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CODE OF ETHICS

PERUVIAN CHAMBER OF DIRECT SELLING

PREFACE

The Peruvian Chamber of Direct Selling (hereafter CAPEVEDI) is a private nonprofit organization that brings together companies that use the direct sales system.
CAPEVEDI use and publish the Code of Ethics for consumers, Independent Entrepreneur to companies, Companies in a different form of distribution if required.

ETHICS CODE TO THE CUSTOMERS, INDEPENDENT ENTREPRENEUR, BETWEEN INDEPENDENT ENTREPRENEUR AND BETWEEN COMPANIES

  • General Code of Ethics
  • Code of Ethics for Independent Entrepreneurs
  • Companies Code of Ethics among
  • Code of Ethics for Companies to Consumer
  • Implementation of the Code

General Code of Ethics

1.1 Scope

CAPEVEDI adopts this Code of Ethics as a regulatory measure that includes standards of ethical conduct for companies using direct sales system, members by said Chamber and all those companies involved in that system, which subsequently shall be admitted as members who agree to abide by its provisions as a condition of admission to the Chamber and to continue as members of this.
This Code of Ethics CAPEVEDI has as main objective the adoption of general rules to regulate the relationship between direct selling companies, direct selling companies and independent entrepreneurs, independent entrepreneurs, independent entrepreneurs and consumers, satisfaction and protection of the latter, as well as the promotion and dissemination of business opportunity direct sales offers.

1.2 Glossary of terms

For purposes of this Code, the terms used have the following meaning:

    • Ethics Code Administrator: A person or an independent body appointed by CAPEVEDI to observe compliance with the Code of Ethics for its business and settle claims arising from the breach of it.
    • Consumer: A person or entity that acquires, uses or enjoys as an end user products or services and intangible assets, to benefit himself or his family or social group, thus acting in an area outside a business or professional activity. We not considered as customer, for purposes of this Code, who acquires, uses or enjoys a product or service normally intended for the purposes of its business as a supplier. The entrepreneur that evidences a situation of information asymmetry with the supplier in respect of products or services that are not part of the turn of the business itself, in case of doubt about the final destination of a given product or service qualifies as a consumer who acquires, use or enjoy.
    • Company: Legal entity legally constituted using the direct sales system marketing products and / or services associated with CAPEVEDI and identified as one of its members with the logo of this identificatory.
    • Independent Entrepreneur: Natural or legal person that purchases products directly and / or services to a company, to sell to third parties and thus profit. It does not have a working relationship with the Companies.
    • Product: Any movable or immovable, tangible or intangible, or national origin.
    • Recruitment: Any activity leading to induce a person to become independent entrepreneurs.
    • Service: Any business of providing services that are offered in the market, including those of banking, financial, credit, insurance, pension and professional and technical services. Does not include services provided by persons as a dependent.
    • Direct Sales: The marketing of products and / or services that an independent entrepreneur made directly to consumers in their homes, workplaces or other spaces, for which usually provides information about the products and / or services and performs demonstrations.

Do not is understood as direct sales which are effected in retail establishments selling open to the public by performing in a minority sale or wholesale, permanent or temporary

1.3 Self-regulation

The Code of Ethics is a form of self-regulation of the Direct Selling industry itself. Do not is a law and their obligations may require a level of ethical conduct that exceeds existing legal requirements. Non-compliance does not create any legal liability civil, administrative, and criminal or any kind.
Once a partner is no longer part of CAPEVEDI, is no longer bound by this Code, but by events and transactions that occurred during the time he was a member of the House.

1.4 Law

Companies and Independent Entrepreneurs are presumed obligated to comply with the legal provisions of the country and therefore the Code does not remove existing legal obligations.

1.5 Of the required to comply with the Code:

1.5.1 Company

Each member company is committed to complying to CAPEVEDI about this Code as a condition of admission and stay as a member of the House.

1.5.2 Independent Entrepreneurs

Independent Entrepreneurs are not bound directly from the Code. However, the Company may require the same compliance as a condition for membership of the distribution of such companies.

1.6 Standards

The Code provides ethical behavior apply equally to the Companies and Independent Business Owners. CAPEVEDI may vary these standards so long as the spirit of the Code is preserved. It is recommended that the Code be used as evidence of industry standards.

2. Code of Business Ethics to Independent Entrepreneurs

2.1 Adhesion of Independent Entrepreneurs

Companies require their independent entrepreneurs, as a condition for membership in its sales organization, adhere to this Code or the rules of ethics to comply with its principles.

2.2 Recruitment

Business and Independent Entrepreneurs should not use unfair practices and / or deceptive recruiting.

2.3 Business Information

The information should be provided the Company to its independent entrepreneurs and potential independent entrepreneurs concerning the business opportunity and respect the rights and obligations must be accurate and complete. Companies shall not give false expectations in the recruitment or make promises that can not be met. Companies do not present the advantages of the sales opportunity to potential recruits in a false or misleading.

2.4 Information on profits

The company did not provide false information or gain on the sale of their current or potential independent entrepreneurs. Any gain or sale to try to show must be made on documented facts.

2.5 Agreement

Companies give to their independent entrepreneur a written agreement to be signed by the Company and the independent entrepreneur, containing all the essential details of the business relationship between them.

2.6 Payment

Companies and independent contractors will not ask other independent entrepreneurs unreasonable to assume financial obligations such as payments for admission, pay for workshops, franchisees pay, pay for promotional materials or other payments relating only to the right to participate in the business.

2.7 Termination Policy

At the end of Independent Business trade relationship with the Company, in case the Independent Business has acquired an inventory unreasonable for reasons attributable to the Company, each company according to their internal policies may buy unsold products to be marketable (that are in perfect condition and in its original container well sealed), provided they are returned within the established returns for each company, including promotional material, sales aids and demonstrators, and Independent Business credit the original net cost less a charge to the 10% of net purchase, less any benefit received by the Independent Business based on the original purchase of the returned products.

2.8 Stock

The direct selling companies held liable for failing to require them to buy Independent Business inventories of products in large quantities and unreasonable. This will seek to determine the appropriate amount of their inventory, listing them based on the reality of sales, competitive nature of the products, the market environment, and return policies and reimbursement of companies

2.9 Information

The direct selling companies held liable for not requiring them to buy Independent Business inventories of products in large quantities and unreasonable. This will seek to determine the appropriate amount of their inventory, listing them based on the reality of sales, competitive nature of the products, the market environment, and return policies and reimbursement of companies

2.10 Workshops and / or informative talks

Companies will offer workshops and / or information sessions to help Independent Business Owners to operate ethically.

3. Code of Ethics between the Companies

3.1 Principles

CAPEVEDI member companies must conduct ethically and legally to the other members.

3.2 Unfair Attraction

Companies will not try to unfairly attract one another Company Independent Entrepreneur.

3.3 Defamation

Companies should not defame products, business plans or any other item from another company.

3.4 Code Observance

3.4.1 Responsibility of companies

The first responsibility for the enforcement of in this Code lies with each company individually. In case of any breach of this Code, the Companies will make every effort to satisfy the claims.

3.4.2 Responsibility of CAPEVEDI

CAPEVEDI designate a person responsible for handling the claims and will make every effort to solve them.

3.4.3 Code Administrator

CAPEVEDI appoint an independent person or body as Code Administrator. The Administrator shall monitor the observance of this Code to do the business. The Administrator shall decide any matter based on the breach of this Code.

3.4.4 Actions

The actions that the Code Administrator determines to apply to a company with reference to claims for breach of the Code may include termination of business relationship between the Independent Entrepreneur and the Company, notice of warning to the Company or its independent entrepreneurs or other actions appropriate and the publication of these actions and sanctions.

3.4.5 Claim Management

Companies, CAPEVEDI and Code Administrator shall establish procedures for the proper care claims related to breach of this Code and ensure that their reception is confirmed in a short time and the decisions related to their solution are taken within a reasonable period. The attention of the claims will be free.

3.4.6 Claims of the Companies

The claims of a company against another company for infringement of this Code shall be resolved by the Code Administrator. CAPEVEDI define the details of their own procedures.

3.4.7 Publishing

CAPEVEDI publish the Code and will know how wide as possible. The publications will be distributed free.

4. Code of Ethics of Companies to Consumer

4.1 Scope

The Code of Ethics to CAPEVEDI Consumers (hereinafter the Code) is published by the Chamber to direct selling companies members of the same (collectively the Companies). Understand the relationship between the Companies and Independent Business on the one hand and consumers on the other. The Code aims at the protection and consumer satisfaction, promoting honest competition in the context of free trade and the spread of the public image of Direct Selling.

4.2 Glossary of Terms

For purposes of in this Code, the terms used have the following meaning:

    • Administrator Code of Ethics: Independent person or body appointed by CAPEVEDI to observe compliance with the Code of Ethics for its Companies and settle claims arising from breach of the same.
    • Customer: Natural or legal person acquires, uses or enjoys as an end user products or services and intangible, for personal gain or their family or social group, thus acting in an area outside a business or professional activity. Consumer not considered for purposes of this Code who acquires, uses or enjoys a product or service normally intended for the purposes of its business as a supplier. The entrepreneur that evidences a situation of information asymmetry with the supplier in respect of products or services that are not part of the turn of the business itself, in case of doubt about the final destination of a given product or service qualifies as a consumer who acquires, use or enjoy.
    • Company: Legally established legal person who uses the direct selling system to market products and / or services associated with CAPEVEDI and identified as one of its members with the logo identificatory it.
    • Independent Entrepreneur: Natural or legal person that purchases products directly and / or services to a company, to sell to third parties and thus profit. It does not have any employment relationship with the Companies.
    • Product: Any movable or immovable, tangible or intangible, national origin or not.
    • Recruitment: Any activity leading to induce a person to become independent entrepreneurs.
    • Service: Any business of providing services that are offered in the market, including those of banking, financial, credit, insurance, pension and professional and technical services. Does not include services provided as a dependent people.
    • Direct Sales: Is the marketing of products and / or services that an independent entrepreneur made directly to consumers in their homes, workplaces or other spaces, for which usually provides information about the products and / or services and demonstrate.

            Do not understood as direct sales that effected in outlets, open to the public by performing in a minority sale or wholesale, permanent or temporary.

4.3 Self-regulación

The Code of Ethics is a form of self-regulation of the Direct Selling industry itself. Do not is a law and their obligations may require a level of ethical conduct that exceeds existing legal requirements. Non-compliance does not create any legal liability civil, administrative, and criminal or any kind.

Once a partner is no longer part of CAPEVEDI, is no longer bound by this Code, but by events and transactions that occurred during the time he was a member of the House.

4.4 Law

Companies and Independent Business Owners are presumed obligated to comply with the legal provisions of the country and therefore the Code does not remove existing legal obligations.

4.5 Of the required to comply with the Code:

4.5.1 Company

Each member company is committed to complying CAPEVEDI in this Code as a condition of admission and stay as a member of the Chamber.

4.5.2 Independent Entrepreneurs

Independent Entrepreneurs are not obligated directly by the Code. But if the Company requests the same compliance, as a condition for membership of the distribution of such companies, they must to comply.

4.6 Standards

The Code provides ethical behavior which applies equally to the Companies and Independent Entrepreneurs CAPEVEDI may vary these standards so long as the spirit of the Code is preserved. It is recommended that the Code be used as evidence of the industry standards.

4.7 Prohibited Practices

Independent Entrepreneurs shall not use unfair practices and / or misleading.

4.8 Identification

Since the beginning of the presentation of Independent Entrepreneurs sales made, shall, if not requested to do so, to reliably identify the potential consumer and must also identify the company, its products and purpose of the visit. On sale for meetings, Independent Business clearly defines the purpose of meeting the hosts and the participants of the same.

4.9 Explanation and Demonstration

The explanation and demonstration of the product offered must be accurate and complete, in particular with reference to the price and if applicable, the cost of credit, payment terms, a period of repentance and right of return, warranty and service terms after the sale, and delivery.

4.10 Answers to questions

Independent Entrepreneurs must provide accurate and understandable answers to all questions from consumers concerning the product and supply.

4.11 Sales Order Form

A written form shall be delivered to the Independent Entrepreneur which will identify that and the company, which will contain the full name, address, telephone number of the Company and Independent Entrepreneur and the conditions of sale. All terminology must be clearly legible.

4.12 Verbal promises

Independent Entrepreneurs will only make verbal promises that are authorized by the Companies with respect to the products they sell or services they promote.

4.13 Period of reflection and product returns

The Independent companies and entrepreneurs should ensure that any form contains, be it a legal requirement or not, a clause reflection period allowing the consumer to desist from his purchase within a specified period of time and to get a refund if payment was. Companies and entrepreneurs that offer an unconditional right of return must do so in writing.
CAPEVEDI agree that the consumer is entitled to restitution, exercisable within a period of 7 calendar days from the date on which the contract for the product produced or service from the day of receipt or initiation of execution, which occurs after.

4.14 Warranty and After Sales Service

The conditions of the warranty details and limitations of post-sale service, the name and address of the guarantor, the duration of the warranty must be clearly explained in the form or accompanying literature or provided with the product.

4.15 Literature

The promotional literature, publicity or mailings will not contain any product description, claims or illustrations that are unclear or uncertain and contain the full name, phone number and / or management of the Company.

4.16 Testimonials

Independent companies and entrepreneurs will not refer to any testimony that is not true, is obsolete or otherwise inapplicable, unrelated to their offer or used in ways that would confuse the consumer.

4.17 Comparison and defamation

Independent entrepreneurs and companies will refrain from using comparisons which may confuse and / or which are incompatible with the principles of competition. Points of comparison should not be unfairly selected and should be based on demonstrable facts. Independent companies and entrepreneurs should not defame any company, a product directly or implicitly. Independent companies and entrepreneurs should not unfairly use the mark or symbol of another company or product.

4.18 Respect for privacy

Personal or telephone contacts will be made during reasonable hours to avoid interference to privacy. An independent contractor must immediately discontinue a demonstration if required by the consumer.

4.19 Loyalty - Honesty

Independent Entrepreneurs will not abuse the trust of individual consumers, shall respect the lack of commercial experience of them and not exploit the advanced age of these, his illness, lack of understanding or ignorance of the language.

4.20 Sales by reference

Independent Entrepreneurs and Companies will not induce consumers to buy products or services based on the promise that consumers can reduce or recover the purchase price by the fact that references to potential customers for similar purchases if the discount or recovery of money is based on an uncertain future event.

4.21 Deliver

The Company shall ensure that the products ordered by Independent Entrepreneurs are delivered properly in the agreed time.

4.22 Code Observance

4.22.1 Responsibility of companies

The first responsibility for the enforcement of in this Code lies with each company. In case of any violation of the Code, the Companies will make every effort to satisfy the claim.

4.22.2 Responsibility of CAPEVEDI

CAPEVEDI designate a person responsible for handling the claims and absolve, which shall make a reasonable effort to resolve the raised claims.

4.22.3 Code Administrator

Independent person or body appointed by CAPEVEDI to observe compliance with the Code of Ethics for its business and settle claims arising from the breach of it.

4.23 Actions

The actions to be implemented by the Companies, CAPEVEDI or the Code Administrator may include cancellations of orders, product returns, return of payment or other appropriate actions, including warning signs Independent Business, termination of business relationship Independent Entrepreneurs with the Company, notice of warning to the companies, excluding companies like CAPEVEDI members and the publication of the actions undertaken and decides to apply sanctions.

4.24 Claim Management

The companies, and the Code Administrator CAPEVEDI Will Establish the Code establish procedures for the proper care and claims that these are addressed in the near future and the decisions in relation to their solution are taken within a reasonable time. The attention of the consumer complaints will be free.

4.25 Publication

CAPEVEDI, Companies and Independent Entrepreneurs released this code and they will know how wide as possible. The publications are distributed free.

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