New Period in Direct Selling: 30 -day right of withdrawal to consumers

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Lerato Khumalo

The Ministry of Commerce is preparing to bring comprehensive rules for the sector by preparing a new regulation draft regarding the direct sales system. Without a fixed store or retail point, in this system, which is based on the sale of products and services with one -to -one communication, important steps are taken to protect consumers.

The “Draft Regulation on Direct Sales” prepared by the Ministry was opened to the opinion of the public and related institutions. In the draft, many issues such as the operating rules of direct sales companies, the entry-exit conditions of the sellers to the system and the consumer rights are clarified.

One of the most remarkable substances of the draft was the 30 -day right of withdrawal to consumers. This period, which is currently 14 days, is increased to 30 days in direct sales. The consumer will be able to give up shopping during this period without any justification and paying criminal conditions. The seller will be obliged to return all the payments made within 30 days after reaching the product, without reflecting the expense and at one time.

Forbidden to unreal promises

With the draft, it is forbidden to give promises that mislead consumers in the direct sales system. Pressure, deception or discomfort will be prevented from inclusion of people in the system. In addition, the amount of commission and award offered by companies directly to sellers will not exceed 40 percent of their annual net sales.

Authority Certificate requirement

According to the new regulation, the companies that will show direct sales activities will be required to receive a “sales authorization certificate öne from the Ministry of Commerce. This document will be valid for three years and additional documents will be requested by considering the health and safety of the consumer.

The seller will have to have the age of 18 to join the system. In addition, the seller will be able to leave the system without any criminal obligations. The unused goods in the hands of the seller who left the system within 30 days after the entry will be taken back by the company.

Some products except the right to withdrawal

In the draft, exceptions could not be applied to the right of withdrawal. The consumer will not be able to use this right in products prepared in line with special requests and personal needs, hygiene products whose packaging has been opened and the installation/installation has completed products.

With the draft regulation, direct sales companies are obliged to inform the consumer. Companies; All information about products and services, including the right of withdrawal by means of physical contact such as mail, SMS, e-mail or the Internet, will have to convey to the consumer clearly and understandable.

With this regulation, the Ministry of Commerce aims to create a fair, transparent and reliable structure in the sector.