G. Responsibilities of Direct seller of a member Entity towards consumer and Direct Selling Member Entity
- That the Direct seller of the Member Entity engaged in direct selling should carry their identity card and not visit
the customer‟s premises without prior appointment/approval.
- That At the initiation of a sales representation, without request, truthfully and clearly identify themselves, the
identity of the direct selling entity, the nature of the goods or services sold and the purpose of the solicitation to the prospective consumer.
- That the Direct seller of the Member Entity shall Offer a prospective consumer accurate and complete
explanations and demonstrations of goods and services, prices, credit terms, terms of payment, return policies, terms of guarantee, after-sales service;
- That the Direct seller of the Member Entity shall Provide the following information to the prospect /
consumers at the time of sale, namely:
• Name, address, registration number or enrollment number, identity proof and telephone number of the direct seller and details of direct selling entity.
• A description of the goods or services to be supplied.
• Explain to the consumer about the goods return policy of the entity in the details before the transaction.
• The Order date, the total amount to be paid by the consumer along with the bill and receipt
• Time and place for inspection of the sample and delivery of good.
• Information of his/her rights to cancel the order and / or to return the product in saleable condition and avail full refund on sums paid.
• Details regarding the complaint redressal mechanism.
- That the Direct seller of the Member Entity shall keep proper book of accounts stating the details of the
products, price, tax and the quantity and such other details in respect of the goods sold by him/her, in such form as per applicable law.
- That the Direct seller of the Member Entity shall not :
• Use misleading, deceptive and / or unfair trade practices.
• Use misleading, false, deceptive, and / or unfair recruiting practices,including misrepresentation of actual or potential sales or earnings and advantages of Direct Selling to any prospective direct seller, in their interaction with prospective direct sellers.
• Make any factual representation to a prospective direct seller that cannot be verified or make any promise that cannot be fulfilled.
• Present any advantages of Direct Selling to any prospective direct seller in a false and / or a deceptive manner.
• Knowingly make, omit, engage, or cause, or permit
to be made, any representation relating to the Direct Selling operation, including remuneration system and agreement between the Direct Selling entity and the direct seller, or the goods and / or services being sold by such direct seller which is false and / or misleading.
• Require or encourage direct sellers recruited by the first mentioned direct seller to purchase goods and / or services in unreasonably large amounts.
• Provide any literature and / or training material not restricted to collateral issued by the Direct Selling entity, to a prospective and / or existing direct sellers both within and outside the parent Direct Selling entity, which has not been approved by the parent Direct Selling entity.
• Require prospective or existing direct sellers to purchase any literature or training materials or sales demonstration equipment.
- Member Entity entities and Direct sellers shall take appropriate steps to safeguard the protection of all private information provided by a consumer, Direct
seller or prospective Direct seller .
- Direct sellers of the Direct selling member entity- approved sales aids, promotional or training materials, whether in hard copy or electronic form, shall:
• Use only materials that comply with the same standards used by the member entity,
• Not make the purchase of such materials a requirement of other independent Direct sellers,
• Provide such materials at not more than the price at which similar material is available generally in the marketplace, without significant profit to the Direct seller , and
• Offer a written return policy that is the same as the return policy of the member entity the Direct seller represents.
- That Direct sellers are not bound directly by this Code, but as a condition of participation in a member entity’s distribution system, shall be required by the member
entity with whom they are affiliated to adhere to rules of
conduct meeting the standards of this Code.