US DSA announces its support for the Anti-Pyramid Promotional Scheme Act of 2017, H.R. 3409, bipartisan consumer protection legislation introduced by Reps. Marsha Blackburn (R-TN) and Marc Veasey (D-TX). The legislation will help consumers avoid illegal scams, and provide definitive guidance to direct selling companies in the industry on acceptable, ethical business practices. “DSA is committed to continually enhancing the industry’s self-regulation and transparency, and has long worked to promote strong consumer protection legislation at the state and federal level,” said US DSA President Joseph N. Mariano.
H.R. 3409 would define a pyramid scheme in federal statute as it is in all 50 states. The legislation uses a similar definition as codified by dozens of states and in numerous court decisions. It would also require all direct selling companies to adopt the same gold standard buy back policy as required under DSA’s Code of Ethics. US DSA member companies must buy back unused inventory at 90 percent or more of the original cost—an unparalleled consumer protection that is not seen outside of the industry.
“At the end of the day, this is all about protecting American consumers,” Mariano said. “DSA strongly supports a federal statute to provide a definition of a pyramid scheme as all states have done. DSA will continue to have conversations to strengthen support for and help shape this critical legislation with a goal of securing its final passage.”
As the voice of direct selling companies in the U.S., US DSA sets high ethical standards, grounded in a rigorous set of standards in a Code of Ethics that its member companies abide by. The US DSA Code’s requirements far exceed the minimum standards imposed by applicable laws and regulations. It is enforced by an independent administrator, who is responsible for resolving complaints made against member companies.