Following Direct Selling Association updates and industry self-regulation helps anyone in direct selling understand the rules behind the headlines. The DSA is the main US trade association for the industry, and its Code of Ethics sets standards for member companies on earnings claims, product claims, recruiting and refunds. Self-regulation also includes independent review of advertising claims. This explainer covers what the DSA does, how the code works, where it stops and how to use it when you evaluate a company.

What the DSA Is

The Direct Selling Association is a trade group representing direct selling companies. It lobbies, publishes industry data and administers a Code of Ethics that members agree to follow. Its 2025 fact sheet reports $34.2 billion in US retail sales, about 5.2 million sellers, of whom roughly 4.8 million were part-time, and 34.8 million customers. See DSA growth and outlook for analysis of those figures.

What the Code of Ethics Covers

The code addresses how companies describe earnings, how they treat product claims, what they tell recruits, and how they handle returns and refunds. It also includes provisions on buyback policies for unsold inventory, which many members commit to honor. Read the code on the DSA site and compare it to what a representative tells you. Our MLM buyback policies guide explains how buybacks work in practice.

How Self-Regulation Works

Beyond the code, the industry uses independent review. The Direct Selling Self-Regulatory Council, administered by BBB National Programs, reviews advertising claims by direct selling companies and their sellers and can refer cases to regulators if companies do not comply. This kind of oversight gives sellers and consumers another place to look for information about claims in the marketplace.

Where Self-Regulation Stops

A trade association’s code is not law. Government agencies such as the FTC and state attorneys general enforce consumer protection law, and they do so regardless of DSA membership. In 2026 the FTC and Washington state secured a $225 million order against Amway and two affiliates, and the FTC announced an order against Forever Living in April. Those cases show that regulators take action when they believe claims are deceptive. See the Amway FTC settlement.

Why It Matters to Independent Representatives

If your company is a DSA member, the code gives you a reference to hold your sponsor and your company to. Ask for the buyback policy in writing, and avoid making any claims the code would prohibit. If your company is not a member, ask why and look for equivalent protections. Check the DSA member list and read how to choose a network marketing company for a full due diligence checklist.

Where to Find Official Updates

Read the DSA’s own site for code changes and statistics, BBB National Programs for advertising decisions, and the FTC’s press release page for enforcement. For monthly summaries of verified developments, see our direct selling news roundup. Treat social media posts about new rules with caution unless they link to an official document.

How to Use This Knowledge

Before you join, check whether the company is a DSA member, read the code, request the income disclosure and the buyback policy and search regulator records. While you are a seller, follow the code in your own marketing, keep records and stay informed. After any problem, document everything and, if needed, contact the company, the BBB program or your state attorney general.

Questions Worth Asking About Any Self-Regulatory Claim

When a company says it follows an industry code, ask which code, which version and who checks compliance. Ask how complaints are handled and whether decisions are public. Ask what remedy a seller or customer can expect and how long the process takes. Look for examples of companies that changed practices after a review. These questions turn a vague assurance into something you can evaluate, and they protect you from marketing language that borrows the credibility of an association without delivering any practical protection.

Why Transparency Is Rising

Pressure from regulators, journalists and sellers themselves has pushed the industry toward more disclosure: income disclosure statements, clearer buyback terms and compliance training. Court orders such as the Amway settlement include specific changes to what a company must tell recruits. Whether you are an executive or a new representative, the direction is the same: plain information and substantiated claims. Companies and sellers that adopt this approach early are better placed to keep customers’ trust and avoid enforcement problems later.

A Note on Limits

Membership and codes are a useful screen, not proof. Always make your own assessment, read the plan and look at independent data such as income disclosure statements. Results vary and most participants earn modest amounts.

Key Takeaways

• The DSA sets a voluntary Code of Ethics for members.
• Independent review of advertising claims exists.
• The code is not law; FTC and states enforce the law.
• Use the code as a checklist.
• Verify with primary sources.

Frequently Asked Questions

Is DSA membership a guarantee of legitimacy?

No. It is a positive signal, but verify the plan, disclosures and regulator records.

What is the DSSRC?

An independent self-regulatory program that reviews advertising claims in direct selling, run by BBB National Programs.

Can I report a problem?

Yes, to the company, the BBB program, your state attorney general or the FTC.

Does the code require buybacks?

It includes provisions on repurchasing inventory; read the current code for specifics.

Sources

• DSA: Code of Ethics
• DSA: Direct Selling in the United States, 2025 fact sheet
• BBB National Programs (Direct Selling Self-Regulatory Council)
• FTC: Business Guidance Concerning Multi-Level Marketing
• Npros News: Judge enters Amway $225 million FTC settlement (Oct 13, 2026)

QastMe does not endorse any company. Information is for education only and is not financial or legal advice. Earnings in direct selling vary widely, and most participants earn little or no money. Review each company’s income disclosure statement before deciding.

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