Revolutionizing Direct Sales: 30-Day Unconditional Right of Withdrawal for Consumers

Introduction of the New Draft Regulation

The Ministry of Commerce has unveiled a comprehensive draft regulation aimed at governing systems that facilitate the sale of products or services through personal communication channels. This regulation specifically targets businesses operating without physical storefronts or traditional retail outlets, seeking to modernize and regulate the sector effectively. The proposed "Draft Regulation on Direct Sales" introduces a series of new obligations and standards for both companies and individual direct sellers.

Enhanced Consumer Rights and Extended Withdrawal Period

A key feature of this regulation is the unconditional right of consumers to withdraw from contracts within 30 days. This extension from the previous 14-day period emphasizes the commitment to consumer protection. Consumers will be able to cancel their purchases without providing any justification and will be entitled to a full, cost-free refund. The withdrawal period begins upon receipt of the product but can also be exercised prior to delivery, providing greater flexibility and security for consumers.

Prohibition of False Promises and Misleading Practices

The draft regulation aims to eliminate deceptive marketing tactics frequently seen in the sector. It explicitly prohibits unrealistic earnings claims and pressure tactics or misleading guidance directed at individuals involved in the system. Additionally, direct sales companies will be restricted from allocating more than 40% of their annual net sales to bonuses, commissions, and incentive programs, promoting a fairer and more transparent financial model.

Mandatory Licensing and Certification for Companies

To operate legally within this framework, direct sales companies must now obtain a "sales authorization certificate". This certification, valid for a period of three years, will require companies to provide comprehensive information focusing on public health, safety, and consumer protections. The licensing process aims to ensure that only compliant and reliable entities participate in the sector.

Rights and Responsibilities of Direct Sellers

Recognizing the importance of fair treatment for those involved in direct sales, the regulation stipulates that individual sellers must be at least 18 years old. Sellers will have the legal right to exit the system without facing any penalties or obligations. Moreover, those who choose to leave within 30 days will be required to return any unused products they possess, maintaining fairness and accountability within the ecosystem.

Exceptions and Clarifications Regarding the Right of Withdrawal

The regulation clarifies that the right of withdrawal does not apply to certain categories of products, including custom-made items specifically tailored at the consumer’s request, products that cannot be returned due to hygiene or health concerns, and products with opened or tampered packaging. Additionally, periodicals such as newspapers, magazines, and particular subscription-based services are excluded from this right, aligning consumer rights with practical considerations.

Mandatory Consumer Information and Transparency

Companies will be required to provide consumers with clear and comprehensive information about their rights and procedures via multiple channels, including telephone, email, SMS, and online platforms. This information must explicitly detail how to exercise the right of withdrawal, seller identification details, product or service specifics, and application procedures. Such transparency aims to empower consumers and foster trust within the sector.

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