This Code concerns a Member Company's dealings with:
1. Its employed and self-employed people
2. Other Member Companies, and
3. The consuming public
DECEPTIVE, UNFAIR, OR UNLAWFUL SALES ACTS OR PRACTICES
No member company of the Association shall engage in deceptive, unlawful, unfair and unconscionable sales acts or practices. Each member company shall be responsible for acquainting their independent salespeople on the provisions of the "Consumer Act of the Philippines" governing consumer product and service warranties.
PRODUCT AND SERVICE WARRANTIES
Member companies shall fully and promptly perform in accordance with the terms of all warranties and guarantees offered to consumers. Member companies shall observe the provisions of the "Consumer act of the Philippines" governing sales acts and practices.
The advertisements, promotional literature, and any offer of products or services for sale by Member Companies shall be accurate and truthful as to price, grade, quality, make, value, performance, quantity, currency of model and availability.
Neither a Member Company, nor their representatives or sales people, shall cause to denigrate or to disseminate information about another member direct selling company, which may be harmful to that company. Comparisons, which are misleading or deceptive, shall not be used.
ACTION ON CONSUMER COMPLAINTS
Each member company shall establish its own procedure for the handling of complaints of its customers and salespeople. The procedure to be adopted shall insure that each complaint receives prompt and thorough attention and proper redress.
1. A Member Company shall neither promote nor endorse any direct or indirect recruitment activity offering employment or self-employment to persons known to be working with another Member Company and shall actively dissuade its salespeople from making such approaches.
2. A member Company shall not promise or grant direct sellers financial benefits or advantages based solely upon recommendations, nominations or recruitment of other direct sellers.
3. No member company shall misrepresent its actual or potential sales or earnings or the earnings of its independent sales people.
ENTRANCE FEE AND INVENTORY
Member Companies shall not require or allow prospective direct sellers to pay, directly or indirectly, any entrance or other fee related solely to the right to participate in the business.
Member Companies and their representatives shall not, at any time, permit or require an independent salesperson to purchase any more products for resale than are needed to enable that independent salesperson to make demonstrations and personal sales on their account and to meet customer orders that have been previously obtained.
Members shall permit all independent sales persons to return goods for resale in merchantable condition for their net purchase price less a reasonable handling charge.
Member companies are responsible for the business conduct of their representatives and/or distributors, and members may not raise the independent contractor status of salespersons as a defense to a violator of this Code. Member companies shall take reasonable steps to ensure that the sales acts, recruitment practices and earning representations made by their representatives and independent sales people conform with this Code and with the pertinent laws.
This Code shall be under the administration of a Code Administrator whose qualifications and term of office shall be determined by the Board of Directors of the DSAP.
The Code Administrator shall monitor the members' compliance with the provisions of this Code and relevant legislation and will render his report annually to the Board of Directors of DSAP.
The Code Administrator, in accordance with the rules of procedure to be promulgated by the Board of Directors, shall hear and determine all complaints and charges against members subscribing hereto, affording such members or persons an opportunity to be heard fully. The Code Administrator shall determine, based on evidence presented by the complainant and member company concerned, whether a violation of the Code has been committed.
The Code Administrator shall have the power to impose any or all of the following sanctions in cases where a member has been found to violate the provisions of this Code:
1. To require the complete restitution to the customer of monies paid for the product.
2. To require the replacement or repair of the product.
3. To require the payment of any costs incurred by the Code Administrator for technical advice or testing.
4. To require the Member to submit a written undertaking to abide by the Code and to exercise due diligence in preventing a recurrence of the breach.
5. To award fair and reasonable damages.
The Board of Directors of the DSAP, on the recommendation of the Code Administrator, may impose other disciplinary action against the erring member, including suspension or termination of the membership in the Association.