Direct Selling Association

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The Direct Selling Association ( DSA ) is the name of several similar trade associations in the United States, United Kingdom, Australia, Malaysia, Singapore and New Zealand representing direct sales of companies, which uses multi-level marketing compensation plans. On behalf of its member companies, DSA is involved in public relations and lobbying against multi-level marketing industry regulation, and funding political candidates through political action committees.

Video Direct Selling Association

History in US

The American DSA, headquartered in Washington, D.C., is a national trade association of a group of companies that produce and distribute goods and services sold directly to consumers typically through multi-level marketing.

Founded in Binghamton, New York in 1910 as a trading group for door-to-door salesmen, the association was originally named the Credit Agent Association. It was renamed the National Agency of Companies (NAAC) in 1914, and was briefly renamed the National Association of Agencies and Mail Order Companies in 1917, before returning to NAAC in 1920. It became the Direct Sales Association in 1968. On In 1970, less than 5% of DSA members were multi-level marketing companies. In 2009-2011, DSA membership has grown to cover nearly 200 companies, more than 90% of whom are multi-level marketing companies.

DSA belongs to the National Retail Federation and its member companies promise to comply with the DSA code of ethics.

Maps Direct Selling Association

In other countries

In 2011, DSA has twin organizations in the UK (with more than 40 member companies), Australia (nearly 70 member companies), and Israel (7 member companies)

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Politics lobby

DSA serves as a PR and lobby group acting on behalf of its member companies. DSA plays a role in petitioning the Federal Trade Commission (FTC) to exclude multi-level marketing firms from consumer protection regulations outlined in the FTC's 2006 Business Opportunity Opportunities, encouraging people to write 17,000 form letters complaining about the rules from 2006 to 2008. the law was passed in 2012, with most multi-level marketing companies considered to be excluded.

The DSA is supported and allegedly designing multiple languages ​​from the "Anti-Pyramid Promotion Scheme Act" introduced by US Representative Marsha Blackburn, and amendments to the US Treasury's omnibus and the Bill of the General Government Fund for fiscal year 2018 by US Representative John Moolenaar who will limit the ability of FTCs and other agencies to classify companies as pyramid schemes and to investigate whether MLM is a pyramid scheme. The amendment will revoke the Ministry of Finance, the Department of Justice, Small Business Administration, the Securities and Exchange Commission, the FTC, or any other institution from using any money to take law enforcement action against pyramid operations for the fiscal year. The law will blur the line between legitimate MLM activity and pyramid schemes established under the original 1979 FTC case with sales deemed made for people within the company as a sale to "end users," thus erasing key differences made in the decision between sales to the actual consumer of a product and a sale made to members of the MLM network used to recruit additional members or to qualify for a commission. The amendment was opposed by a coalition of consumer interest groups including Consumer Action, the American Consumer Federation, Consumer Union (Consumer Reports magazine publisher), Consumer Watchdog, the National Consumers League, and United States Public Interest Research Group (US PIRG) , and Truth in Advertising (TINA.org) in its original incarnation.

DSA also funded political candidates through its political action committee.

src: wfdsa.org

Pyramid scheme

DSA has said that pyramid schemes disguised as direct sales companies have caused confusion in the industry. In 2013, Tupperware - which does not use multi-level marketing - let the DSA cite industry changes and concerns over pyramid schemes. In 2014, Avon (founding member) leaves the DSA on the grounds that its rules are inadequate in protecting consumers from fraud. News reports have linked Avon's withdrawal to allegations of a pyramid scheme against members of the Herbalife DSA, which the FTC is investigating at the time, and has now been ordered to agree to pay two hundred million dollars in settlement. DSA makes a statement that they will see Avon's concerns.

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References

src: www.directsellingnews.com

External links

• The US Direct Selling Association
  • DSA Consumer Web site

Source of the article : Wikipedia