Ms. Shirley Tay, Sunrider International - welcome come to ... · ... Rules and Regulation Implementing Article 53 of the Consumer Act of the ... (R.A. 7394) Current Legislative/Regulations

Ms. Shirley Tay, Sunrider International

• Indonesia – Regulations under Ministry of The Republic of Indonesia, No 13/M-DAG/PER/3/2006 about Regulations and Procedures of theIssuance of Permits for Direct Selling

• Malayisa – Direct Sales Act 1993. This act is currently being reviewed.

• Singapore – Multi-Level Marketing and Pyramid Selling (ExcludedSchemes and Arrangements) Order (or the 'Exclusion Order')

• Thailand – Direct Sales and Direct Marketing Act, B.E.2545 (2002)

• The Philippines – DTI Administrative Order No. 8 – Rules and Regulation Implementing Article 53 of the Consumer Act of the Phillipines (R.A. 7394)

Current Legislative/Regulationsin Some Countries (South Asia)

Can Legislative/Regulation Help to Create a

More Conducive Environment for the Industry?

• Regulations can make the industry become more structured and regulated. However, overly stringent acts could restrict legitimate companies’ growth.

• Undermine the confidence of foreign investors who may reduce their business emphasis in the industry, thus hampering the growth prospects of these companies.

• And, despite the fact that a lot of countries have their respective acts on direct selling, there are still some unscrupulous companies which act against the rules and regulations set by the governments. There are also some direct sellers who mislead the public with unethical and illegitimate practices.

• Therefore Self-Regulation plays a very important role in minimizing unethical practices.

Why Self-regulation?

• Effective Self-regulation will

• Enhance the industry’s reputation in the eyes of governments, regulators and consumers bodies.

• Help to ensure the industry remains competitive and continues to be held in high regard through ethical practices.

• Moving closer to becoming a self-regulatory organization (SRO), more effective especially when the industry becomes mature.

• Help to ensure that direct sellers will not use misleading, deceptive or unfair sales practices.

• Educate the public of the advantages of dealing with DSA members which emphasize on ethical direct selling practices.

• Attract more Foreign Direct Investments (FDI) in related sector.• Increase the effort of the country in promoting overall business.

Available Options to Strengthen the Effectiveness of Self-Regulation & Ethical Practices

• Consumer education = Public relation• Multi-prong education and awareness campaign from the industry and the

government• WFDSA Codes of Conduct and DSA Standards designed to protect

consumers from the activities of unscrupulous or fraudulent operators.• Introduce Code of Conduct @ Training Programs and distributors’ seminars

(This can be incorporated in the New Distributor Orientation Program)• Ethics and Code of Conducts of individual company (in their Business

Guide as well as regular reminders in their newsletters)• Compliance of Code of Conduct of Direct Selling Associations • Complaint Bureau and Code Administrator (Code of Conduct Visit)• Self Regulated Organization (SRO)• More vigilant and effective enforcement from the regulator • Strict / high penalties

Self-Regulation & Ethical Practices –Conclusion

Self-Regulation a must and a continuous practice for the industry to promote ethical direct selling and to further improve the image of the industry and in turn the growth of the country.

Thank you!