Direct sellers push for protection

June 19, 2010 11:48 am 

CEBU CITY, June 19 – The Direct Selling Association of the Philippines (DSAP) has said it will draft a proposal to Congress that will protect consumers against unsavory business practices.

”We are in the forefront in the drafting of the Direct Selling Law in the country that will protect consumers form all unscrupulous businesses,” said DSAP chairman Ador Bonquin in a press briefing at Club Ultima in Cebu City Thursday.

He said the proposal, if enacted into law, will significantly contribute to the Consumer Act of the Philippines that generally protects the interests of consumer, promotes general welfare and standards of conduct for business and industry.

”Direct selling is a growing industry. There is a need for regulation of companies that venture into this business, especially if it engages in person-to-person selling. We want to protect the public from all types of scams,” Bonquin said.

He said the group will look for someone to author the proposal in the Senate.

DSAP is in Cebu today to conduct a one-day certificate course in direct selling and network marketing. The certification course is part of DSAP’s nationwide campaign “Lakbay Hanapbuhay” that seeks to introduce the business of legitimate direct selling and multilevel marketing to more Filipinos.

”This certification course is designed to promote the direct selling and networking marketing as one of the best options among entrepreneurs and people looking for an extra source of income,” Bonquin said.

DSAP education committee director Perry Mogar reported that from over 50 countries, the direct selling business is estimated to grow this year at US$ 120 billion in retail sales and 65 million in sales people. The growth in the direct selling business is buoyed by the increasing number of multi-level marketing companies, mass entry of food supplement companies, entry of pre-need companies in multi-level marketing, increase usage of binary compensation and more professionals joining the industry.

”The direct selling in the country is thriving. DSAP, which has 26 member companies, is estimated to grow this year at P25 billion in sales with 2.2 million sales-force. This translates to about 14 percent annual growth,” Mogar said.

The organization said there is still a need to increase awareness of legitimate direct selling business in the country.

”It has the potential to continually grow as this is one of the businesses that fuels economic activities during crisis and a source of income for the unemployed,” Bonquin said.

The Cebu leg of Lakbay Hanapbuhay is the second provincial run in the program after Cagayan de Oro City last year. DSAP is affiliated with the World Federation of Direct Selling Associations (WFDSA). (PNA) scs/EB/bh

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