Consumer Protection

Consumer Protection: Your Rights, Our Responsibility

At the Global Federation of Direct Selling Associations (GFDSA), consumer protection is a core ethical and responsible business pillar. We believe every consumer has the right to honest, transparent, and fair dealings when engaging with direct selling companies and independent sellers.

GFDSA member companies and associations are committed to upholding the highest consumer respect and accountability standards, guided by the GFDSA World Code of Ethics.

1. Verify the Identity of Sales Representatives

Always ensure that the direct seller you are dealing with:

  • Provides official product brochures or sales materials displaying the company’s name, address, and contact information
  • Offers a valid receipt or order form detailing your purchase

2. Take Your Time Before Signing Anything

Do not sign any agreement, order form, or contract unless:

  • You have verified the identity of the seller
  • You understand the terms and conditions
  • All commitments (pricing, delivery timelines, offers) are clearly stated in writing

3. Be Cautious When Making Payments

Avoid making cash payments unless:

  • You have been issued a valid receipt
  • The seller has presented proper identification and company documentation
  • You are confident in the credibility of the business

4. Be Wary of Verbal Promises

Any verbal commitment — such as “special offers” or “limited-time discounts” — should be:

  • Backed by written confirmation
  • Clearly outlined in official company materials
  • Reflected in the final invoice or receipt

5. Product Guarantees and Return Rights

All GFDSA member companies must provide:

  • Clear return and refund policies
  • Written product guarantees or warranties
  • A “cooling-off” period, where applicable, allows you to reconsider your purchase

6. Look for the GFDSA Affiliation

Choose to engage with companies that are part of the GFDSA and are members of Regional Direct Selling Associations. This guarantees that the business:

  • Adheres to the GFDSA World Code of Ethics
  • Offers transparent consumer protection
  • Operates with accountability and fairness

Building Trust Through Ethics

GFDSA and its member associations welcome and encourage these consumer checks. We know that sustainable success in direct selling comes not from pressure or persuasion but from building long-term trust, transparency, and integrity.

GFDSA World Code of Ethics

The GFDSA World Code of Ethics is the cornerstone of integrity, transparency, and responsibility in the global direct selling industry. It establishes clear and enforceable standards for ethical business conduct among all GFDSA member associations and their affiliated companies.

Adopted across all GFDSA member countries, the Code ensures that direct selling practices remain fair, honest, and respectful to consumers and independent sellers. It covers key areas, including product claims, sales practices, consumer protection, dispute resolution, and responsible recruitment.

The Code is not static — it is continuously reviewed and enhanced to reflect evolving global market dynamics, legal frameworks, and ethical expectations. All member associations must implement the Code nationally and ensure their member companies fully comply.

By upholding the GFDSA World Code of Ethics, we reinforce trust in the industry, empower ethical entrepreneurship, and protect consumers — creating a more responsible and sustainable future for direct selling worldwide.

Is There a Real Product?

Protect Yourself. Choose Legitimate Direct Selling.

If you are considering joining a direct selling opportunity, one of the most critical questions you must ask is:

“Is there a genuine, marketable product or service?”

At the Global Federation of Direct Selling Associations (GFDSA), we are committed to helping individuals identify legitimate, ethical opportunities and avoid illegal schemes that exploit people under the guise of business.

Key Things to Consider Before You Join:

1. Genuine Products, Real Value

A legitimate direct selling business is built on tangible, high-quality, competitively priced products or services. These products should:

  • Have an apparent market demand
  • Be sellable to actual customers — not just to recruits
  • Offer value beyond the compensation plan

If the product feels vague, speculative, overpriced, or exists only to justify enrolment fees, this is a red flag.

2. Beware of Pyramid Schemes Disguised as Direct Selling

Illegal pyramid schemes often use token or low-value products to mask recruitment-driven profit models. Common warning signs include:

  • Heavy emphasis on recruitment over product sales
  • Promises of fast income just for bringing others in
  • Requirements to purchase large inventories with no return rights
  • Unclear or exaggerated product claims with no substantiated value

Remember: If the focus is more on enrolling people than selling products, it’s not direct selling — it’s a pyramid scheme.

The GFDSA Standard: Product-Driven, People-First

All GFDSA-recognized companies and associations must:

  • Provide clearly defined, verifiable product offerings
  • Comply with the GFDSA World Code of Ethics
  • Ensure that compensation is based on product sales, not recruitment
  • Offer transparent information, refund policies, and consumer guarantees

Your Checklist Before Joining:

  • Is the product real, and does it have value?
  • Are you expected to sell to customers, not just recruit?
  • Is income earned through actual product sales?
  • Are the product details and compensation plan clearly explained in writing?
  • Is the company affiliated with a GFDSA-accredited Direct Selling Association?

At GFDSA, we protect the direct selling industry's reputation by supporting only ethical, product-based, and transparent business models.

Your journey in direct selling should be built on trust, empowerment, and real value — never deception.

In direct selling, income is earned through product sales and, in some cases, through the sales generated by a team you build over time. Success requires consistent effort, skill development, and customer service.

Be cautious of :

  • Promises of fast or guaranteed income
  • Claims of “passive” or “automated” wealth with little to no effort
  • Messaging focused more on recruiting than selling

GFDSA encourages responsible income disclosure and does not endorse exaggerated or misleading earnings claims.

What Does It Cost to Join?

Legitimate direct selling companies typically require a modest start-up fee, often covering a starter kit or training materials. These costs should be reasonable, transparent, and optional.

Be wary of:

  • High upfront payments to join
  • Pressure to buy expensive packages to “qualify”
  • Financial incentives tied to recruitment or excessive inventory purchases

Pyramid schemes often profit from enrollment fees, not product value.

Do You Understand the Compensation or Marketing Plan?

Direct selling companies often use multi-level compensation structures to reward sales performance and leadership.

Before joining:

  • Ensure you understand precisely how you will earn income
  • Confirm that commissions are based on product sales, not recruitment
  • Be cautious if the plan is overly complex or unclear — lack of clarity may hide unethical practices

GFDSA supports simple, transparent, and product-based reward systems.

Are Products Genuinely Used by Consumers?

In a legitimate direct selling model, products are consumed and purchased by real end users, including customers and distributors.

Ask:

  • Are the products sound, well-priced, and in demand?
  • Are sales happening to non-distributor customers?
  • Is there pressure to make large inventory purchases without actual demand?

Be wary of schemes where products exist only to justify recruitment.

Is There an Emphasis on Recruiting?

While building a team can be part of a direct selling business, recruiting should never be the primary focus.

A legitimate company:

  • Prioritizes product quality, customer satisfaction, and retail sales
  • Supports distributors with training and product education
  • Does not require ongoing recruitment to earn commissions

Recruitment-only income models are a hallmark of pyramid schemes.

What Happens with Unsold Inventory?

Reputable companies offer inventory buy-back policies for unopened, marketable products, protecting the financial well-being of their distributors.

Check for:

  • Clear return and refund policies
  • No penalties for returning unsold inventory
  • No requirement to stockpile inventory to remain eligible for commissions

GFDSA requires member companies to uphold fair inventory return standards as part of their ethical obligations.

GFDSA: Here to Protect and Empower

At GFDSA, we actively monitor and guide our member companies and associations to ensure they:

  • Operate ethically and transparently
  • Promote legitimate, product-based business models
  • Protect both consumers and independent distributors through the GFDSA World Code of Ethics

When in doubt, contact your local GFDSA-recognized Direct Selling Association to verify the legitimacy of a company or opportunity.

How to File a Complaint Under the GFDSA World Code of Ethics

The Global Federation of Direct Selling Associations (GFDSA) is committed to protecting the rights of consumers, distributors, and companies by strictly enforcing the GFDSA World Code of Ethics. All companies affiliated with GFDSA-recognized Direct Selling Associations (DSAs) must fully comply with the ethical standards established by their local DSA and the global GFDSA framework.

You can file a formal complaint if you believe a direct-selling company or its representative has violated these standards. GFDSA provides a transparent and structured resolution process to ensure fairness, accountability, and professionalism.

Step 1: Try to Resolve the Issue Directly

Before escalating your complaint, attempt to resolve the matter directly with the individual seller or company involved. Prepare a written complaint including the following:

  • The date and detailed description of the incident
  • Names of all parties involved
  • The section(s) of the Code of Ethics you believe were violated
  • Any efforts you've made to resolve the issue
  • The value of the product/service, if applicable (include invoices, receipts, or order forms)
  • The response or lack thereof from the company or individual
  • The current status of the issue
  • The remedy or resolution you are seeking

Allow the company or representative up to 30 days to respond in good faith.

Step 2: Contact the GFDSA's Member Regional Direct Selling Association Code Administrator

If the issue remains unresolved, submit your complaint to the Code Administrator of your Regional Direct Selling Association (RDSA). Include the same documentation outlined in Step 1. Every GFDSA-recognized RDSA has a designated Code Administrator responsible for ensuring compliance with ethical standards.

The Regional Direct Selling Association will review and facilitate resolution between you and the company.

Step 3: Escalate to GFDSA (if necessary)

Suppose your national DSA is unable to resolve the matter to your satisfaction. In that case, you may submit your complete complaint history, along with responses from both the company and the national DSA, to GFDSA's Ethics Oversight Unit via email at:

ethics@gfdsa.org (example email, can be customized)

GFDSA will review your case and consult directly with the Regional Direct Selling Association and the company's headquarters to ensure a fair resolution.

International Complaints & Extra-Territorial Protection

Even if:

  • Your country does not have a Regional Direct Selling Association (RDSA)or
  • The company is not a member of your Regional Direct Selling Association (RDSA)

You can still file a complaint if the company is a member of the Regional DSA in its home country, provided that GFDSA recognizes the Regional Direct Selling Association (RDSA).

What to do:

  • Identify the company's headquarters location.
  • Confirm its membership in the Regional Direct Selling Company in that country.
  • Submit your complaint and supporting documents to that country's Regional Direct Selling Association Code Administrator and copy GFDSA for reference.

You should report the issue to your local consumer protection agency or government body if the company is not a GFDSA-affiliated Regional Direct Selling Association (RDSA) member.

Ethics and Accountability in Action

GFDSA and its member Regional Direct Selling Association (RDSA) uphold the direct selling industry's commitment to consumer protection, ethical practices, and responsible growth. Our complaint resolution process is:

  • Free, fair, and confidential
  • Focused on restorative resolution and transparency
  • Anchored in the values of justice, education, and industry integrity

If you need guidance on whether a company is GFDSA-affiliated or help drafting your complaint, please contact your Regional Direct Selling Association (RDSA) or email GFDSA directly.

GFDSA is here to protect your voice — because trust is the foundation of our industry