G. Responsibilities  of  Direct  seller  of  a  member Entity   towards   consumer   and   Direct   Selling Member Entity

  1. 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.
  2. 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.
  3. 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;
  4. 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.
  5. 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.
  6. 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.
  7. 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 .
  8. 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.
  9. 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.
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