DSE would like to extend a gracious

The Auditorium

The audience looks on as the panelists discuss consumer protection in the EU at the Solvay Library in downtown Brussels

thank you to all those in attendance for our first semi-annual conference entitled Direct Selling and the Future of Consumer Protection in the European Union on September 22, 2011. The event was a considerable success.

A very informative discussion led by keynote speaker, Dr. Andreas Schwab (MEP), promised that the future is looking bright for consumers protection in the EU. Dr. Schwab stated that the purpose of the newly passed Consumer Rights Directive was to, “achieve consistent rules for both contract types and a balanced level of consumer protection.” He then went on to say, “I think we have succeeded this aim.” Ms. Pachl of BEUC underlined the point made by Dr. Schwab in the panel discussion when she said that, “the CRD is indeed a step forward for consumer protection in the EU.”

In addition to the Consumer Rights Directive, the prospects of EU Contract Law and a policy of Collective Redress also featured prominently in the evening’s debate with generally positive feelings expressed by the panelists on the potential effectiveness of the initiatives with a few adjustments.

DSE’s advice? Breathe easy consumers and direct sellers. Amidst the current market speculation and financial crisis in the EU, find a positive in the direction the EU is taking with business and consumer rights.

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From a cookware brand just selling containers, Tupperware gone through a significant evolution—and its success can be credited to a global network of business women.

Through dozens of years recruiting, empowering, and educating women, the “Tupperware effect” has created a sales force numbering 2.6 million, primarily in China, India, Indonesia, Latin America, South Africa, and the CIS.

This has translated into more than just financial success for Tupperware (though the company reported a 28% increase in earnings per share in 2010.)  Tupperware hopes that by showing women how to become entrepreneurs, countries can change from the bottom up.

“In many of the emerging markets of the world, there are very limited earning opportunities for women. There either are no opportunities for her or she’s under-employed.  We provide her an opportunity to start her own business,” said CEO Rick Going.

To help consultants start their businesses, the Tupperware Corporation provides microfinance loans and relatively in-depth training.  In some markets, women can attend a free 13-week training program at a Tupperware University.  After graduation, the consultant is provided with a coach or mentor.  In markets such as Indonesia, many women go on to earn six figure salaries.

Women make up 99% of the Tupperware sales force, and are behind 80% of all purchases made in the world.

“To get a country moving towards progress, the best leverage point is women. If you have an empowered woman, then you have children who get an education. She lifts the whole society,” Going said. “That’s what we do. And it’s good for business.”

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For direct sellers, business is no longer confined to a home visit.  As consumers become increasingly tech-savvy, traders are also finding new ways to connect to their representatives and customers. Using the latest social media tools allows companies to better contact users, advertise new products, and showcase philanthropic efforts.

Tupperware Brands has a strong presence on both Twitter and Facebook.  Members who decide to “friend” Tupperware can share recipes and party ideas, as well as view new products.  The brand’s page is available regionally for customers in the U.S. and Canada, Malaysia, Indonesia, and Germany, allowing direct sellers in those regions to form a stronger sense of community. Cosmetics company Jafra and Pierre Lang Designer Jewellery also use Facebook to showcase new produces and advertise in multiple languages.

Beyond just a communication tool, Tupperware Brands also uses social media to improve business practices. The company Facebook page features videos on how users can manage their business online and better contact customers. Other videos highlighted the recent Toys for Tots charity drive held in the United States.

As executives of direct-sales companies recently told the LA Times, customer loyalty is linked to a company’s ability to control the product, brand, and consumer experience.

Social media tools help to build brand recognition, allowing companies to keep their products competitive and viable in an increasingly crowded market.  By catering to consumers who already use the internet for business and pleasure, direct sellers can connect to a larger demographic of potential new customers.

NOTE: Sales representatives for direct sellers should first consult their company before starting in these new media, as many have extensive and detailed online policies that all consultants must respect.

Check out DSE members’ new media pages here :

Tupperware

http://www.facebook.com/TupperwareBrandsCorp?ref=ts

http://www.youtube.com/tupperwarebrands

http://twitter.com/TupperwareWW

Pierre Lang :

http://www.facebook.com/bijoux.pierrelang.fr

Jafra Cosmetics International :

https://www.facebook.com/pages/Jafra-Cosmetics-International/177230730244

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The European Parliament’s Internal Market Committee narrowly voted in the proposed Consumer Rights Directive on February 1.  The draft law is designed to give consumers more confidence when they shop online, harmonise consumers’ rights in distance sales and off-premise sales, and improve cross-border trading.

Current regulations for EU consumer protection in distance and off-premise sales contain information requirements and rules about the consumer’s right of withdrawal.  However, they are not explicit with regard to the length of the cooling off period (in which the consumer can cancel a contract with no penalty), or what traders and consumers must do when the right of withdrawal is used. The resulting legal uncertainty be especially damaging for online commerce.

The directive covers almost all sales, excluding only financial services, social services, health care, and online gambling.  It also fully harmonizes provisions on information requirements and the right of withdrawal.

Noteworthy points:

  • Cooling off periods. Distance and off-premises contracts throughout the EU now give customers a 14 calendar day period in which they may change their minds.  Standard withdrawal forms and standard information notice help traders provide consumers with all the necessary information to successfully withdraw from a transaction.
  • Clear obligations for consumers during withdrawal. Consumers must send back goods within 14 calendar days after the withdrawal, and will only be charged the direct costs of returning the goods.
  • Sanction for the omission of information. If the consumer does not receive information about the right of withdrawal, the withdrawal period is extended to six months.
  • Pre-contractual information. Traders must provide customers with a clear set of information, including the main characteristics of the product, geographical address and identity of the trader, the price including taxes, all additional freight, and delivery or postal charges.
  • Delivery and the passing of risk to consumers. If a trader fails to deliver goods in time, the consumer may terminate the contract and receive money back.  Additionally, the merchant will bear the risk for any damaged goods until it is in the consumer’s possession.

Consumer protection was strengthened in the following areas:

  • Default pre-ticked boxes which apply to payments are banned. Customers will be able to seek reimbursement for extra payments to which they have not actively agreed.
  • No hidden charges. Consumers will not be forced to pay for additional costs if they are not informed about them.
  • Right to withdrawal from business-to-consumer online auctions.
  • Online cost confirmation. Consumers must explicitly confirm the price and contract duration when buying from a web-based trader.
  • Strengthened protection against pressure selling. In sales negotiated away from business premises, there have been a high number of situations in which insufficient consumer protection was granted.  There is now a broader, new definition of direct selling contracts.

Member states have also agreed on opening clauses that will allow them to have:

  • a threshold up to €60, under which off-premises contracts do not fall under directive provisions
  • written confirmation by consumers for telephone sales
  • consumer payments during the withdrawal period for off-premises contracts banned.

Parliament as a whole will vote on the directive in the March plenary session.

For more information, see:

http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+IM-PRESS+20110131IPR12811+0+DOC+XML+V0//EN&language=EN

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The German Supreme Court stated on 12 January 2011 (case No. VIII ZR 346 / 09) that photos in online sales are binding.

In this case, a customer wanted to purchase an accident-damaged car from a dealer for EUR 5.120,-. The vehicle was offered for sale online. In addition to a detailed description of the vehicle, multiple photos of the car were added. One of the features clearly recognizable in the photo was an auxiliary heating. However, an auxiliary heating wasn’t mentioned in the vehicle description as supplementary equipment.

When the dealership sold the car without auxiliary heating, the consumer requested reimbursement of the costs for the purchase and installation of that feature. Even though the specific claim put forward was not successful, the Supreme Court stated that descriptive images / photos are binding.

Photos are a popular and useful means to offer and describe products, especially in the internet. Sellers should therefore select the photos carefully and make sure that the picture content and the actual product being delivered correspond with each other.

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Austrian Direct Selling Association Handelsverband joins DSE

Handelsverband, the Austrian Retail Association represents the direct selling, stationary retail and distance selling industry in Austria. We formally joined DSE on 11 December 2010.  The leading direct sellers active in Austria joined Handelsverband in 1985. It is a non-profit association. Members of the Austrian DSA are: AMC, Donauland, ENJO, Jafra, Lux, Party-Lite, Pierre-Lang, Tupperware, Verlagsservice and Vorwerk.

Together the Handelsverband Members provide earnest income earning opportunities to many Austrians. For more information on Handelsverband, please visit their website on: http://www.direktvertrieb-online.at/. For more information on Direct Selling Europe please visit www.directsellingeurope.eu

DSE and it Members are pleased to welcome Handelsverband and look forward to further enhancing the strong voice of the European sustainable and ethical Direct Selling sector.

Contact:

Marc Pouw

Managing Director
+32 486 511 384
mp@directsellingeurope.eu

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Direct Selling Europe members are committed to providing customers with a positive shopping experience and full satisfaction through high quality products and ethical and sustainable business practices. Direct selling offers customers the unique opportunities to watch a demonstration of a product being used and to extensively test the product prior to purchase, an experience that cannot be replicated in any other sales context. While some direct sellers use tactics to push their products on customers, Direct Selling Europe members have developed strategies to engage customers in a safe and effective sales atmosphere for both the buyer and the seller.

Direct Selling Europe members have taken a sales strategy known as cross-selling and have utilized it in a new way, one that further enhances the shopping experience for the customer. Cross-selling, as used by Direct Selling Europe members, is one of the most effective and safe strategies a seller can utilize to ensure that the customer walks away with the maximum satisfaction possible. Through techniques such as bundling, direct sellers provide customers with more information about the products they are offering and how best to supplement their purchase with complementary items.

Tips for fair and valuable cross-selling:

1.      Bundle Products – Allow customers to easily purchase several products that compliment one another.

2.      Offer Choices – Give customers a wide range of price options that allow customers with many different budgets the ability to purchase products.

3.      Showcase Recommendations – Allow customers to give feedback on products and display that feedback for other customers to reference when making a decision on a product.

4.      Utilize Websites – Display products, bundles, price options and recommendations online to allow customers the ability to access you products from the comfort of their own home.

More information on DSE Member companies can be found here.

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UNIVENDITA Joins DSE

By admin | Filed in General Information

UNIVENDITA, the new Italian Direct Selling Association (founded in September 2010) formally joined DSE on 8 November 2010. UNIVENDITA is the non-profit association representing the interests of the sustainable and ethical direct selling industry in Italy. UNIVENDITA Members are CartOrange Srl, Jafra Cosmetics Spa, Just Italia Spa, Tupperware Italia Spa, Vorwerk Contempora Spa and Vorwerk Foletto Spa.

Together the UNIVENDITA Members realize about 50% of the total turnover in direct selling in Italy. This further reinforces the exponential growth of DSE, the Brussels based trade association for the European sustainable direct selling industry.

For more information on UNIVENDITA please visit their website on: www.univendita.it. For more information on Direct Selling Europe please visit www.directsellingeurope.eu

DSE and it Members are pleased to welcome UNIVENDITA and look forward to further enhancing the strong voice of the European sustainable and ethical Direct Selling sector.

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According to data released by the European Commission’s Consumer Centres’ Network (ECC-Net), distance selling is responsible for only ten percent of all complaints handled by the ECC each year and doorstep selling for even less at just over one percent. The ECC-Net handles over sixty thousand consumer complaints and attempts to assist consumers with cross-border transactions.

Additionally, from 2006-2009, distance selling accounted for less than both on the premise complaints and e-commerce complaints.

More facts and figures from the ECC-Net regarding consumer complaints can be found here.

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Interested in purchasing products from direct sell companies? Choose products at a DSE Member company party and feel confident that:

  • ~You can extensively test and try out your purchase before deciding to buy it,
  • ~You will receive transparent and fact based information about your purchase,
  • ~You will never experience hidden clauses or “small print,”
  • ~Your purchase comes with the best guarantees and return policies in the industry,
  • ~You will experience a fun shopping atmosphere and purchase quality products from honest companies.

More information about DSE Members and the products they sell can be found here.

Interested in purchasing products from direct sell companies? Choose products at a DSE Member company party and feel confident that:

· You can extensively test and try out your purchase before deciding to buy it,

· You will receive transparent and fact based information about your purchase,

· You will never experience hidden clauses or “small print,”

· Your purchase comes with the best guarantees and return policies in the industry,

· You will experience a fun shopping atmosphere and purchase quality products from honest companies.

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