Direct Selling is not...
Direct selling is not selling online, by phone or by mail. The latter are forms of distance selling. Distance contracts shall be exclusively through the use of one or more means of distance communication (without the simultaneous physical presence of the supplier and the consumer).
It is also important to understand the difference between direct selling and pyramid schemes.
A pyramid scheme is any plan or operation by which a participant pays for the chance to receive compensation from the presentation of others, rather than from the sale of products by the participant or others who joined the plan or operation. Are mechanisms by which promoters of so-called schemes of "investment" or "trading" are enriched in geometric progression through payments made by the recruits in such schemes. Related fraudulent schemes have been described in various international jurisdictions titled as "chain letters", "snowball schemes", "chain sales", "gambling" or "investment lotteries".
Pyramid schemes are a concern for WFDSA (World Federation of Direct Selling Associations) because these and other similar fraudulent schemes are intentionally exposed as network marketing business. The WFDSA (World Federation of Direct Selling Associations) condemns these practices and strongly supports a general statutory prohibition. CAVEDI, does not accept the association of companies whose marketing scheme is of this type (pyramidal).