Prohibition on Products
Argentina
No exclusive legislation for direct selling prohibiting sale of products or services. Certain regulated industries (e.g., wine and spirits, securities, insurance) have requirements across the board but do not discriminate against direct sellers per se.
However all dietary supplement (industry including) affected by following regulations: Any dietary supplement containing herbs must have each herb approved by the MOH (Ministry of Health) and published in the Argentine Codex prior to get the registry.
All dietary supplements must contain at least 20% RDA (Recommended Daily Allowance).
Products already registered in the past (as of 1998) had to be re-submitted in order to fulfill these requirements
Australia
Generally, there is no prohibition on the sale of any consumer products by direct sellers with the exception of certain therapeutic goods. Companies would need to check the requirements that apply across the board for certain regulated industries. All therapeutic goods and devices (including vitamin and mineral supplements) must be registered with the Therapeutic Goods Administration which is a division of the Federal Department of Health and Community Services.
Austria
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.
Belgium
The decrees applying the law on canvassing activities prohibit the sale of certain products for certain types of sales. The main prohibitions are the following:
- General prohibition:
Stocks and shares of any kind, even those quoted on the Stock Exchange. - Prohibition of ambulant trading, ie, in public markets, door-to-door sales and in public places:
– pharmaceutical products
– drugs and medicinal plants
– medical, orthopaedic and electro-therapy apparatuses
– optical articles and instruments
– precious metals and items manufactured therefrom
– precious and semi-precious stones
– real pearls, including cultured pearls
– weapons and ammunition
– spirits - Prohibition of door-to-door selling and in public places:
– electrical apparatus and accessories other than electrical household appliances
– radio-electrical apparatus and accessories
– lights
– artificial jewellery
– textile products
– leather articles
– shoes and products to manufacture / repair them
– fancy leather goods
– clock and watch making articles
– items for smokers - Prohibition of door-to-door selling:
– seeds and plants
– wine
– grocery products
– bakery products
– fresh meat
– meat preparations, frozen or not
– second hand goods.
Brazil
Generally there is no prohibition on the sale of any consumer products by direct sellers with the exception of medicine and similar
Canada
There are no prohibitions on the sale of any consumer product by direct sellers. Certain regulated industries have requirements that apply regardless of the distribution method and do not discriminate against direct sellers per se (e.g., wine, liquor, drugs, securities, insurance, etc.). The DSA does prohibit companies selling products that are illegal in certain provinces from being admitted into membership.
Chile
There is not a specific legislation prohibiting the commercialization of products through direct selling.
However, certain products (alcohol beverages, pharmaceutics products, food, etc.) have restrictions for their free commercialization, and there are other products which commercialization is prohibited (illegal drugs, protected animals, etc.) and, therefore, such commercialization may even constitute a criminal offense under Chilean law.
Columbia
Generally, there are no prohibitions to sell any product by direct sellers. Certain industries such as cosmetics, personal and home care products and food, among others, have certain sanitary requirements for all sellers in that industry. These regulations do not discriminate against direct selling methods.
However, a new regulatory decree banned phitotherapeutic products ( natural plant products with a therapeutic properties) to be distributed through any other places different than drug stores and authorized pharmaceutic places. ( Decree No 2266 de 2004 article 39). Currently, the local DSA is analyzing this Decree and claiming against this background with the feasibility of having successful results.
Czech Republic
There is no prohibition on product sales through direct sellers.
DS restrictions on weapons, drugs and dangerous products
Denmark
In general, there is no prohibition on any products. Some medical products such as vitamin pills, slimming preparations and the like must have the approval of the Danish Health Board.
European Union
The free movement of goods is an underlying principle of the European Union (Articles 34 and 35 TFEU). The provisions governing the free movement of goods shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; or the protection of industrial and commercial property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.
Consult national laws for specific product bans.
EU law provisions on guarantees and product liability can be found in the Directive on Guarantee on Consumer Goods and in the Products Liability Directive.
Finland
There are no specific prohibitions as such but trade in certain goods requires authorisation, be it direct or any other kind of selling.
France
According to the article L.121-16-1 of the consumption code, Direct Selling’s Legislation does not apply to certain contracts, mostly because they are governed by a specific law. This includes the followings :
– contracts concerning social services including social housing, childcare and support of families,
– contracts concerning health services provided by health care professionals, including prescription, delivery of medicines and medical device,
– contracts concerning gambling,
– contracts concerning financial services,
– contrats drafted by a public officer,
– contracts concerning creation, acquisition or transfer of real estate or rights on real estate, construction of new buildings, significant transformation of existing buildings or leasing for residential purposes.
Therefore, the contracts above may not be sold by direct selling methods.
Germany
The most important provisions on the regulation of direct selling are contained in the Industrial Code of 1869 as amended. Under Title 3, ‘Itinerant Trade’, the following activities are excluded from direct selling, in particular the soliciting (offering for sale and inviting orders) are:
- poisons and poisonous goods
- orthopaedic appliances
- electro-medical appliances
- jewels, pieces of genuine jewellery
- securities, etc.
- alcoholic beverages (except beer and wine)
- brokerage of credit transactions
Some of these items are included because of their potential danger, others to protect the retail trade.
Hungary
The government decree 133/2007. (VI. 13.) defines the list of products the retail of which is banned through direct selling.
The following products may not be sold through direct selling channels:
- drugs and psycho-tropic substances, or any other goods classified as such;
- pharmaceutical products, substances and preparations classified as hazardous, also pesticides, substances for plant protection and crop improvement purposes and veterinarian products and preparations;
- foodstuffs (including mushrooms), with the exception of fruits and vegetables;
- sowing seeds and plant propagation materials;
- highly flammable and explosive substances and substances listed under the flammable and explosive fire-hazard category;
- hazardous wastes, and remnants and derivative materials containing hazardous components;
- gem stones;
- precious metal objects and products made of precious metal;
- excise products;
- the goods for the sale of which law requires a special license, or those banned by law or allowed to be sold only in stores (market).
India
This has already been answered above. At present the following laws exist on the said subject:
- Drugs and Cosmetics Act
- Prevention of Food Adulteration Act
- Essential Commodities Act
Indonesia
No legislation.
Ireland
There are no prohibitions on the sale of consumer products by direct sellers except where any such products are considered illegal by regulating authorities. The sale of any such products would also preclude the seller from being admitted as a member of the DSA of Ireland. The sale of certain products, e.g. medical products, is heavily regulated and may not be undertaken without proper authorisation.
Italy
Generally, there are no prohibitions on the sale of any consumer products by direct selling industry. Certain regulated industries (e.g., drugs, arms and explosives, precious metals and stones, medicines) have requirements that apply across the board and do not discriminate against direct selling.
Japan
Act on Specified Commercial Transactions protects a wide range of products and services in daily use. In addition, the Drugs, Cosmetics and Medical Instruments Pharmaceutical Law stringently prohibits direct selling companies from handling health foods and nutritional supplements which claim that a particular product has certain effects on a particular disease.
Act on Specified Commercial Transactions In this law, foes not cover the transaction of financial securities, commodity exchange programs, insurance plans and the like, made at the customer’s home, there are other laws that regulate them.
In this law, food and beverages sales are legislated and alcohol and tobacco may not be sold without a retail licence and are mainly sold in shops and stores. Rice may not be sold without a government licence.
The sale of contraband drugs and pornographic materials is, of course, prohibited by Japanese law.
Lithuania
There is no specific prohibition in relating to the direct selling excepts those which are applicable in general (for example such type of goods as medicine, guns, alcohols and etc. can be sold in specific places).
Malaysia
The DSA 1993 does not specify any prohibitions on sales of specific products.
However, direct selling companies who wish to introduce new products must seek prior approval from the authority before distributing the products. There are no specific guidelines on what are the products that can be sold or cannot be sold but all health products must be registered with the Drug Control Authority, Ministry of Health before they can be sold. products must be registered with the Drug Control Authority, Ministry of Health before they can be sold.
Mexico
Any product manufactured in Mexico or legally imported can be sold freely in the Country, if it fulfills with the General Health Law provisions, like Labeling Norms, Allowed Substances, etc. Medicaments cannot be sold through Direct Sale.
Recent modifications to the General Health Law require notices to be given, when advertising the sale of cosmetics. http://www.salud.gob.mx/unidades/cgins/insalud/publica/lgs/Ley_Salud.pdf http://www.salud.gob.mx/ http://www.cofepris.gob.mx/MJ/Paginas/Leyes.aspx
Netherlands
There are no restrictions on products to be sold by direct selling other than the restrictions that also apply for selling from business premises (drugs, alcohol, etc).
New Zealand
There are no general prohibitions other than those that are related to illegal substances internationally however there are a number of specific criteria that must be complied with which may otherwise prohibit products from being sold.
Dietary Supplements
New Zealand operates a similar set of Dietary Supplement regulations to that of the United States using a negative list arrangement. This means that if the ingredient is not banned or restricted it may be sold legally. In general terms this allows virtually any product that can be sold in the US or EU to be sold in New Zealand although occasionally some thresholds for some ingredients may differ. The major difference in that in labelling and advertising and promotional material no claims of any therapeutic benefit can be made as these are banned under the Medicines Act regulations 1999 unless the product is a registered medicine.
You may claim that the product promotes health or wellbeing etc. but cannot say for that it cures or prevents any particular illness or condition. This situation may change if the “Natural Products Bill” becomes law which will impose considerable costs to register both ingredients and products prior to sale of these products in New Zealand. This would be similar to the rules applied in Australia with limited recognition of registration being held in Australia. This proposed law is strongly opposed by the DSA and other industry organisations.
Children’s Nightwear
These are restricted under the Fair Trading Act using a mandatory standard to require labelling to show the fire risk.
Children’s Toys
These are restricted under the Fair Trading Act using a mandatory standard to require suitability for age to be shown and safe use for that age range.
Pushchairs (Children)
These are restricted under the Fair Trading Act using a mandatory standard to require compliance to the standard for manufacture and safety requirements.
Electrical Goods
These have mandatory standards applicable however means of compliance are permitted to show that the electrical product is safe and has been tested to operate on the New Zealand electrical system of 240 volts. Any product approved for Australia is deemed compliant for New Zealand however it should be noted that there are a range of Standards for specific product types exist and compliance with the appropriate standard is required. Many electrical standards are joint for both New Zealand and Australia. Companies are required to maintain manufacturing test and data sheets on file for each product for 7 years from the date of introduction to the market.
Gas Appliances
Any gas appliance sold must be notified under the mandatory system to the Energy Safety Service and must comply with the New Zealand Standard NZS5262. Means of compliance are varied but essentially if the appliance meets an internationally recognised standard such as those applicable in Australia, and it will burn safely on New Zealand gases, it may be notified to the register and sold. This is a web based register.
Foods
All food products must comply with the New Zealand Food Safety Authority joint standards before it may be sold in New Zealand or Australia. If the product is able to be sold in New Zealand then it also may be sold in Australia except where the product is banned in Australia. If it contains any genetically modified ingredient it must show this on the labelling. It must also show a full ingredient listing with the percentage of each ingredient Any product not displaying the correct labelling is illegal and will be ordered from the market. Food products must not contain any animal ingredient sourced from the UK, EU or any country where BSE is known to exist. Soya sauce products from China and Hong Kong are restricted to an approved list.
Cosmetics
All cosmetics are now governed under the Hazardous Substances and New Organisms Act 1996 – Cosmetic Group Standard 1 July 2006 which sets down the requirements for packaging, labelling and handling however specific exemption exists for products labelled and sold in the USA, the European Union and Australia as being deemed to comply with New Zealand requirements providing any ingredient specific obligations are met.
The cosmetic group standard sets out what is a cosmetic and covered and any product that does not fit must then apply as a similar substance to the EPA for approval before importing and selling the product. All known mainstream products are covered.
The Medicines Act also has some limited coverage of Cosmetics in that it sets out what claims must not be made in labelling or advertising of the product. Breeches of these claims rules are subject to action under the Advertising Standards Authority – Therapeutic Advertising Code and coverage includes point of sale materials and web sites as advertising.
Legislation currently before the Parliament could see this Act superseded by the Natural Products Bill which would introduce similar rules as are applied in Australia with an additional registration fee/audits etc. required prior to sale in New Zealand for some cosmetic products.
Chemicals and Cleaning Products
All chemicals and cleaning products are subject to the Hazardous Substance and New Organism Act 1996 and therefore if the chemical or cleaning product containing substances over the defined thresholds for Toxicity or eco-toxicity are exceeded then they must comply with the appropriate “Group Standard” for that product type. There are 6 subsections of the Cleaning products Group Standard dependent on the hazardous properties of each product as to where they are governed. Even so called, “environmentally friendly” products will need to comply with one of these if it is a cleaning product. Other group standards may be used providing the chemical can be reasonably defined as falling under that group standard.
Dangerous Goods (Aerosols & Flammable/explosive type products)
These are restricted in handling and under the Transport of Dangerous Goods Regulations of the Hazardous Substances and New Organisms Act regulations which cover the levels of some products by volume that can be shipped. This can impact particularly on distribution of these products to independent contractors with high compliance costs for packaging and unique transport companies having to handle these types of products.
These rules set down storage requirement that include approved handlers and storage facilities where the volumes being stored exceed the thresholds.
In some instances there are Group Standards that will need to be complied with even if the product is in small quantities. Aerosols are such a product type that must be complied with. Please note that if the product is an Aerosol Cosmetic it will only need to comply with the Cosmetics Group Standard which also picks up cosmetics that use aerosol delivery.
The DSA New Zealand has a disk available for purchase with this information available.
Norway
It is illegal to sell medical products.
Peru
No exclusive legislation for direct selling prohibiting sale of products or services. Certain regulated industries (e.g., wine and spirits, securities, insurance) have requirements across the board but do not discriminate against direct sellers per se.
Philippines
There are no prohibitions on the sale of consumer products by direct sellers, per se. However, the law regulates the production, sale, distribution and advertisement of food, drugs, cosmetics and devices in the interest of the health and safety of consumers. The sale of drugs and devices require a licence from the Department of Health.
Poland
No legislation.
Portugal
Financial services, real estate operations, health care and social services, touristic and travel agencies services, gambling and lotteries, food stuff and drinking, public services transportation.
Russia
The products that cannot be sold through direct selling are as follows: food stuff (excluding ice-cream, alcohol free beverages and beer, pastry (packed by the manufacturer)), medical drugs, articles made of precious metals and stones, arms and explosives, audio-visual products.
In accordance with the Russian Sanitary Rules and Norms food supplements (BAS) could be sold only through drug stores and special sections of department stores.
Singapore
There are some prohibitions on certain classes of products. Various laws make the sale, distribution or possession of such products illegal.
Slovak Republic
No legislation.
Slovenia
The regulation relating to food supplements is in accordance with Directive 2002/46/EC of the European Parliament . Nutrition and health claims according Regulation (EC) No 1924/2006
South Africa
There are no prohibitions on the sale of any specific products by direct selling companies. However, the sale of certain products such as wine and spirits, medical products and drugs are subject to specific requirements which generally debar them from sale as direct selling products.
Certain cosmetics have specific legislation as to content (e.g. skin lighteners) and these may be sold neither by direct selling companies nor by retail outlets.
The health authorities are currently investigating controls in the alternative medicines market which may or may not affect our members depending on the outcome of their final investigations.
South Korea
There are no prohibitions on the sale of any consumer product by direct sellers except drugs, toxic chemicals and insurance. However, price of any single product distributed cannot exceed 1.6 Million Won (including the VAT).
Spain
Royal Decree 1/2007 forbids direct selling in the home of food and beverages.
However, this prohibition does not exist in some laws on consumer protection promulgated by regional parliaments with “exclusive legislative power” on consumer protection.
So, in principle, food and beverages could be sold in the home in these regions.
Sweden
The only products that cannot be sold through direct selling are medical drugs and alcoholic beverages (including wine).
Taiwan
There are no prohibitions on the sale of consumer products by direct sellers, per Chapter 2, Section 1 of the Consumer Protection Law contains a number of provisions dealing with health and safety.
Thailand
The nostrum product and the fertilizer are prohibited on sales in direct selling business.
Turkey
No prohibitions on the sale of any consumer products by direct selling industry.
Ukraine
The products that cannot be sold through direct selling are as follows: food stuff (excluding ice-cream, alcohol free beverages and beer, pastry (packed by the manufacturer), medical drugs, precious metals and stones, arms and explosives.
There are special rules for selling those products without being specified as those that be sold through direct selling.
United Kingdom
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, electrical products) must be approved by UK / EU authorities for sale in the UK. Also certain regulated industries (e.g. drugs, alcohol, tobacco, medicines) have requirements or restrictions that apply generally and do not discriminate against direct selling.
United States
Generally, there are no prohibitions on the sale of any consumer products by direct sellers. Certain regulated industries (e.g., wine and liquor, securities, insurance) have requirements that apply across the board to all sellers in those industries, and the regulations do not discriminate against direct selling distribution methods. Some product lines (e.g., dietary supplements, telephone cards) have had requirements placed on their sale at the federal and state levels. Direct selling companies selling these product lines must thus comport with these various state and federal requirements.
General speaking, neither a company or a salesperson can make “drug claims” about a product unless they are approved by the U.S. Food and Drug Administration. Drug claims are when a marketer claims a product is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease.
All other product claims must be supported with competent and reliable scientific evidence. “Results not typical” language is generally deemed to not be a sufficient disclaimer about a non-typical result. Product claims must be substantiated by competent and reliable scientific evidence.
Testimonials and endorsements can’t contain claims that could not be made by the company.
Uruguay
No legislation prohibiting sale of products / services exclusively to direct sellers. Nevertheless, there are some products which can only be sold in specific stores (ie, sunglasses in optician’s shops, vitamins in drug stores).