Direct Selling Association Updates Code of Conduct

The Bundesverband Direktvertrieb Deutschland (BDD), Germany's association for direct selling companies, has updated its code of conduct. The revised rules, adopted in October 2018, replace previous fair trading regulations and aim to enhance consumer and sales partner protection while promoting fair competition within the industry.

The code details the obligations of BDD member companies and their sales partners in initiating, concluding, and handling contracts. It includes specific provisions for consumer protection, such as an extended right of withdrawal that exceeds statutory requirements. Furthermore, it mandates a shifted burden of proof in cases of defective goods, favoring the consumer's rights.

In their dealings with sales partners, the code emphasizes honorable conduct. It covers aspects such as the recruitment of new sales partners, contractual relationships, termination, and internal education and training. In relationships between member companies, the BDD mandates adherence to strict principles of honesty and fair competition, prohibiting practices like denigration of competitors.

The BDD's code of conduct is designed to surpass existing legal minimums for consumer protection and business ethics. The organization believes these standards will contribute to improving the public image of the direct selling industry and foster greater trust among both consumers and sales partners. Compliance with the code is overseen by a control commission within the association.