Direct Selling

Direct selling is a fast expanding business. In order to regulate and promote genuine direct selling businesses, protect the consumer and ban all illegal pyramid direct selling scheme, the government has passed the Direct Sales Act with effect from 1 June 1993.

 The Act states that companies wishing to operate this line of business must apply for and obtain a Direct Sales License. At the same time, distributors working for the company must have with them at all times, their identity card, and an authority card showing the relevant details as required in the Act. Distributors are also not allowed to call on customers either on a Sunday or Friday (the rest day for the state), on public holidays, and between 7 p.m. to 9 a.m. daily on other days.

 Furthermore, sales to consumers costing RM300 or more per transaction require a Direct Sales contract. This contract must be in writing signed by both the seller and the buyer, list details of the product or services rendered, and have a cooling-off period of 10 working days. This cooling-off period allows customers to change their mind about buying the product or service.