Direct selling is defined by the DSA as the sale and supply of goods and services through independent direct sales people, primarily through face-to-face personal contact with the customer in a non-retail environment – usually in the customer's home or place of work. It is not the same as mail order, direct mail, TV home shopping or internet sales - none of which involve contact with a sales person.
The OFT was given increased powers to develop effective self-regulation by the Enterprise Act of 2002, which empowers the watchdog to approve and promote consumer codes of practice that meet the OFT's core criteria.
In general this means that the code must be shown to safeguard and promote consumers' interests beyond the basic requirements of the law.
The new DSA code accordingly gives consumers:
Following the OFT's approval, DSA members, which include many household names and account for over 70% of all direct sales in the home, will now be able to display the OFT 'Approved code' logo on marketing material.
The Code does not, however, contain any provisions relating to the sale of financial products and services. DSA members will not therefore be able to market such products or services under the OFT Approved logo, except for routine credit arrangements related to the sale of goods.
"The OFT approval of the DSA consumer code is good news for consumers and responsible businesses," said Richard Berry, Director of the DSA.
Penny Boys, OFT Executive Director, added: "Consumers buying from direct sellers in the home need to know they are dealing with reputable traders who are committed to safeguarding consumers' interests. Today's launch is a demonstration of our support for code sponsors who have worked hard to achieve OFT code approval and the high level of consumer protection that it demands."
The Code of Pracitce was not available on-line at the time of writing.