Direct selling companies that apply for membership with us are considered pending applicants for at least one full year before being approved for membership by our Board of Directors.
Our legal department reviews a company’s materials and requests information from various sources, including the Better Business Bureaus and Attorneys General, to ensure each and every applicant for membership meets the standards of DSA’s Code of Ethics. The one-year waiting period begins only when all required materials are received and the applicant company is found to be in compliance with DSA's Code of Ethics. Our legal department will review company materials and reevaluate compliance at the conclusion of the one-year waiting period before presenting the applicant to the DSA Board of Directors.
During the pending period companies are able to enjoy all of the membership benefits available to our active members, with the exception of claiming membership status and using the DSA logo. The pending applicants are not members until DSA’s Board of Directors approves the company for active membership.
Our staff members who specialize in DSA’s Code of Ethics review a company’s business plan and other documents. The review process creates an opportunity for our staff to advise on areas where companies may not meet the standards expected by state and federal regulators. We notify companies of potential problem areas and offer suggestions for correcting them.
DSA’s legal staff reviews marketing plans in light of general legal and legislative trends across the country. This review is not meant as a substitute for a company’s own legal counsel, but is intended only to highlight areas generally of importance to direct sellers, and to provide background information to the DSA Board of Directors. For a more specific evaluation of marketing plans, companies should consult an attorney familiar with the details of your operating procedures.
Each year, we randomly select 20% of our active member companies for a full review of their materials to verify continued compliance with the Code. Ongoing compliance with the Code is a requirement to maintain membership in the Association. Companies are responsible for notifying DSA of any significant changes in marketing or compensation plans or materials.
DSA members earn the right to use our logo after our Board of Directors has approved membership status. Displaying our logo is a representation of a company’s commitment to our high standard of the best business ethics.
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