ADSEI

A. Prohibited practices by the Direct Selling Member Entity or Direct seller  for a member Entity

1. No Direct Selling Member Entity or Direct seller  for a member Entity shall run any scheme formed by subscribers/members enrolling/joining one or more subscribers/members in order to receive any benefit, directly or indirectly, as a result of enrolment, action or performance of additional subscribers/members to the scheme.
   
2. No Direct Selling Member Entity or Direct seller  for a member Entity shall engage in any Pyramid Scheme or enroll any person to such scheme or participate in such arrangement in any manner whatsoever in the garb of doing Direct Selling business.
   
3. No Direct Selling Member Entity or Direct seller  for a member  Entity  will  participate  in  Money  Circulation Scheme,  as  defined  in  Clause  1(12)  in  the  garb  of Direct Selling of Business Opportunities.
   
4. No Direct Selling Member Entity or Direct seller  for a member Entity shall engage in any deceptive, false, unethical or unlawful consumer or recruiting practice. Member entities shall ensure that no statements, promises or testimonials are made that are likely to mislead consumers or prospective independent Direct sellers.
   
5. No Direct Selling Member Entity or Direct seller  for a member Entity shall use misleading, deceptive or unfair recruiting   practices,   including   misrepresentation   of actual or potential sales or earnings, in their interaction with prospective or existing direct sellers
   
6. No Direct Selling Member Entity or Direct seller  for a member Entity shall Make any factual representation to a prospective direct seller that cannot be verified or make any promise that cannot be fulfilled
   
7. No Direct Selling Member Entity or Direct seller  for a member Entity shall Present any advantages of direct selling  to  any  prospective direct  seller  in  a  false  or deceptive manner.
   
8. No Direct Selling Member Entity or Direct seller  for a member Entity shall Make or cause, or permit to be made, any representation relating to its direct selling business,  including  remuneration  system  and agreement between itself and the direct seller, or to the goods or services being sold by itself or by the direct seller which is false or misleading.
   
9. No Direct Selling Member Entity or Direct seller  for a member Entity shall Engage in, or cause or permit, any conduct  that  is  misleading  or  likely  to  mislead  with regard to any material particulars relating to its direct selling business, including remuneration system and agreement between itself and the direct seller, or to the goods or services being sold by itself or by the direct seller.
   
10. No Direct Selling Member Entity or Direct seller  for a member Entity shall Use, or cause or permit to be used, fraud,    coercion,  harassment,  or  unconscionable  or unlawful means in promoting its direct selling practice, including remuneration system and agreement between itself and the direct seller, or to the goods or services being sold by itself or by the direct seller.
    
11. No Direct Selling Member Entity or Direct seller  for a member Entity shall Require its direct sellers to provide any benefit, including entry fees and renewal fees or to purchase   any   sales   demonstration   equipment   or material in order to participate in its direct selling operations.
    
12.  No Direct Selling Member Entity or Direct seller  for a member Entity shall Provide any benefit to any person for   the  introduction  or  recruitment  of  one  or  more persons as direct sellers.
    
13.  No Direct Selling Member Entity or Direct seller  for a member Entity shall Require the direct sellers to pay any money by way of minimum monthly subscription or renewal charges.
    
14.  Neither Direct selling member entity nor their Direct sellers shall make misleading comparisons of another entity’s direct selling opportunity, products or services. Any comparison must be based on facts that can be objectively and adequately substantiated by competent and reliable evidence.
    
15. Neither Direct selling member entity nor their Direct sellers shall denigrate any other member entity, business, product or service—directly or by implication—in a false or misleading manner and shall not take unfair advantage of the goodwill attached to the trade name and symbol of any  entity, business, product or service.
    
16.  Neither member entities, nor their Direct sellers shall ask individuals 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 member entity’s business. Any fees charged to become an Direct seller shall relate directly to the value of materials, products or services provided in return.
    
17.  That  any  commissions  paid  on  fees  charged  to become or stay an Direct seller , which are, in effect, remuneration for recruitment into a sales system, shall be prohibited.
    
18.  That Member entities shall prohibit their Direct sellers from marketing or requiring the purchase by others of any materials that are inconsistent with the member entity’s policies and procedures. Further, member entities shall prohibit independent Direct sellers from marketing any materials that are not approved by the member entity and that are inconsistent with member entity policies and procedures
    
19. No member shall act in a manner detrimental to the interests  of  their  Direct  seller  or other  Direct  selling Member entities.
    
20. No   member   shall   transgress   any   laws   in   the performance of their duties.
    
21. NO Direct seller of any Direct selling Member Entity shall create any cross line in the sales Network of such Direct selling member entity.