DSAI Consumer Code of Practice
effective from 30th June 2022
Methods of Selling
1.1 In selling/supplying goods or services, members (and their direct sellers) will comply with all law relevant to that sale/supply.
1.2 A member engaging in direct selling activities in a country outside the Republic of Ireland is encouraged to become a member of that country’s DSA.
If not a member of that country’s (WFDSA affiliated or Seldia affiliated) DSA, it will conduct those activities, if within the EEA, in compliance with Seldia’s European Codes or, if
outside the EEA, in compliance with the WFDSA World Codes of Conduct for direct selling.
1.3 Members (and their direct sellers) will comply with this Code and, in relation to distance or remote sales, with the Annex to this Code.
1.4 It is the duty of all Members to satisfy the Association:
(a) that adequate initial training and information is given to all direct sellers with particular regard to their responsibilities to the public; and that continuing training is made
available throughout a direct seller's contract;
(b) that they have adequate cover against all claims for death, personal injury and damage to property arising out of the demonstration of goods or their use after sale; this cover
may either be an insurance policy with a properly authorised insurance company or by the member carrying the risk itself, subject to the approval of that arrangement by the Association;
(c) that direct sellers are encouraged to take out adequate public liability cover where appropriate.
2.0 Members whose sales and/or recruiting methods include inviting would-be direct sellers and consumers to meetings shall ensure that all invitations:
(a) specify the purpose of the meeting;
(b) explain that those invited are under no obligation to purchase anything.
Invitees shall be given details of a named contact person and telephone number or email address.
3.0 It is the duty of all Members to satisfy the Association by production of written guidance that they have taken all reasonable steps to see that direct sellers act with integrity;
and in particular:
(a) do not use aggressive, misleading, deceptive or unfair sales practices;
(b) make personal or telephone contact with consumers only in a reasonable manner and during reasonable hours;
(c) respect the customers' right to privacy and their right to bring any contact to an end;
(d) describe the goods or products truthfully and accurately;
(e) answer customers' questions honestly and clearly;
(f) make only such verbal or written product claims with respect to product efficacy as are authorized by the member;
(g) give clear and legally accurate information about price and all aspects of after-sales service;
(h) abide by all current guidelines covering the promoting and selling of goods;
(i) refrain from in any way exploiting the customer, especially anyone who is particularly vulnerable.
(j) offer maximum co-operation to a regulatory body or individual (such as the Consumer's Association of Ireland) representing consumers.
Fair Direct Selling
4.1 A phone call to make an appointment to visit a consumer should normally be made between 8am and 9pm.
4.2 When making an appointment to visit a consumer with a view to effecting a sale or soliciting or confirming (or interesting the consumer in placing) an order, the member or
direct seller should not misrepresent the sales process and should:
(i) make the appointment for a reasonable time of day, normally not to start before 8 am and planned to finish by 9pm, unless:
(a) it is a party plan appointment with a later finish time acceptable to the host/hostess; or
(b) he consumer gives his/her specific express consent to a later stated agreed planned finish time which is no later than 10pm (and the visit must not continue after 10pm).
(ii) inform the consumer that the consumer will be under no obligation to place an order;
(iii) inform the consumer as to all other purposes of the visit, e.g. to demonstrate/preview products;
(iv) if the visit is not a party plan sales event, inform the consumer as to the likely length of the visit, i.e. the total time which the direct seller is likely to spend in the
consumer’s home, including any breaks that the direct seller may take;
(v) inform the consumer as to the different stages, if any, involved in the visit (including the likely length of any demonstration, or DVD presentation);
(vi) where products are targeted at the elderly or infirm, check for any vulnerability (lack of understanding etc) that the consumer might have. In such cases, the member
should provide, and require its direct sellers to use, an effective screening system able to identify vulnerable consumers.
(vii) where a consumer is identified as vulnerable, take all reasonable steps to ensure that the vulnerability is not exploited, even unintentionally.
4.3 The following will normally be considered as examples of unfair direct selling practices:
(i) failing to comply with paragraph 4.1 and 4.2 above,
(ii) failing to leave when the consumer requests a termination of a visit;
(iii) an unreasonably long visit to the consumer’s home;
(iv) falsely creating the impression that a consumer has won or will win a prize;
(v) offering a discounted price unless the undiscounted price quoted is a genuine price at which retail sales of a significant number of goods could reasonably have been
expected to have been made;
(vi) offering a “there and then” discount except where the discounted price is €500 or less.
4.4 A discount offered during a visit to a consumer’s home or place of work is a “there and then” discount unless, at the time it is offered, the consumer is informed that the discount
will be available for at least a week thereafter.
4.5 A visit is unreasonably long if it exceeds the period reasonably necessary to carry out the purposes of the visit: e.g. demonstration of the product; taking measurements (e.g. for
home furnishings); writing out a quotation; ascertaining whether the consumer wishes to buy. In the case of a straightforward product easily demonstrated, a visit of reasonable
length might not exceed 30 minutes. Party plan visits might well be much longer. Apart from party plan visits, a visit exceeding three hours would normally be too long.
5.0 Members must be able to satisfy the Association that:
(a) appropriate steps are taken to protect private information given by consumers or potential consumers;
(b) they are familiar with current legislation on trade and consumer protection and Data Protection;
(c) where appropriate they inform direct sellers of their relevant legal obligations and keep them up to date with all changes as and when appropriate.
Advertisements
6. (a) Members' advertisements shall be truthful and accurate and, as a general rule, shall incorporate a reference to their membership of the Association. Members' sales and
promotional literature shall also be truthful and accurate and shall always contain a reference to their membership of the Association. Advertisements must be easily recognisable
as marketing communications and must disclose their commercial intent.
(b) Members must be able to satisfy the Association that they comply with the Irish codes of Advertising Practice and Sales Promotion where relevant.
(c) Where Members use direct mail or telephone selling, they will make use of the mailing preference service of IDMA and telephone preference serviceof Unsolicited Contracts and
National Directory Database.
Identification
7. All direct sellers should immediately:
(a) identify themselves to prospective consumers;
(b) explain the purpose of their approach;
(c) identify the member or third party supplier and the goods.
8. Members will supply a copy of this Code of Practice to all direct sellers. This copy may be provided in hard copy or electronic format or via a link towhere the Code can be viewed on
the Member’s website or the DSAI website. It must be available for any customer. Members will publicise this Code to consumers, including via the following: (i) including on the
Member’s website, this Code or a link to it or a statement of where on the DSAI website it can be accessed, and (ii) including on the customer order form a reference to it and where it can be found.
Order Forms
9.1 Consumers' order forms must be approved by the Association and Code Regulator before they are used. They must:
(a) be clear and legible.
(b) contain the member's full name and address;
(c) set out any guarantee referred to in Rule 10;
(d) set out the consumer’s right of cancellation referred to in Rule 12;
(e) show that the member belongs to the Association and contain the Association's logo;
(f) give contact details of the direct seller and indicate the direct seller's contractual relationship with the consumer;
(g) indicate that the DSAI has a dispute resolution procedure.
9.2 A copy of an order form must be given to the customer when it is placed. Either the order form, or some other document given to, or be available in a durable medium, for the
customer at or before the time of the order, must contain clear information as to the terms and conditions of supply and must include information as to delivery/completion,
which shall be within 30 days of the order.
9.3 The customer/contract order form of a third party supplier is not subject to the approval of the Code Regulator and may not contain all the information listed at 9.1 above. In such
circumstances the consumer will be given an additional piece of paper, a notice, which must be approved by the Code Regulator and which gives the following information:
(a) the identity, address and other contact details of the Member;
(b) a statement (together with the DSAI logo) that the Member is a Member of the Direct Selling Association of Ireland;
(c) a statement that the Member is committed to having its direct sellers comply by the DSAI Consumer Code, together with information about how to access that code;
(d) information about the DSAI dispute resolution procedure and how to access it.
Guarantees
10.1 Any guarantee of goods shall be clear and easy to understand. It must exceed the consumer's existing legal rights, and not affect his statutory rightsThe terms of all guarantees must
be approved by the Association and the Code Administrator before they are used.
10.2 The Member will check for compliance guarantee provided by its third party supplier.
After Sales Service
11. When an after sales service is offered, details and limitations must be clearly stated in writing. Where a consumer would normally expect an after sales service but none is offered,
this must be stated in writing and given to the consumer.
Rights of Cancellation & Refund
12.1 Members must ensure that customers are given at least the cancellation rights required to be given by law and must include at least the following:
(i) details and limitations of after-sales services;
(ii) the name and address of the guarantor and
(iii) the remedial action open to the customer.
12.2 Where the Member is unable to supply goods or services, the Member must make a full refund of any price or deposit, unless the customer agrees to accept substitute goods or
services.
12.3 Where a third party supplier is unable to supply goods or services, the Member will use its best endeavours to ensure the third party supplier makes a full refund of any price or
deposit, unless the customer agrees to accept substitute goods or service.
Pre-payments
13. Where a consumer makes a pre-payment (or pays a deposit) under a contract to buy goods from a direct seller who is acting a principal (retailer), the direct seller shall refund that
pre-payment in the event that delivery of the goods is not possible. If the direct seller is unable to (or fails to) refund the consumer's pre-payment, the Member will either deliver the
goods or will itself make the refund.
Self Regulation & Complaints Handling
14. Members must:
(a) make regular audits of systems, procedures and documentation to prove compliance with this code of practice;
(b) inform consumers in writing of to whom (name & postal address) they may address any complaint;
(c) have effective procedures for dealing with consumers’ complaints and responding within a reasonable time (normally within ten working days) at no cost to the consumer.
(d) keep records of consumers' complaints and of the action taken in response.
Code Regulation
15.1 DSAI Codes are supervised and administered by an independent, legally qualified Regulator appointed by the Board on behalf of the Association.
15.2 The Code Regulator shall:
(a) satisfy himself that members' trading practices and documentation comply with the Codes;
(b) report any breach of the Codes to the member's Chief Executive and recommend appropriate remedial action where necessary;
(c) investigate any failure by a member to act upon any recommendation;
(d) report any failure by a member to remedy any breach to the Board of the Association;
(e) publish an annual report which includes any suggestions the Regulator has for the improvement of the Code in the light of experience.
Breaches of the Consumer Code
16 Any complaint about a breach of the Consumer Code (or its Annex) shall be treated in the following way.
(a) The complainant may refer it:
(i) to the Chief Executive of the member; or
(ii) the Director General of the Association.
(b) If the complainant is dissatisfied with any solution proposed by the member, or it is referred initially to the Director General, the following procedure will be used:
(i) The complainant will be asked to set out details of the complaint in writing;
(ii) The Director General will send a copy of the written complaint to the member requesting prompt remedial action.
The complainant will be kept informed at all times;
(iii) Although there is no time limit within which the consumer must take action, the seller has 21 days from the consumer action to notify the Director General that the matter
has been resolved. This period may be extended for reasons such as, but not restricted to, illness, holidays, lack of information etc.
(c) If the complainant is dissatisfied with the recommended action, or if the member fails to act as required by the Director General, the Director General shall refer the complaint
to the Code Regulator.
Investigations by the Code Regulator
17.1 The Code Regulator will investigate any complaint referred to him, obtain evidence relevant to the issues complained from the complainant, from the member and any other
relevant person and make a written adjudication as quickly as possible.
17.2 The adjudication is binding on the member and any direct seller; the complainant is not bound by the adjudication.
Sanctions
18.1 Where a member is found to be in breach of the Consumer Code (including the Annex), the Code Regulator may require the member:
(a) to repay all money paid by the complainant;
(b) to replace or repair any product without charge;
(c) to pay any costs incurred by the Code Regulator for technical advice or testing;
(d) to take all reasonable steps, including any specified steps, to prevent a recurrence of the breach;
(e) to pay compensation (not exceeding €6000) to the complainant.
18.2 The Code Regulator may recommend that the member appear before the Disciplinary Committee and may make recommendations as to the action it should take.
Disciplinary Committee
19.1 The Disciplinary Committee shall consist of either two DSAI Board Members and three Independent Members nominated by the Board or one DSAI Board Member and two
Independent Members nominated by the Board. It will be chaired by a DSAI Board member. The Disciplinary Committee shall consider all the evidence and may call for written or oral evidence to the issues complained from any person. The Disciplinary Committee’s decision will formally be a recommendation to the Board of the Association of any one or more of the following:
• no action be taken;
• the Member be required to undertake a specified course of remedial action;
• issue by the Board of a formal warning;
• suspension of the member from the DSAI for a stated period;
• expulsion of the member from the DSAI.
Suspension and expulsion can be “suspended”, i.e. not to take effect if one or more conditions are met.
19.2 The Disciplinary Committee shall send its report to the complainant and the member and the Board of the Association. The member is bound by the adjudication.
19.3 The Board may not reverse or overturn the decision of the Disciplinary Committee. Upon application by the member, however, or on its own initiative, the Board may refer
the decision back to the Disciplinary Committee for re-consideration.
19.4 The Competition and Consumer Protection Commission will be invited to send an observer to all Disciplinary Committee meetings and any meetings of the Board of the Association
which considers Disciplinary Committee recommendations.
Complaints from outside the Republic of Ireland
20.1 A member which is the subject of a complaint in a country in which it is not a DSA member, must accept jurisdiction of the Code Regulator in its home country (or if the
company is not a member in its home country, any country in which it is a DSA member), and shall bear reasonable costs (including translation costs) incurred by the DSA/Code
Regulator in handling the complaint.
20.2 Subject to the following provisions, any complaint from overseas handled by the DSAI will be handled in the same way as a complaint from the Republic of Ireland.
20.3 In considering a complaint from overseas, the Code Regulator may (at his/her discretion) consult the Code Regulator in the country from which the complaint arose.
20.4 In evaluating a complaint from overseas, the Code Regulator will apply, in order of priority,
(i) the standards of the Code of Ethics in the country in which the complaint is filed (if those standards can easily be determined), or
(ii) the standards of the DSAI’s Codes, or
(iii) the standards of the Code of Ethics in the subject company’s home country, or,
(iv) at a minimum, the standards set forth in either, as relevant, the Seldia or WFDSA Codes of Ethics.
Amendments and Updating
21. This code may be amended or updated only on the orders of the majority of the Board.
Definitions
"the Association" and “DSAI” means the Direct Selling Association of Ireland;
“the Board” is made up of an elected representative from each DSAI member company
"direct seller" means any natural or legal person involved in direct selling in any capacity;
"direct selling" means the direct selling of consumer products either in the home or away from normal retail premises by which a salesperson either: demonstrates the product, either physically or digitally, or presents a product catalogue; or, collects an order; or arranges for the delivery of the products; or collects payment for the product or arranges for credit;
“EEA” means the European Economic Area;
"member" means a member of the Association and includes its employees;
"product" means any goods or services;
“Seldia” refers to the organisation of that name which is the European Federation of Direct Selling Associations;
“WFDSA” means the World Federation of Direct Selling Associations.
"Third party supplier" is a person or organisation which is not a DSAI member and which, as a result of direct selling activity by a DSAI member (or a direct seller acting for the member), enters a contract with a consumer to supply products (goods or services) to the consumer.
ANNEX TO CODE OF PRACTICE FOR CONSUMERS
This Annex gives additional protection to consumers who buy goods or services by remote or distance sales contracts
Remote or Distance Selling
1.0 This Annex supplements the DSAI’s Code of Practice for Consumers. It applies where goods or services are sold to consumers by sales which are remote sales or distance sales,
for example where a consumer places an order over the telephone, by mail or over the internet. In those cases Members (and their direct sellers) will comply with:
(a) the terms of this Annex;
(b) the requirements of the European Union (Consumer Information, Cancellation and other Rights) Regulations 2013.
Consumer Information
2.1 Members will ensure that consumers are given full information, clear and comprehensible, both before the contract is concluded and also in writing (or other durable form) before
or at the time of performance of the contract or delivery of the goods.
2.2 The information must include details of the consumer’s right of cancellation under paragraph 3 below.
2.3 The information must also include: the seller’s/supplier’s name and address, a description of the main characteristics of the goods or services, the price (including for how long it
is valid and whether it is inclusive of VAT and delivery), arrangements for delivery/performance and payment, charges for delivery (where the price does not include them).
2.4 The information given in durable form must also include: the conditions and procedures for exercise of the consumer’s right of cancellation, a geographical address where any
complaints can be sent; information as to any guarantees or after-sales services.
2.5 Members will observe the information-giving requirements of the European Union (Consumer Information, Cancellation and other Rights) Regulations 2013.
Rights of Cancellation
3.1 Members must ensure that customers are given at least the cancellation rights required to be given by law.
3.2 Where the member is unable to supply goods or services, the member must make a full refund of any price or deposit, unless the customer agrees to accept substitute goods
or services.
Performance
4.0 Unless otherwise agreed, delivery/completion shall be within 30 days of the order.
Fraudulent Use of Payment Card
5.0 Where, in relation to a remote or distance sale, fraudulent use is made of a consumer’s payment card by someone else not acting as his agent, the consumer is entitled to cancel the
payment and to have his account re-credited. Members will co-operate with card issuers in ensuring this right of consumers is honoured.