The purpose of this Code of Conduct is to establish a framework of ethical business practices, legal compliance, and professional integrity for all members of the Ethical Direct Seller Association (EDSA). It aims to protect the interests of consumers, direct sellers, and companies while promoting a transparent and trustworthy direct selling ecosystem.
This Code shall be binding upon all Member Companies, Direct Sellers (Distributors), and all office bearers, representatives, and affiliates associated with EDSA. Compliance with this Code is mandatory for obtaining and retaining membership.
All members shall conduct their business with the highest standards of honesty, integrity, and fairness. No member shall make false, misleading, or exaggerated representations regarding products, services, or income opportunities.
All members shall strictly comply with applicable laws, including the provisions of the Consumer Protection Act, 2019 and all regulations governing direct selling. Any act in violation of law shall be treated as a serious breach.
Members shall not promote, operate, or participate in any pyramid scheme or money circulation arrangement. All earnings must be derived solely from the sale of genuine products or services.
Members must provide clear, accurate, and complete information regarding compensation plans, income potential, and business models. No assurance of guaranteed income shall be made.
Members shall respect consumer rights, including the right to accurate information, fair pricing, and appropriate refund or return policies. No unfair trade practices or coercion shall be permitted.
Member companies shall ensure fair and equitable treatment of all direct sellers, including timely payment of commissions, non-discriminatory practices, and protection from unjust termination.
Members shall safeguard the confidentiality of personal and business information of consumers and direct sellers. No data shall be misused or shared without proper legal basis.
All promotional and advertising activities shall be truthful, verifiable, and compliant with applicable laws. False testimonials or deceptive marketing practices are strictly forbidden.
Members shall maintain professionalism, dignity, and mutual respect. Defamation, unethical criticism, or conduct that damages the industry's reputation is strictly prohibited.
Member companies shall maintain proper compliance systems, ensure product quality and safety, provide adequate training, and establish effective grievance redressal mechanisms.
Direct sellers shall carry proper identification, provide accurate information about products and opportunities, respect consumer preferences, and adhere to ethical selling.
EDSA shall maintain a transparent and efficient grievance redressal system. Complaints shall be acknowledged promptly, investigated fairly, and resolved within a reasonable timeframe.
EDSA reserves the right to monitor member activities, conduct audits, and seek necessary information to ensure compliance with this Code. Members shall fully cooperate.
Any violation of this Code or applicable laws may result in strict action, including warning, suspension, or termination of membership, depending on the severity of the breach.
All members shall sign a formal declaration confirming their acceptance of this Code of Conduct and their commitment to abide by its provisions at all times.
EDSA reserves the right to amend or update this Code of Conduct as required by changes in law, regulatory requirements, or industry practices.