Part II: Consumer Rights: |
Back to Index
|
|
|
|
|
|
|
|
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
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Top of Page |