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Thread: MLM/Network Marrketing

  1. #1

    MLM/Network Marrketing

    Hi there,

    I'm interested in finding out what are the laws governing Network Marketing/Multi Level Marketing in South Africa?

    I've heard that you must be registered with the Direct Selling Association of South Africa, others have told me that you must be registered and recognised by the Department of Trade & Industry whilst others told me that as long as it is a registered company.

    So I want to see what Laws governs this type of business, so can anyone help?


  2. #2
    Senior Member Subscriber Sharon's Avatar
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    Nov 2010
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    Hi Brent.. welcome to the forum!

    DSA - Direct Selling Association of SA - is actually a self regulating body and membership is voluntary. That said, membership certainly gives a MLM company credibilty as they have a strict code of ethics and various tiers of membership starting with Probationary membership.

    The other one to register with is DMA - Direct Marketing Association of SA - but again, I'm sure this is voluntary.

    I can think of no reason why you would have to register with Dept of Trade and Industry unless the 'product'/business requires such registration

    Any other association registration will again depend on the nature of the business/product.

    eg a MLM I have belonged to since 2004 is a registered Financial Services Provider as as such has to be FAIS compliant

    The biggest problem is that there have been more unsuccessful MLM companies than successful in SA - so people are very sceptical.
    for that reason, while membership of DSA and DMA are not compulsory by law, it's strongly recommended.

    Courage is not about having the strength to go on.. it's about going on when you DON'T have the strength!

  3. #3
    I think that you are going to have to pay careful attention to the CPA (Consumer Protection Act), as are most of us. The problem may well be in the chain of supply, and the fact that MLM suppliers will have to start taking a keen interest in the claims made by every one of their agents, down the line and to the very tip of the branch.

    The consumer who is swindled can go against any one of those in the branch, jointly and severally. So his attorney will attack the one with money, and the one least able to defend himself.
    This assertion needs investigating by someone.
    Mark Corke
    Suitegum Sells Businesses
    Mergers, Acquisitions, Rescues, Knowledge

    083 399 2666
    | skype: markcorke | +MarkCorke | LinkedIn | @MarkCorke



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