1.1 Scope

The RODSA Code of Conduct for Direct Selling (hereinafter referred to as the "Code") is published by the Direct Selling Association of Romania (RODSA) for national entrepreneurs carrying out the activity within the scope of direct selling (“Entrepreneurs”). The Code concerns the relations between Entrepreneurs which are RODSA members and Direct Sellers on the one hand and Consumers on the other hand. It also concerns the relations between Entrepreneurs and Direct Sellers, between Direct Sellers and between Entrepreneurs . The Code is aimed at achieving the satisfaction and protection of consumers, the protection of Direct Sellers, the promotion of fair competition in the framework of free enterprise, the enhancement of the public image of Entrepreneurs, and the ethical representation of the Direct Selling industry's earning opportunity.

1.2 Glossary of Terms

For the purpose of the Code, the terms used have the following meaning:

Direct Selling: A modern way of marketing of consumer products directly to consumers generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations, usually through explanation or demonstration of the products by a Direct Seller.

Entrepreneur: It is a business entity which utilises a Direct Selling organisation for the marketing of products associated with its trademark or service mark or other identifying symbol and which is a member of RODSA.

Direct Seller: A Direct Seller is a person who is a member of a distribution system of a Direct Selling company. A Direct Seller may be an independent commercial agent, independent contractor, independent dealer or distributor, employed or self-employed representative, franchisee or the like.

Product: Product includes goods and services, both tangible and intangible.

Selling: Selling includes contacting potential customers, presenting and demonstrating products, taking of orders and delivery of goods and the collection of payment.

Party Selling: Selling through explanation and demonstration of products to a group of prospective customers by a Direct Seller usually in the home of a hostess who invites other persons for this purpose.

Order Form: Includes printed or written orders, receipts and contracts.

Recruiting: Any activity conducted for the purpose of inducing a person to become a Direct Seller.

Code Administrator: Independent person or body appointed by RODSA to monitor Entrepreneurs’ observance of the Code and to resolve complaints under the Code.

1.3 Entrepreneurs

Every RODSA Entrepreneur pledges to abide by the Code as a condition of admission and continuing membership in RODSA. Every RODSA Entrepreneur shall be required to promote to the public their RODSA affiliation and its Code.

1.4 Direct Sellers

Entrepreneurs shall communicate the contents of the Code to all Direct Sellers and require them, as a condition of membership in the Entrepreneurs’ distribution systems, to comply with the Code.

1.5 Self-Regulation

The Code is a measure of self-regulation by the Entrepreneurs . It is not a law, and its obligations may require a level of ethical behaviour which exceeds existing legal requirements. Non-observance does not create any civil law responsibility. With termination of its membership in RODSA, an Entrepreneur is no longer bound by the Code, the provisions of which remain applicable to events or transactions occurring during the time an Entrepreneur was a member of RODSA.

1.6 Law

Entrepreneurs and Direct Sellers are presumed to comply with the requirements of law and therefore the Code does not restate all legal obligations.

1.7 Standards

The Code contains standards of ethical behaviour for Entrepreneurs and Direct Sellers. It is recommended to use the Code as evidence of industry standards.

1.8 Extraterritorial effect

A condition to admission and continuing membership in RODSA is to comply with the WFDSA World Codes of Conduct for Direct Selling with regard to direct selling activities outside of its home country, unless those activities are under the jurisdiction of codes of conduct of another country’s DSA to which the RODSA member also belongs.

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2.1 Prohibited Practices

Direct Seller shall not use misleading, deceptive or unfair sales practices.

2.2 Identification

From the beginning of the sales presentation, Direct Sellers shall, without request, truthfully identify themselves to the prospective customer, and shall also identify their Entrepreneur , their products and the purpose of their solicitation. In party selling, Direct Sellers shall make clear the purpose of the occasion to the hostess and the participants.

2.3 Explanation and Demonstration

Explanation and demonstration of the product offered shall be accurate and complete, in particular with regard to price and, if applicable, credit price, terms of payment, cooling-off period and/or return rights, terms of guarantee and after-sales service, and delivery.

2.4 Answers to Questions

Direct Seller shall give accurate and understandable answers to all questions from consumers concerning the product and the offer.

2.5 Order Form

A written order form shall be delivered to the customer at the time of sale, which shall identify the Entrepreneur and the Direct Seller and contain the full name, permanent address and telephone number of the Entrepreneur or the Direct Seller, and all material terms of the sale. All terms shall be clearly legible.

2.6 Verbal Promises

Direct Sellers shall only make verbal promises concerning the product which are authorised by the Entrepreneur .

2.7 Cooling-off and Return of Goods

Entrepreneur and Direct Sellers shall assure that any Order Form contains, a cooling-off clause permitting the customer to withdraw from the order within a 10 days period of time from the moment of conclusion of the contract .

2.8 Guarantee and After-Sales Service

Terms of a guarantee or warranty, details and limitation of after-sales service, the name and address of the guarantor, the duration of the guarantee and the remedial action open to the Consumer shall be clearly set out in the order form or other accompanying literature or provided with the product.

2.9 Literature

Promotional literature, advertisements or mailings shall not contain any product description, claims or illustrations which are deceptive or misleading, and shall contain the name and address or telephone number of the Entrepreneur or the Direct Seller.

2.10 Testimonials

Entrepreneurs and Direct Sellers shall not refer to any testimonial or endorsement which is not authorised, not true, obsolete or otherwise no longer applicable, not related to their offer or used in any way likely to mislead the Consumer.

2.11 Comparison and Denigration

Entrepreneurs and Direct Sellers shall refrain from using comparisons which are likely to mislead and which are incompatible with principles of fair competition. Points of comparison shall not be unfairly selected and shall be based on facts which can be substantiated. Entrepreneurs and Direct Sellers shall not unfairly denigrate any firm or product directly or by implication. Entrepreneurs and Direct Sellers shall not take unfair advantage of the goodwill attached to the trade name and symbol of another firm or product.

2.12 Respect of Privacy

Personal or telephone contact shall be made in a reasonable manner and during reasonable hours to avoid intrusiveness. A Direct Seller shall discontinue a demonstration or sales presentation upon the request of the Consumer.

2.13 Fairness

Direct Sellers shall not abuse the trust of individual Consumers, shall respect the lack of commercial experience of Consumers and shall not exploit a consumer's age, illness, lack of understanding or lack of language knowledge.

2.14 Referral Selling

Entrepreneurs and Direct Sellers shall not induce a Consumer to purchase goods or services based upon the representation that a Consumer can reduce or recover the purchase price by referring prospective customers to the sellers for similar purchases, if such reductions or recovery are contingent upon some unsure future event.

2.15 Delivery

Entrepreneurs and Direct Sellers shall fulfil the customer's order in a timely manner.

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3.1 Direct Seller's Compliance

Entrepreneurs shall require their Direct Sellers, as a condition of membership in the Entrepreneurs' distribution system, to comply with the Code or with rules of conduct which meet its standards.

3.2 Recruiting

Entrepreneurs and Direct Sellers shall not use misleading, deceptive or unfair recruiting practices.

3.3 Business Information

Information provided by the Entrepreneur to its Direct Sellers and to prospective Direct Sellers concerning the opportunity and related rights and obligations shall be accurate and complete. Entrepreneurs shall not make any factual representation to a prospective recruit which cannot be verified or make any promise which cannot be fulfilled. Entrepreneurs shall not present the advantages of the selling opportunity to any prospective recruit in a false or deceptive manner.

3.4 Earnings Claims

Entrepreneurs and Direct Sellers shall not misrepresent the actual or potential sales or earnings of their Direct Sellers. Any earnings or sales representations made shall be based upon documented facts.

3.5 Relationship

Entrepreneurs shall give their Direct Sellers either a written agreement to be signed by both the Entrepreneurs and the Direct Seller or written statement, containing all essential details of the relationship between the Direct Seller and the Entrepreneurs . Entrepreneurs shall inform their Direct Sellers of their legal obligations, including any applicable licenses, registrations as well as taxes and social insurance premiums .

3.6 Fees

Entrepreneurs and Direct Sellers shall not ask other Direct Sellers to assume unreasonably high entrance fees, training fees, franchise fees, fees for promotional materials or other fees related solely to the right to participate in the business.

3.7 Termination

On the termination of a Direct Seller's relationship with an Entrepreneur, Entrepreneurs shall buy back any unsold but saleable product inventory, including promotional material, sales aids and kits, and credit in the Direct Seller's original net cost thereof less a handling charge to the Direct Seller up to 10% of the net purchase price and less any benefit received by the Direct Seller based on the original purchase of the returned goods.

3.8 Inventory

Entrepreneurs shall not require or encourage Direct Sellers to purchase product inventory in unreasonably large amounts. The following should be taken into account when determining the appropriate amount of product inventory: the relationship of inventory to realistic sales possibilities, the nature of competitiveness of the products and the market environment, and the Entrepreneur’s product return and refund policies.

3.9 Remuneration and Accounts

Entrepreneurs shall provide Direct Sellers with periodic accounts concerning, as applicable, sales, purchases, details of earnings, commissions, bonuses, discounts, deliveries, cancellations and other relevant data, in accordance with the Entrepreneur’s arrangement with the Direct Sellers. All monies due shall be paid and any withholdings made in a commercially reasonable manner.

3.10 Education and Training

Entrepreneurs shall provide adequate education and training to enable Direct Sellers to operate ethically. This may be accomplished by training sessions or through written manuals or guides, or audio-visual materials.

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4.1 Principle

Member Entrepreneurs of RODSA are requested to conduct themselves fairly towards other members.

4.2 Enticement

Entrepreneurs and Direct Sellers should not entice away or solicit any Direst Seller by systematic enticement towards other companies' Direst Sellers.

4.3 Denigration

Entrepreneurs shall not unfairly denigrate nor allow their Direct Sellers to unfairly denigrate another Entrepreneur’s 's product, its sales and marketing plan or any other feature of that Entrepreneur.

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5.1 Entrepreneurs' Responsibility

The primary responsibility for the observance of the Code shall rest with each individual Entrepreneur . In case of any breach of the Code, companies shall make every reasonable effort to satisfy the complainant.

5.2 RODSA's Responsibility

RODSA shall provide a person responsible for complaint handling. RODSA shall make every reasonable effort to ensure that complaints are settled.

5.3 Code Administrator

The Board of RODSA will entrust the function of the Code Administrator to a nominated person.

The Code Administrator shall monitor companies' observance of the Code by appropriate actions and shall settle any unresolved complaint of consumers and Direct Sellers based on the provisions of the Code.

5.4 Actions

Actions to be decided on by Entrepreneurs , RODSA or the Code Administrator may include cancellation of orders, return of goods purchased, refund of payments or other appropriate actions, including warnings to the Entrepreneur or its Direct Sellers, cancellation or termination of the Direct Seller's contracts or other relationships with the Entrepreneur, exclusion of Entrepreneurs from RODSA membership, and the publication of such actions and sanctions.

5.5 Complaint Handling

Entrepreneurs, RODSA and Code Administrator shall establish complaint handling procedures and ensure that receipt of any complaint is confirmed within a short time and decisions are made within a reasonable time.

Handling of consumer complaints shall be free of charge to the Consumer.

5.6 Entrepreneurs’ Complaints

Complaints of an Entrepreneur about another Entrepreneur or RODSA shall be resolved either by the Code Administrator or an independent arbitrator. RODSA shall define details of the procedures.

5.7. Amendments

This Code may be amended by vote of two-thirds of the Board od Directors.

5.7 Publication

RODSA shall publish the Code and make it known as widely as possible. Printed copies shall be available free of charge to the public.

The RODSA Code of Conduct for Direct Selling (hereinafter referred to as the "Code") is published by the Direct Selling Association of Romania (RODSA) for national entrepreneurs carrying out the activity within the scope of direct selling (“Entrepreneurs”). The Code concerns the relations between Entrepreneurs which are RODSA members and Direct Sellers on the one hand and Consumers on the other hand. It also concerns the relations between Entrepreneurs and Direct Sellers, between Direct Sellers and between Entrepreneurs . The Code is aimed at achieving the satisfaction and protection of consumers, the protection of Direct Sellers, the promotion of fair competition in the framework of free enterprise, the enhancement of the public image of Entrepreneurs, and the ethical representation of the Direct Selling industry's earning opportunity.