As direct selling takes off in emerging markets in Asia, Africa and Latin America, ICC national committees have begun referencing the ICC Direct Selling Code, to give firms much-needed assurance to operate in these fast-growing countries.
Major corporations, including direct sellers, are engaged in a search to find ways to cater to populations in the emerging world, from Brazil to Benin, where 4 billion people are estimated to have as much as $5 trillion in purchasing power.
The revised ICC International Code of Direct Selling has been streamlined, and together with the Code of the World Federation of Direct Sellers Associations (WFDSA) represents the basis for direct selling governance worldwide.
Direct selling, as defined by the Code, means selling products directly to consumers, usually in their homes or workplaces and other places away from retail stores, where the direct seller may explain or demonstrate products. Some well-known direct selling c
ompanies include Dell, Amway, Unilever, Tupperware and Avon.
Vitamin direct seller GNLD has come to rely on the ICC Code for its rapidly expanding activities on the African continent. “We started our operations two years ago and we are growing fast,” said Emelencia Tchutta, Marketing Supervisor of the GNLD Yaounde, Cameroon office.
Headquartered in Fremont, California, GNLD now has 24 locations in a dozen African countries. “ICC Cameroon is giving us the reassurance that we can operate in safety,” Mr Tchutta added.
“GNLD has relied on the Code and the local ICC office to frame its growth in regulatory terms,” said Cyrus Methu, Sales Director for GNLD East Africa, based in Dar es Salaam, Tanzania.
The ICC Direct Selling Code is an instrument for self-discipline, but may also be used by the courts as a reference document. The Code is also able to fill in the gap in countries which have not created direct selling laws.
The Code spells out responsible conduct towards consumers, such as the credo not to exploit a consumer’s age, that product demonstrations should be complete with regard to price, and also covers recruitment practices in the direct selling industry.
“Responsible direct selling is an expression of the industry’s recognition of its social obligations. The fundamental value of self-regulation lies in its ability to create, enhance and preserve consumer trust and confidence in the business communities behind it, and thereby in the marketplace itself,” said Anders Stenlund, Vice-Chair of ICC’s Marketing and Advertising Commission and one of the lead drafters of the code.
“We try to establish direct selling associations in all countries where we have members, but we can’t be everywhere,” said Neil Offen, Secretary General of the WFDSA. “For countries in Asia, Africa and Latin America where direct selling is taking root, ICC has provided us, our customers and governments with a useful framework within which our businesses can operate successfully.”
At the 13th WFDSA Congress in Singapore, which will take place from 8 to 10 October, Jens Karsten, Director of European Regulatory Affairs for the Federation of European Direct Selling Associations, will present the ICC Direct Selling Code during a workshop on market opportunities in Africa.
To see the ICC Direct Selling Code in English
click here
To see the ICC Direct Selling Code in French
click here