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
selling is regulated by the Consumer Protection Act. It is also affected by the Data Protection Act. The Unfair Competition applies in any case in which it may appear that a particular direct selling scheme is considered contrary to good business practices.
Cooling-off Period
Under the Consumer Protection Act, the cooling off period runs seven days from the time of receipt of a direct sales or the receipt of the goods or first consignment of them.
Pyramid Schemes
The Market Court has established that under the Unfair Competition Act, pyramid schemes based upon unlimited expansion, where profits are made on each new recruit, are contrary to good business practices.
Multi-Level Marketing
There are no limitations on multi-level marketing. A particular scheme may, however, constitute a breach of the Unfair Competition Act if it is the same as a pyramid scheme.
Prohibition on Products
There are no specific prohibitions as such but trade in certain goods requires authorisation, be it direct or any other kind of selling.
Credit Restrictions Country
The Consumer Protection Act contains provisions on consumer credit which apply to all forms of trading, including direct selling. The main points are that a consumer credit agreement must be in writing and must give appropriate information on the cost of the credit and other relevant matters, as for marketing consumer credit. Other rules cover early repayment, the seller’s right to premature termination of the agreement and repossession of the goods sold on credit.
Money Collections
There are no limitations.
Licenses
There is no specific requirement for licensing.
Status of Direct Sellers
Their status may be that of an independent entrepreneur or an employee. There is no specific status as such.
Earnings Claims
There is no difference between the rules governing direct sellers and other forms of trading.
Taxes and Fees
There is no difference between the rules governing direct sellers and other forms of trading.
Social Security
No information.
Others
No information.