Direct Selling Association Announces Support for S. 3 to Protect Consumers

December 4, 2018

Washington, DC – The Direct Selling Association (DSA) announces its support for S. 3, consumer protection legislation introduced by Senator Orrin Hatch (R-UT) The legislation will help consumers avoid illegal scams, and provide definitive guidance to direct selling companies in the industry on acceptable, ethical business practices.

“I applaud Senator Hatch for introduction of this critical legislation that will provide clarity to so many direct sellers across the United States. Direct sellers in Utah and across the country are appreciative that one of the last bills he will introduce in his over 40 years as a member of the United States Senate will provide clarity for such an important business model in Utah and across the country.” said DSA President Joe Mariano.

S.3 is similar to H.R. 3409, introduced last year by Reps. Marsha Blackburn (R-TN) and Marc Veasey (D-TX) that has 50 co-sponsors. It would define a pyramid scheme in federal statute by using a similar definition as codified by dozens of states and in numerous court decisions. It would require all direct selling companies to adopt the same buy back policy as required under DSA’s Code of Ethics. DSA member companies must buy back unused inventory at 90 percent or more of the original cost—an unparalleled consumer protection that is not seen outside of the industry.

Mariano added, “Enactment of S. 3 and H.R. 3409 would provide clarity in federal statute and support the industry’s and association’s efforts to raise the bar in self-regulation next year with the creation of the Direct Selling Self-Regulatory Council. We are excited that direct selling is positioned to be the business for selling products to consumers in the 21st century.”

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I have additional questions, who can I contact?

You may contact Adolfo Franco, Executive Vice President.