OFT Consumer Code Approval Scheme

OFT Consumer Code Approval Scheme (CCAS)

The Direct Selling Association has secured approval for its consumer code of practice under the OFT's Consumer Codes Approval Scheme. The DSA is the third industry body to receive OFT approval for its code of practice.

The OFT only approves codes that are proven to safeguard and promote consumers' interests beyond the basic requirements of the law. DSA Full Member companies who have signed up to the code will be able to display the OFT 'Approved code' logo on marketing material.

OFT CCAS Newsletter #7- January 2006
'Buy with confidence when you see this sign' - OFT Approved codes launch to consumers...

DSA Members who have signed the CCAS licence agreement:

Amway UK Ltd, Avon Cosmetics Ltd, Betterware UK Ltd, Cambridge Manufacturing Co Ltd, Demarle Ltd, Forever Living Products UK Ltd, Golden Neo Life Diamite Int LTD, Herbalife (UK) Ltd, Kirby (UK) Limited, Kleeneze UK Ltd, Life Plus Europe Ltd, Likisma Presentations Ltd, Mannatech Ltd, Mary Kay Cosmetics (UK) Ltd, Miglio Company Ltd, ML International, Nature's Sunshine Products Inc, Neways Int (UK) Ltd, Nikken UK Ltd, NSA Ltd, Oriflame UK Ltd, Nu-Skin UK & Ireland Ltd, Partylite UK Ltd, Phoenix Trading, Pro-Ma Systems UK Ltd, Ragged Bears Publishing Ltd, The Body Shop International PLC, The Pampered Chef - UK Ltd, The Southwestern Company UK Ltd, The Virgin Cosmetics Company Ltd, Sunrider Europe Inc, Usborne Books at Home, VK Direct Ltd, Weekenders UK Ltd.

Leading the way

The news that the Office of Fair Trading (OFT) has approved the DSA Code of Practice has been welcomed by member companies, and by those who sell their products.

It is a significant step forward and as the CCAS logo becomes more widely recognised it will raise awareness and build consumer confidence.

Codes Launch Press Release - 22 July 2005
RAISING STANDARDS OF CUSTOMER SERVICE - OFT campaign to promote consumer codes approval scheme...

CCAS Launch Newsletter - March 2005
Find out what members and direct sellers alike think of the new code...

Announcing the approval for the DSA code, Penny Boys, OFT Executive Director, said:

'The home is a unique environment in which to shop so it is particularly important that direct sellers deal fairly with consumers. Our market study into doorstep selling, published earlier this year, showed how vital it is for consumers to know that they are dealing with reputable traders. OFT approval for the DSA code means that consumers can feel confident that they will be dealt with reliably and fairly by those who are DSA members. If problems arise, they will be put right through the DSA's procedures.'

Richard Berry, Director of the DSA, said:

'The OFT approval of the DSA consumer code is good news for consumers and responsible businesses. The selling of goods and services in the home is gaining in convenience and popularity. The DSA's aim is to ensure that anyone making a purchase in their home from a direct seller gets a level of service and protection that is second to none. From now on, consumers seeing the DSA and OFT Approved logos on business literature, will have that added trust and confidence in knowing they are dealing with a responsible business that gives greater protection to customers than is required by law.'

Sherrie Hewson, popular TV actress and star of Emmerdale and Loose Women, has lent her support to the code. 'It gives consumers confidence that they will be treated reliably and fairly when they shop with DSA members. If problems do arise, they will be dealt with swiftly and in line with the DSA code procedures.'


Cake Cutting Celebration for CCAS L to R - Alison Swift OFT Marketing Manager, Jerry McDonald Chair DSA and President Avon, Gary Furlonger OFT Head of Codes Support Team, Ceinwen Jones OFT Marketing Manager and Richard Berry Director of DSA UK	Official CCAS Launch 1st March L to R - Ken Wolfe CEO Betterware, Kathy Slater DSA, Sherri Hewson Actress, Sharon Harrison PR Amway, Jerry McDonald President Avon

The DSA's responsibility

OFT requirements are twofold:

Stage One - The code sponsor (DSA) must ensure that its code meets the OFT's core criteria and contains measures designed to remove or ease consumer concerns about undesirable trading practices in its sector.

Stage Two - The code sponsor must prove that its code lives up to the promise, demonstrating that the code is being effectively implemented by its members and that consumer disputes are properly resolved.

OFT notes

1. The DSA submitted its code on 26 September 2001 for assessment under the OFT's code approval scheme. It completed Stage One on 3 December 2002 and completed Stage Two on 16 December 2004.

2. The DSA was formed in 1965 and has 39 full members who use the services of 396,000 individual direct sellers. The DSA claims that over 70 per cent of the £2 billion of goods and services that are purchased annually by UK consumers in their homes are sold by DSA members. It is the third trade association to receive OFT approval for its code.

3. The OFT Approved DSA Code does not contain any provisions relating to the sale of financial products and services. DSA members will not be able to market such products or services under the OFT Approved logo, except for routine credit arrangements related to the sale of goods.

4. The Enterprise Act 2002 gives the OFT increased powers to help develop effective self-regulation through approving and promoting consumer codes of practice that meet the OFT's core criteria. The OFT's Consumer Codes Approval Scheme aims to promote and safeguard consumers' interests by helping consumers identify better businesses and to encourage those businesses to raise standards of customer service.

The Code

The main benefits to consumers dealing with Approved code members are:

• A 14 day cooling-off period during which consumers can cancel the contract (the statutory minimum provides a seven-day cooling-off period for unsolicited visits only)
• A consumer guide to shopping at home
• Guidance and training to direct sellers to ensure that they act with integrity and do not use misleading, deceptive or unfair practices
• A free independent arbitration scheme
• Regular compliance audits and consumer satisfaction surveys with a disciplinary committee to deal with members who do not comply with the code

Get the OFT Approved Code of Practice
Click to download the full OFT leaflet in PDF format...

Visit the OFT Consumer Code web site