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World Codes of Conduct for Direct Selling

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World Codes of Conduct. for Direct Selling. Background. DSAs must adopt ... World Codes of Conduct. for Direct Selling. Key provisions - company/seller codes ... – PowerPoint PPT presentation

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Title: World Codes of Conduct for Direct Selling


1
World Codes of Conduct for Direct Selling
2
World Codes of Conduct for Direct Selling
  • Presentation overview
  • Purpose
  • Background
  • Key provisions
  • Application

3
World Codes of Conduct for Direct Selling
  • Purpose
  • Ensure an ethical marketplace
  • Improve government and public perception
  • Promote fair competition

4
World Codes of Conduct for Direct Selling
  • Purpose
  • Underpin self-regulation for industry
  • Supplement/expand on existing laws

5
World Codes of Conduct for Direct Selling
  • Background
  • 1993 Commissioned by WFDSA
  • 1994 Approved by WFDSA board
  • 1995 Ratified by national DSAs
  • 1996 Implemented worldwide
  • 1998 Extra-territorial

6
World Codes of Conduct for Direct Selling
  • Background
  • Two related codes
  • toward consumers
  • toward direct sellers, between direct sellers and
    between companies

7
World Codes of Conduct for Direct Selling
  • Background
  • DSAs must adopt codes or equivalent
  • Member companies must abide

8
World Codes of Conduct for Direct Selling
  • Key provisions - consumer codes
  • No deceptive, unfair sales practices
  • Identification required

9
World Codes of Conduct for Direct Selling
  • Key provisions - consumer codes
  • Accurate, complete comparisons
  • Clear price, terms of payment
  • Cooling-off period and/or return rights
  • Guarantees/warranties
  • Key delivery details

10
World Codes of Conduct for Direct Selling
  • Key provisions - consumer codes
  • Written order form required
  • cooling-off clause
  • guarantee/warranty terms

11
World Codes of Conduct for Direct Selling
  • Key provisions - consumer codes
  • Truthful and fair speech
  • only company-authorized verbal promises
  • true, applicable, relevant testimonials
  • no deceptive/unfair comparisons or comments
  • respect consumers request for privacy

12
World Codes of Conduct for Direct Selling
  • Key provisions - consumer codes
  • Require sellers to be fair, responsive
  • no abuse or exploitation
  • timely deliveries

13
World Codes of Conduct for Direct Selling
  • Key provisions - company/seller codes
  • Three aspects of conduct
  • between direct sellers
  • between companies and direct sellers
  • between companies
  • Inventory/sales aids buy back requirement

14
World Codes of Conduct for Direct Selling
  • Key provisions - extra-territorial

15
World Codes of Conduct for Direct Selling
  • Key provision - company/seller codes
  • No misleading, deceptive or unfair recruiting
  • Accurate and complete information

16
World Codes of Conduct for Direct Selling
  • Key provision - company/seller codes
  • Documented earning claims
  • Written agreements
  • Reasonable fees

17
World Codes of Conduct for Direct Selling
  • Key provision - company/seller codes
  • Inventory
  • Remuneration
  • Education and training

18
World Codes of Conduct for Direct Selling
  • Key provisions - between companies
  • Fair treatment
  • No enticement
  • No denigration

19
World Codes of Conduct for Direct Selling
  • Key provisions - code enforcement
  • Companies have primary responsibility
  • DSAs assist in complaint resolution
  • Termination and other appropriate actions

20
World Codes of Conduct for Direct Selling
  • Application
  • Educating
  • -consumers (www.wfdsa.org)
  • -consumer advocates
  • -regulators
  • -academics
  • Code administrators role

21
World Codes of Conduct for Direct Selling
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