Direct Selling Association Announces Release of Code of Ethics Administrator Report

April 8, 2016

WASHINGTON, D.C. — The Direct Selling Association (DSA) today announced the release of its first annual Code of Ethics Administrator Report, an analysis of issues addressed by the DSA Code of Ethics Administrator in specific areas of enforcement between January and December 2015.

“We are proud of the work we’ve done to ensure our self-regulatory system remains responsive to consumers and other stakeholders, including implementing new expanded and specific standards on the presentation of earnings opportunities made by direct sellers,” said DSA President Joseph N. Mariano, “Today’s announcement ensures that everyone understands how our self-regulation system works and effectively encourages consumers, salespeople, and others to use our Code and benefit from it.  We also acknowledge that greater transparency around Code violations — in addition to enhancing our consumer protection policies — can help deter anti-consumer behavior.” 

The report notes that DSA’s Code of Ethics Administrator addressed 114 consumer or salesperson issues in 11 areas of Code enforcement, of which 98% have been resolved.  The outstanding 2%, reflect matters that were responded to in a timely matter but that were not resolved when the report was compiled. These matters have been resolved in the intervening time period.  The Code Administrator receives broad authority from DSA’s Board of Directors to adjudicate suspected Code violations, including protecting direct selling consultants from undue financial risk by requiring that member companies repurchase unused inventory.

DSA’s Code of Ethics, a series of policies that protect consumers and members of the direct selling salesforce, was first established in 1970 and has been modified on multiple occasions to ensure its standards meet or exceed changing stakeholder expectations.

On January 1, 2016 a series of enhancements to DSA’s Code of Ethics took effect, including requiring the handling and resolution of complaints filed with DSA’s Code of Ethics Administrator to be made public. 

A copy of the Administrator’s report is available can be found at dsa.org/consumerprotection/code-resources/code-report.  Consumers may report suspected Code of Ethics violations to DSA’s Code of Ethics Administrator at dsa.org/consumerprotection/filing-a-code-complaint/complaint-form.

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I have additional questions, who can I contact?

You may contact David Riddy, DSA's Director of Communications & Marketing, at (202) 416-6408.