1. Scope of application
The European Direct Selling Code (hereinafter referred to as “the Code”) covers relations between direct selling companies and distributors, between direct selling companies and consumers, and between direct selling companies and distributors.

2. Objectives
The Code aims to achieve the following objectives:

1. the satisfaction and protection of consumers.
2. the satisfaction and protection of distributors.
3. III. the promotion of fair competition within the framework of free enterprise.
4. the improvement of the public image of direct selling.

The Code contains standards of ethical behavior for direct selling companies and distributors. National Direct Selling Associations may adapt these rules to national legal requirements or local situations without making substantial changes. Companies and distributors are required to comply with the law, and therefore the Code does not cover all legal obligations. The use of Codes to support industry standards is recommended.

3. Glossary of terms
For the purposes of this Code:

1. “Direct selling”: any method of marketing or selling that relies on personal contact between a seller (hereinafter referred to as a “distributor”) and a consumer and requires a personal or individual explanation or demonstration of the products, physically or digitally, outside a retail outlet.
2. “Distributor”: any natural or legal person who belongs to a distribution system of a direct selling company and who sells, facilitates, or participates in the sale of that company’s products. Distributors may be authorized to recruit other distributors. A distributor may be an independent sales agent, an independent distributor, an independent contractor, an independent contract holder, an independent representative, or any other similar commercial representative of a company.
3. “Consumer”: a natural person who purchases products for purposes that can be considered unrelated to their commercial, industrial, or professional activity.
4. “Distribution system”: refers to any organization and method of marketing products.
5. “Product”: includes goods, whether tangible or intangible, and services.
6. “Portuguese Direct Selling Institute” (hereinafter referred to as IPVD): means a national association of direct selling companies that represents the interests of direct selling in a European country and is a member of Seldia.
7. “Direct Selling Company” or “Company”: means a business entity that markets products associated with its brand or service mark, or any identifying symbol, through a distribution system based on direct selling and is a member of the DSA.
8. “Group selling”: means direct selling to a group of consumers invited by a host for that purpose.
9. “Order Form”: any printed or written document that confirms the details of a consumer’s order and provides them with a sales receipt. In the case of Internet purchases, this is a form containing all the terms and conditions of the offer and purchase, made available on a medium.
10. “Profit”: refers to the income earned by a distributor. These profits may take the form of commissions, trade margins, fixed payments, bonuses, subsidies, or others.
11. “Business support”: any goods or services intended to support distributors in the exercise and development of their activities and which (a) are intended to be sold to distributors or provided to them free of charge; and (b) are not intended to be resold to consumers.
12. “Fee” means:
    i. any cash payment; or
    ii. any payment for the purchase of marketing or support materials; a payment that is required of a distributor when they join a direct selling company’s distribution system or, occasionally, as a condition of continuing to participate in that distribution system.
13. “Recruitment”: means any activity conducted with the aim of inviting a person to become a distributor.
14. “IPVD Code Administrator”: means a person or independent entity appointed by the IPVD to monitor compliance with the IPVD Code by member companies and to resolve complaints under this Code.

4. Associations
All national direct selling associations undertake to adopt a code of conduct in accordance with the Code as a condition of admission and continued membership of SELDIA.

5. Companies
Each IPVD member company undertakes to comply with the national code as a condition for admission and continued membership of the IPVD. It must also inform the public of its membership of the IPVD and its adherence to the code.
Each Seldia member company undertakes to comply with the Code as a condition of admission and continued membership of Seldia for its direct selling activities in a country of the European Economic Area (EEA): a) without the IPVD; b) without the IPVD as a member of Seldia.
If the rules of the IPVD national code applicable to a company that is not a member of Seldia conflict with the rules of the Code, the rules of the national code shall prevail.

6. Distributors
Distributors are not directly bound by the Code and national codes, but must comply with the principles set out therein or the relevant standards of conduct as a condition of joining or remaining in the distribution systems of companies.

7. Self-regulation
The Code is a self-regulatory tool for the direct selling industry. Its obligations may require a higher level of ethical behavior than existing legal obligations. Non-compliance does not give rise to any civil liability under the law.

8. National law
Companies and distributors must comply with all requirements of the national law of the country in which they operate.

9. Extraterritorial effect
With regard to direct selling activities outside their country of origin, the IPVD undertakes to require each of its members, as a condition of membership and continued membership, to comply with the Code for direct selling activities in the European Economic Area (EEA) or to comply with the Code of Conduct of the World Federation of Direct Selling Associations (WFDSA) for direct selling activities outside the EEA, unless such activities fall under the jurisdiction of the Codes of Conduct of another direct selling association (DSA) affiliated with SELDIA or the WFDSA.
If a company receives a complaint of non-compliance with the code from a country whose DSA is not a member, the company shall accept the jurisdiction of the Code Administrator (CA) of its country of origin (or, if the company is not affiliated in its country of origin, of any country in which it is a member of a DSA) and shall bear the reasonable costs incurred by the CA of its country of origin in connection with the resolution of the complaint. In addition, the AC of the AVD of the country of origin may coordinate with the AC of the country that initiated the code complaint, and in assessing the complaint, the following standards shall apply in the following order of priority: (1) the code of ethics of the country in which the complaint is filed; or (2) the code of ethics of the home country of the company receiving the complaint; or (3) at a minimum, the code of ethics of the home country of the company receiving the complaint; or the standards set forth in the WFDSA Code or Code of Ethics, where applicable.

2.1 Prohibited Practices
Distributors shall not use sales practices that are ambiguous, misleading, or unfair.

2.2 Identification and Demonstration
Distributors, at the beginning of any contact with a consumer, shall identify themselves, as well as identify the Company, and explain the purpose of their approach.
In the case of a meeting sale, Distributors shall make clear the purpose of the meeting, both to the hostess and to the guests. In the case of a sale at a meeting, Resellers must make the purpose of the meeting clear to both the host and the guests.

Before concluding the sale, Resellers must provide an explanation and/or demonstration of the product, as well as the following information:

a) The company’s identification and address;
b) The main characteristics of the products;
c) The price of the products including all taxes;
d) The cost of delivery, where applicable;
e) The terms of payment, credit terms, delivery, or fulfillment;
f) The existence of the right of withdrawal or cancellation;
g) The warranty conditions;
h) The conditions and limitations of the after-sales service.

The information provided to the consumer must be clear and understandable, in accordance with the principles of good faith in commercial transactions and the principles of protection of persons considered unfit, under national law, to assume responsibilities, such as minors.

2.3 Answers to Questions
Resellers must provide accurate and understandable answers to all consumer questions regarding the product and the offer.

2.4 Order Form
A written Order Form must be given to the customer at the time of sale, which must identify the Company and the Reseller and contain all contact information for the company and, if applicable, the Reseller, and all conditions of sale (corresponding to item 2.2.). All conditions must be clearly legible.

2.5 Verbal Promises
Resellers may only make verbal promises regarding the product if authorized by the Company.

2.6 Cancellation Period and Product Returns
Companies and Resellers must ensure that the Order Form contains a cancellation clause, whether or not this is a legal requirement, allowing the consumer to cancel the order within a minimum period of seven calendar days and obtain a refund of any payment made or products sold. Companies and Resellers offering an unconditional right of return must do so in writing.

2.7 Warranty and After-Sales Service
The terms of the warranty or certificate, the details and limitations of the after-sales service, the name and address of the entity responsible for the warranty, the duration of the warranty, and the alternative option open to the buyer must be clearly stated on the Order Form, in other literature attached to or supplied with the product.

2.8 Literature
Promotional literature or mailings shall not contain any product descriptions, statements, or illustrations that are ambiguous or misleading, and shall contain the name and telephone number of the Company.

2.9 Testimonials
Companies and Dealers shall not refer to any testimonial or endorsement that is not authorized and true, that is obsolete or no longer applicable, unrelated to the offer, or used in any way that could mislead the consumer.

2.10 Comparison and Defamation
Companies and Resellers shall avoid using comparisons that may be misleading or that may be incompatible with the principles of fair competition. Points of comparison shall not be selected unfairly and shall be based on facts that can be substantiated. Companies and Resellers shall not denigrate any company or product, either directly or by implication. Companies and Dealers should not unfairly take advantage of the reputation associated with the trade name or symbol of another company or product.

2.11 Respect for Privacy
Personal, telephone, or electronic contacts should be made in a reasonable manner and during convenient hours so as not to cause intrusion. A Dealer should stop the demonstration or presentation if the consumer asks them to.

2.12 Fairness
Distributors shall not abuse the trust of consumers, shall respect their lack of commercial experience, and shall not take advantage of the age, illness, lack of understanding, or lack of language skills of the consumer.

2.13 Referral Sales
Companies and Resellers shall not induce a customer to purchase goods or services on the basis that they can reduce or recover the cost of the purchase if they refer potential customers for similar purchases, if such reductions or recoveries are contingent on an uncertain future event.

2.14 Compliance
Any order must be fulfilled as quickly as possible and in any case within 30 days from the day after the consumer signed the order, unless both parties have agreed otherwise.
Consumers must be informed if companies or Resellers are unable to fulfill their part of the contract on the basis that the products ordered are not available. In this case, consumers may choose to:

• Obtain a refund of any sums paid as soon as possible and, in any case, within 30 days, or
• Receive from the company or Reseller products of equivalent quality and value, provided that this possibility was offered before the conclusion of the contract or in the contract itself.

3.1 Responsibility of Companies

The primary responsibility for compliance with the Code lies with each Company. In the event of any violation of the Code, Companies shall make every reasonable effort to satisfy the complainant.

3.2 Responsibility of AVDs

AVDs shall appoint a person responsible for handling complaints. They shall also make all reasonable efforts to ensure that complaints are resolved.

3.3 Code Administrator

Each AVD must appoint an independent person or organization as Code Administrator.

The Code Administrator must guide Companies in complying with the Code through appropriate actions.

The Code Administrator must resolve any outstanding consumer issues arising from violations of the Code and must provide an annual report on the administration of the Code.

3.4 Actions

Actions to be determined by Companies, DSAs, and Code Administrators may include cancellation of orders, return of purchased products, refund of payment, or other appropriate actions, including warnings to Distributors, cancellation or termination of

Resellers, or other type of relationship with the Company, warnings to Companies, exclusion of companies from AVD membership, and publication of such actions or sanctions.

3.5 Handling of Complaints

Companies, AVDs, and Code Administrators shall establish procedures for handling complaints and ensure that receipt of any complaint is confirmed within a short period of time and that decisions are made within a reasonable time frame. The process of handling complaints shall be free of charge to the consumer.

3.6 Publication

ADVs shall publish the Code and disseminate it as widely as possible. Free copies shall be made available to the public.