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CEO DATELINE – Direct selling group sets up self-regulatory body

Jan. 10, 2019
By Martin Berman-Gorvine

The Direct Selling Association has set up a third-party self-regulatory program—administered by the Council of Better Business Bureaus—to monitor the marketplace and investigate complaints. The Direct Selling Self-Regulatory Council was launched Jan. 4 with CBBB Vice President Peter Marinello as director.

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According to DSA, the new entity “is designed to ensure high standards of integrity and business ethics” by actively monitoring “income representations and product claims” in the direct selling marketplace, including those posted on companies’ and independent sales forces’ websites and social media. The self-regulatory council will report potential violations to the appropriate government agencies, including those submitted by competitors. It will also investigate and try to resolve consumer complaints. 

Lee Peeler, CBBB’s executive vice president for national advertising programs, said the self-regulatory body will comply with the four requirements to which the bureau holds the self-regulatory programs it administers: “clear standards, independent administration, transparent decision making, and accountability for non-compliance."