) Non-DSANZ member's sales.
4.	Citation
	This Code may be cited as the "Direct Selling Code of Practice."