General Information
The EU Consumer Rights Directive 2011/83/Eu is a fully harmonized directive, which became Swedish national law at the end of 2013. The Act on Consumer Protection in connection with the Distance and direct selling contracts made outside fixed premises 2005:59 have been amended accordingly.
Cooling-off Period
The current cooling-off period is 14 days after delivery of the goods. If the contract is for services the deadline is 14 days after the making of the contract. This is regulated in the Act of Distance and direct selling contracts made outside fixed premises 2005:59.
Pyramid Schemes
This is banned in Sweden an regulated in the Marketing act 2008:486 as well as in the act of Gaming 2018:1138 . “Pyramid games are under Swedish law to be understood as a game in which the profit derives from future participants’ efforts and the profit opportunity depends on the number of participants who subsequently enter the game”.
Multi-Level Marketing
Most direct sales companies make use of the multi-level marketing method. A business method where goods or services are traded within a pyramid-like structure, so-called Multi-level Marketing. Such a system can be used for full legal sale of mainly goods. Sometimes, however, goods or services are traded in the system that are completely lacking in value or which have only a very small value. Such activities may be covered by the scope of the Gaming Law 2018:1138
Prohibition on Products
Generally, there are no prohibitions on the sale of any consumer products by the direct selling industry. However, certain products and labelling of those products (e.g. nutritional products, foods, herbal remedies, cosmetics) are regulated in several EU laws.
EU regulation 1924/2006 – Nutritional- and health claims for foods
EU regulation 432/2012 – Approved health claims for foods
EU regulation 1169/2011 – Information for foods
EU regulation 1223/2009 – Cosmetic products
EU regulation 655/2013 – Common criteria’s regarding claims for cosmetic products
Commission Regulation (EU) 2021/77 – Refusing to authorize certain health claims
Credit Restrictions Country
Consumer credit act 2010:1846. This law applies to credit that a trader leaves or offers to a consumer. The law also applies to credit that is provided or offered to a consumer by someone other than a trader, if the credit is conveyed by a trader as agent for the creditor.
The consumer service law 1985:716 applies to contracts for services that traders perform for consumers in cases where the service relates.
Money Collections
Direct selling companies and direct salespeople are free to collect any payments or down payments at any time.
Licenses
No license is required for direct selling
Status of Direct Sellers
Direct sellers are defined as independent contractors and are responsible for their own taxes, social charges and VAT. This is covered in the Swedish General tax law
Earnings Claims
Earnings claims have to be honest, lawful, decent and true. Additional requirements are imposed in our ethical rules. The Marketing act 2008:486.
Taxes and Fees
Direct sellers are responsible for their own taxes, social charges and VAT. This is covered in the Swedish General tax law.
Social Security
Direct sellers are responsible for payment of their own social security charges. This is covered in the Swedish General tax law.
Others
Consumer Purchase act 1990:932
Product Liability Act 1992:18Product safety act 2004:451Act on contract terms in consumer relations 1994:1512Price information law 2004:347