Consumers

Direct selling can best be described as the marketing of products and services directly to consumers in a face-to-face manner, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations.

People like to shop through direct selling as it’s convenient, saves time and makes for a comfortable shopping experience. It’s more personalised than buying at a retail store, and yet retains the benefit of "seeing and touching" the products, unlike direct mail and direct marketing.

Direct sales typically occur through explanation or personal demonstration by an independent direct salesperson (direct seller). The products sold through direct selling globally are as diverse as the people themselves and include: cosmetics and skin care products; home care and personal care items; home appliances; household specialties; household cleaning products; food and nutrition products; toys, books and educational products; financial products; and jewellery and fashion accessories; just to mention a few.

Generally, these products are sold in the context of group presentations (Party Plan), or personal interactions (one-to-one meetings). In a Party Plan approach, the direct seller demonstrates products to a group of guests, invited by the host, either in a home environment or other non-retail location such as the workplace. Personal interactions often occur in the customers’ homes, at a time convenient to them, and could be, for example, over a pre-arranged facial by a skin care company.

Product Guarantees

The Direct Selling Association (DSA) is a national trade association founded in 1972, which currently has a membership of 40 direct selling companies.

As a condition of membership, DSA member companies are committed to operating within the Code of Conduct (Code of Ethics) and to work together to promote the industry to government, consumer bodies and the general public by developing awareness, understanding, trust and credibility for the direct selling channel of distribution.

The Code of Conduct (Code of Ethics) requires that the terms of a guarantee or a warranty, the details and limitations of after-sales service, the name and address of the guarantor, the duration of the guarantee or warranty and the remedial action open to the buyer, should be clearly marked on the product order form (or other accompanying literature). There is also a cooling-off period clause.

Direct Selling companies must ensure that their order form contains this clause which permits the customer to add, reduce or withdraw from the order within a specified period of time (not less than five working days from receipt of products) and to obtain reimbursement of any payment.

The customer remains responsible for returning any products and for any cost related to the return of products.

It is always recommended that consumers purchase from DSA member companies.

What to watch out for

Follow the checklist below before permitting a new direct seller into your home:

• Make an appointment prior to the visit
• Check the identity of the direct seller on arrival
• Ask to see product literature and order forms - all literature should have the company’s name, address and telephone number. In particular, look out for the DSA member logo
• Do not sign any order forms or contracts until you are absolutely sure of the identity of the direct seller and the company they represent.
• Do not make any cash or other payments (cheque, credit card) unless you are completely satisfied with the credentials and integrity of the direct seller
• Once you have made payment, ensure you are given a proper receipt
• Beware of VERBAL promises on special prices and terms of delivery - check that special terms are clearly written in company literature
• Check that the product you are being offered is covered by a GUARANTEE