Report Topics:
1:- General Information
2:- Cooling-off Period
3:- Pyramid Schemes
4:- Multi-Level Marketing
5:- Prohibition on Products
6:- Credit Restrictions Country
7:- Money Collections
8:- Licenses
9:- Status of Direct Sellers
10:- Earnings Claims
11:- Taxes and Fees
12:- Social Security
13:- Others
General Information
No information.
Cooling-off Period
Under Austrian consumer protection legislation, every sales contract made away from the business premises of the seller is subject to a seven (7) day period of reflection on the purchase or lease, with the right to cancel without obligation or penalty. Sales must have been initiated by the seller or his representative. Most sales made away from the seller’s place of business are covered. The seller must give the buyer a receipt or copy of the contract, showing the name and address of the seller and notice of the buyer’s right to cancel the contract. If the buyer cancels the sale, the seller must rescind the contract. Any deposit or down payment must be refunded with interest at 5%. The buyer must enable the seller to recover any goods already delivered.
Pyramid Schemes
There is no special law prohibiting the promotion or operation of pyramid schemes but the courts may declare such schemes as immoral and fraudulent (contra bonas mores).
Multi-Level Marketing
No legislation.
Prohibition on Products
Under Article 57 of the Trade Act 1973, direct sales (visiting consumers with the aim of soliciting orders) are not allowed for the following products:
foodstuffs; cosmetics; toxic substances; drugs; health products; textiles; clocks and watches; goods made of gold, silver or platinum; jewellery and precious stones; weapons and ammunition; tombstones and related funereal items.
These regulations were updated in 1988 to include the prohibition of parties held in private households to promote the selling of these goods.
Credit Restrictions Country
The Consumer Protection Act contains regulations governing lending. Their primary aim is to ensure a meaningful disclosure of credit terms to enable a consumer to compare the various credit terms available. The rules require the creditor to disclose to the consumer all the costs of credit. This Act also applies to credit given by the seller or a third person whenever these persons work together. Credit given by banks independent of any purchase or lending of consumer goods are regulated by special laws on banking. Creditors must disclose all the costs of credit.
Money Collections
No legislation.
Licenses
Everybody doing business in Austria must apply for a trade licence. Sellers of consumer goods are required to have commercial schooling and two years experience in commerce. Promoters of commercial goods who give consumers information about the goods and where they can be bought are also required to obtain a trading licence. Everybody who is of age may qualify for this licence. The regulations on trade licensing enact that door-to-door solicitations are not allowed outside the borders of the municipality where the caller has his registered place of business without prior written invitation by the resident.
Status of Direct Sellers
Direct sellers are mostly independent but there are also direct selling companies with a number of employees. Non-employees acting regularly as direct sellers over a period of time have to obtain a trading licence. As independents, they are exempted from the wage/hours provisions of the labour laws.
Earnings Claims
No legislation.
Taxes and Fees
Individual: All direct sellers must file an annual tax return. They must also pay social security charges, the rate depending upon income.
Corporate: All direct selling companies must pay Federal Income Tax and other taxes. VAT is rated at 20%. Most corporate taxes are collected by the federal authorities.
Social Security
No information.
Others
No information.
The WFDSA International Guide to Direct Selling Legislation is a guide and is not exhaustive either in terms of subjects presented or for all areas of concern to direct selling companies. It is intended to cover general areas of concern. The Guide is not a substitute for legal counsel but only intended to alert you to the general nature of laws and regulations affecting the direct selling industry in a particular country. Consequently, before beginning an operation in any foreign country, it is strongly recommended that competent legal counsel be consulted. While every effort has been made to insure that the information contained in this Guide is accurate, the variety of sources used makes absolute verification difficult. Further, laws and regulations also can change from time to time without notice. Therefore, the WFDSA cannot be held liable for the information included in this publication.