The UK Direct Selling Association has renewed its calls for greater adoption of recognised industry standards across the UK market, calling the situation ‘increasingly urgent’.
Susannah Schofield OBE, Director General of the Association, which counts D2C retailers Avon, Oriflame, Usborne, and Neal’s Yard Remedies Organics among its members, cited the rise of artificial intelligence (AI), social commerce and continued demand for flexible earning opportunities to supplement household income, as creating significant new challenges for the sector.
Susannah Schofield OBE, Director General of the Direct Selling Association, comments: “The way products are discovered, marketed and purchased has changed dramatically in recent years, and consumers are increasingly engaging with brands through social platforms, while businesses are making greater use of AI-powered tools.
“While AI is creating significant opportunities for legitimate direct-to-consumer businesses, it is also making it easier than ever for rogue players to appear legitimate through the creation of seemingly authentic product descriptions, earnings claims or health-related content that may not be legally compliant. The sheer volume of such material can make it challenging for already-stretched consumer bodies to keep up, increasing the importance of transparency, accountability and consumer trust.”
Recent complaints investigated by the Association include assisting a UK consumer who had invested more than £15,000 in a business opportunity promoted by an overseas direct selling organisation. Working with international counterparts and the company’s compliance team, the DSA helped secure an investigation that ultimately led to the suspension of the individual involved and a settlement with the complainant.
The Association has also provided support to Trading Standards investigating rogue operators and has supplied evidence relating to industry standards and best practice in a case involving alleged misconduct.
Since launching its original campaign in January 2024, the Association has engaged with businesses across the sector, as well as policymakers, regulators and industry stakeholders, and has seen growing awareness of industry standards. However, the emergence of AI-enabled marketing techniques and the rapid growth of social commerce have created fresh challenges that reinforce the need for wider adoption of recognised Codes of Conduct.
The Association believes the demand for flexible earning opportunities is likely to remain strong in the years ahead. However, it warns that as social commerce grows and technology such as AI reduces the barriers to market entry, consumers and independent sellers alike must be able to identify businesses that operate to the highest standards.
As a result, it is urging consumers and prospective independent sellers to look for the Direct Selling Association logo when choosing a direct selling company, providing reassurance that the business has been independently assessed against the industry’s Codes of Conduct.
The Association’s Codes of Conduct, which go above and beyond UK consumer law, offer higher levels of protection to both customers and independent direct sellers, setting out clear requirements covering ethical business practices, transparent marketing, fair treatment of independent sellers, customer protections and effective complaint handling procedures.
Membership of the Association is only granted following a rigorous audit process designed to ensure compliance with these standards. Companies are required to demonstrate that their policies, procedures and business practices meet the Association’s strict requirements before membership is approved, and member companies are regularly monitored and audited to ensure compliance is maintained.
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