The Southwestern Company Difference Blog
Direct selling is widely known, but not widely understood.
With any type of transaction, it is important to have expectations that are realistic for each party involved – the consumer with the direct seller and the sales person with the wholeselling entity (the direct selling company). The Direct Selling Association (DSA) has a Code of Ethics that Southwestern Company and many other reputable companies follow. DSA also provides helpful tips about consumer safety and what to look for.
Below, are some helpful tips from the Direct Selling Association to help consumers know what to expect from direct sellers and what the salespeople can expect from DSA-member companies. The tips below go beyond the Federal Trade Commission’s requirements; it’s about doing the right thing and operating with integrity.
As a consumer you should expect salespeople to:
● Tell you who they are, why they’re approaching you and what products they are selling.
● Promptly end a demonstration or presentation at your request.
● Provide a receipt with a clearly stated cooling off period permitting the consumer to withdraw from a purchase order within a minimum of three days from the date of the purchase transaction and receive a full refund of the purchase prices.
● Explain how to return a product or cancel an order.
● Provide you with promotional materials that contain the address and telephone number of the direct selling company.
● Provide a written receipt that identifies the company and salesperson, including contact information for either.
● Respect your privacy by calling at a time that is convenient for you.
● Safeguard your private information.
● Provide accurate and truthful information regarding the price, quality, quantity, performance, and availability of their product or service.
● Offer a written receipt in language you can understand.
● Offer a complete description of any warranty or guarantee.
As a salesperson, you should expect a DSA member company to:
● Provide you with accurate information about the company’s compensation plan, products, and sales methods.
● Describe the relationship between you and the company in writing.
● Be accurate in any comparisons about products, services or opportunities.
● Refrain from any unlawful or unethical recruiting practice and exorbitant entrance or training fees.
● Ensure that you are not just buying products solely to qualify for downline commissions.
● Ensure that any materials marketed to you by others in the salesforce are consistent with the company’s policies, are reasonably priced and have the same return policy as the company’s.
● Require you to abide by the requirements of the Code of Ethics.
● Safeguard your private information.
● Provide adequate training to help you operate ethically.
● Base all actual and potential sales and earnings claims on documented facts.
● Encourage you to purchase only the inventory you can sell in a reasonable amount of time.
● Repurchase marketable inventory and sales aids you have purchased within the past 12 months at 90 percent or more of your original cost if you decide to leave the business.
● Explain the repurchase option in writing.
● Have reasonable start-up fees and costs.
The above-referenced tips have been provided by the Direct Selling Association and distributed by Southwestern Company.
