ADSEI

B. General Responsibilities of Direct Selling Member Entity

1. Direct Selling Member Entity must be a registered legal entity under the laws of India.
   
2. The  promoter  or  key  management personnel  of  the Direct Selling Member Entity should not have been convicted of any criminal offence punishable with imprisonment in last 5 years by any Court of competent jurisdiction.
   
3. Direct Selling Member Entity shall have an office with identified jurisdiction of  its  operation in  the  State  to enable the consumers and direct seller to acquaint themselves  with  price  of  products,  return  or replacement of products and efficient delivery of goods and services, and post-sale redressal of grievance.
   
4. Direct Selling Member Entity shall be the owner, holder, licensee  of  a  trademark, service  mark  or  any  other identification mark which identifies the entity with the goods to be sold or supplied or services to be rendered.
   
5. Member Entities and their Direct sellers must comply with all requirements of law. While this Code does not restate all   legal   obligations,   compliance   with   all pertinent  laws  by  member  entities  and  their  Direct sellers is a condition of acceptance beyond continuing membership in ADSEI .
   
6. Direct Selling Member Entity shall conduct their Direct selling Business toward other Direct Selling Member Entities which is inconsistence and non-compliance with this Code and all pertinent laws applicable in India.
   
7. Direct  sellers  shall  respect  any  lack  of  commercial experience of consumers. Direct sellers shall not abuse the      trust   of   individual   consumers,   or   exploit   a consumer’s  age,  illness,  handicap,  lack  of understanding or unfamiliarity with a language.
   
8. Member entities  shall remunerate Direct seller on the basis   of   sales   of   products,   including   services, purchased  by  any  person  for  actual  use  or consumption. Such remuneration may be based on the sales and personal consumption by the Direct sellers and their down lines.
   
9. Direct Selling Member Entity shall issue proper identity document(s) to its Direct Sellers.
   
10. Direct Selling Member Entity shall maintain proper records either manual or electronic of their business dealings, with complete details of their goods, services, terms of contract, price, income plan, details of direct sellers, including but not limited to enrolment, termination, active status, earning etc.
    
11. Direct   Selling   Member   Entity   shall   maintain   a “Register of Direct Sellers” wherein relevant details of each enrolled Direct Seller shall be updated and maintained and the details of Direct Sellers shall include and not be limited to verified proof of address, proof of identity and PAN.
    
12. Direct Selling Member Entity shall maintain proper and  updated  website with  all  relevant details  of  the entity, contact information, its management, products, product information, product, quality certificate, price, complete  income  plan,  terms  of  contract  with  direct seller and complaint redressal mechanism for direct sellers and consumers. The website should have space for registering consumer complaints and should ensure that grievances are addressed within 45 days of making such complaints.
    
13. Direct Selling Member Entity shall provide to all direct sellers their periodic account / information concerning, as applicable, sales, purchases, details of earnings, commissions, bonus and other relevant data, in accordance with agreement with the direct sellers. All financial dues shall be paid and any withholding made in a commercially reasonable manner.
    
14. Direct Selling Member Entity shall monitor the value of the purchases of all its Direct Sellers/Distributors on a monthly basis and once the purchase value crosses the    GST   threshold;   it   must   intimate   the   Direct seller/Distributor to pay the GST.
    
15. That the relationship between Direct Selling member entity and Direct Seller shall be determined as per the written      agreement  between  the  parties  which  shall contain the  rights and obligations that are expressly provided as conditions for the conduct of Direct Selling business as well as provide for the obligation of the direct  selling  member  entity  and  the  direct  seller  in terms of these guidelines.
    
16. That     All  other  rights  and  obligations  shall  be
    determined as per the express terms of written agreement between a Direct Selling member entity and Direct Seller.
    
17. The Direct Selling member entity will be liable for grievances arising out of sale of products, services or business opportunity by its Direct Sellers.
    
18. It  will  be  the  responsibility  of  the  Direct  Selling member entity to monitor and control the practices/methods adopted by the Direct Sellers.
    
19. That the Direct sellers are purchasing the product for resale, for their own use/ consumption (i.e., “self- consumption”, “personal consumption” or “internal consumption”) or for other legitimate purposes. Hence, The Code  recognizes  this  as  a  longstanding  and accepted practice in direct selling and does not prohibit compensation based on the purchases of Direct sellers for personal use.
    
20. That Member entities shall provide adequate training to enable Direct sellers to operate ethically.
    
21. That Member entity shall take diligent, reasonable steps to ensure that promotional or training materials produced by their Direct sellers comply with the provisions of this Code and are not false, misleading or deceptive.
    
22. That  Compensation received  by  Direct  Sellers  for sales of training and promotional materials to become or stay a Direct Seller which is, in effect, remuneration for recruiting Direct Sellers into a sales system, shall be prohibited.
    
23. That  monitoring  on  Social  Media  Post  by  Direct selling member Entity- it may be impractical for member entities to review every Direct seller’s communication (e.g. social media posts), hence Direct seller and Direct selling Entity shall be prohibited to unauthorised/illegal/baseless communication on the social media.
    
24. That Member entity shall must abide by the Laws. "Laws"  here  include  local,  regional,  national,  and international  laws  and  regulations,  as  well  as  any policies and procedures of the organizations to which
    the Direct selling member entity belongs such as ADSEI bylaws, policies, etc.
    
25. That   ADSEI   members   should   follow   generally accepted best practices unless there is a compelling ethical reason to do otherwise, To minimize the possibility of Directly, indirectly or intentionally or unintentionally harming others specially ADSEI Members.  ,  Here  "harm"  means  negative consequences, especially  when  those  consequences are significant and unjust. Examples of harm include unjustified physical or mental injury, unjustified destruction or disclosure of information, and unjustified damage to property, reputation, and the environment. This list is not exhaustive.
    
26. ADSEI members should be transparent and provide full disclosure of all required information and details. Honesty is an essential component of trustworthiness.
    
27. ADSEI   members   should   not   misrepresent   the Association’s policies or  procedures, and  should not speak on behalf of the Association unless authorized to do so.
    
28. ADSEI members should involve in Developing new
    ideas,   inventions,   creative   works,   and   computing artifacts and give to credit to another member entity for the same if they propose in the interest of the ADSEI.
    
29.  That the responsibility of respecting privacy applies to  ADSEI  members  in  a  particularly  profound  way. Technology enables the collection, monitoring, and exchange  of  personal  information  quickly, inexpensively, and often without the knowledge of the people affected through the ADSEI sources. ADSEI members who have Personal information gathered for a specific purpose should not be used for other purposes without the person's consent.
    
30. That any Direct Seller of the Direct selling Member entity wants to switch any Direct Seller Network, in the same Direct selling entity, due to any reason he/she must fulfilled following condition –
    i.  At  least  4  month  time  gap   (Waiting  period) between left  the  old  network  and  joining  new network, should be elapsed/completed.
    ii. Direct seller shall not be entitled to receive payout during said waiting period.
    iii. The  recruitment  of  the  Direct  Seller  shall  be treated as a fresher in other team and he/she cannot claim for the dues of old network team.
    
31. That the  Compensation plan/Business Plan of the Direct selling Member entity shall be fully mathematically.