Code of Conduct towards Consumers
The CAVEDI Code of Conduct towards Consumers (hereinafter referred to as the "Code") is published by the Chamber for its member companies. It includes the relations between Direct Selling Companies and Direct Sellers on one hand and towards consumers on the other. The Code is aimed at achieving the satisfaction and protection of consumers, the promotion of fair competition in the framework of free enterprise, and the enhancement of the public image of Direct Selling.
1.2 Glossary of Terms
For the purpose of this Code, the terms used have the following meaning:
Direct Selling: the marketing of products and services directly to consumers, generally in their homes or in the homes of others, in their workplaces and in other places away from permanent retail stores, usually with explanations and demonstrations of the products or services by a direct seller.
Companies: Direct Selling Companies are business entities that utilize the direct selling system to market their products and carry a logotype that identifies them as members of CAVEDI.
Direct Sellers: They are persons that are members of a selling system of a Direct Selling Company. They can be independent commercial agents, independent direct sellers, independent dealers, independent distributors or representatives. franchisees or other similar sales representatives of a company.
Products: Tangible and intangible consumer goods and services.
Selling:includes contacting potential customers, presenting and demonstrating products, taking orders, delivering goods and collecting payments.
Order Form: Includes printed or written orders, receipts and contracts.
Recruiting: Any activity conducted for the purpose of inducing a person to become a Direct Seller.
Code Administrator: Independent person or body appointed by CAVEDI to monitor member companies' observance of the CAVEDI Code and to resolve complaints under the Code.
Conduct towards consumers
2.1 Prohibited Practices
Direct Sellers should not use misleading, deceptive or unfair practices.
At the initiation of a sales presentation, direct sellers should, even if not requested to, truthfully and clearly identify themselves; the identity of their company; the nature of their products and the purpose of their call on the prospective consumer. In party plan selling the direct sellers shall clearly define the purpose of the meeting to the host and the participants.
2.3 Explanation and Demonstration
The explanation and demonstration of a product offered must be accurate and complete, especially with reference to price and, if applicable, credit terms, terms of payment, cooling-off period and return policy, terms of the guarantee, after-sales service and delivery dates.
2.4 Answers to questions
Direct sellers shall give accurate and understandable answers to all questions from consumers concerning the product and the offer.
2.5 Order Form
A written form must be delivered to the direct seller. It will identify the company and the direct seller and will contain the full name, permanent address and telephone number of the company and the direct seller, and the sale conditions. All terms must be clear and legible.
2.6 Verbal promises
Direct sellers shall only make verbal promises about products that are authorized by their companies.
2.7 Cooling-off and return of goods
Whether or not it is a legal requirement, companies and direct sellers must make sure that any form contains a cooling off clause that permits the consumer to withdraw his/her order within a specified period of time and to obtain a refund if there has been a payment. Companies and direct sellers offering an unconditional return right must do it in writing.
2.8 Guarantee and after-sale service
The conditions of the guarantee, details and limitations of the after-sale service, name and address of the guarantor, and the duration of the guarantee must be clearly explained in a form or leaflet or provided with the product.
Promotional literature, advertisements or mailings shall not contain Product descriptions, claims or illustrations that are confusing or uncertain. Promotional literature shall contain the name and address and telephone number of the company or of the direct seller.
Companies and Direct Sellers shall not refer to any testimonial or endorsement which is not true, obsolete or otherwise no longer applicable, not related to their offer or used in any way likely to mislead the consumer.
2.11 Comparisons and defamation
Companies and direct sellers shall abstain themselves from using comparisons that might mislead the consumer and that are incompatible with the principles of defence of free competition. Points of comparison must not be selected disloyally and must be based on demonstrable facts. Companies and direct sellers must not discredit any company or product whether directly or implicitly. Companies and direct sellers must not use the brand or symbol of another company in a disloyal way.
2.12 Respect of Privacy
Personal contacts or phone calls shall be made during reasonable hours to avoid intrusiveness. A direct seller shall discontinue a demonstration or sales presentation immediately upon the request of the Consumer.
Direct Sellers shall not abuse the trust of individual consumers, shall respect the lack of commercial experience of consumers, or exploit their advanced age, illness, lack of understanding or unfamiliarity with a language.
2.14 Referral Selling
Companies and direct sellers shall not induce a person to purchase goods or services based upon the promise that a consumer can reduce or recover the purchase price by referring prospective customers for similar purchases, if such reductions or recovery are contingent upon some uncertain, future event.
Companies and direct sellers shall make sure that the products ordered in the direct sellers´ purchase order are delivered correctly and within the established period of time.