Navigating the Direct Selling Association (DSA) Code of Ethics

In the dynamic world of direct selling, maintaining ethical standards is paramount for building trust with the customers. The lending industry depends on the relationship between the customers and the DSAs to flourish their business and increase the advance book.

However, in every mode of operation, there is a code of conduct that works as a guiding principle and thus helps the business to maintain the proper outline to navigate the maze of being a DSA.

In this blog, we will delve into the Code of Ethics of a DSA and how the rules of the association and sellers need to implement strategies to get customers ethically.

  • Overview of the DSA Code of Ethics

In the intricate world of direct selling, the trade stands on high trust and on personal connections, which need to be cherished with the right product advocacy so that, in return, it helps the customers.

Purpose of the DSA Code of Ethics

The primary purpose of the DSA Code of Ethics is to set a framework that governs how the agents will operate with the customers. It aims to create a level playing field where the business individual needs to deal with honesty and fairness and respect both the choices of the customers and the products offered by the lending company.

For example, to prevent customers from mis selling, personal loan agents are trained to state only the correct financial products that the customers require. It prevents agents from making deceptive claims and lying about the product details, which can harm the direct selling industry.

Gaining Trust

One of the main motives of the DSA association is to gain the trust of the customers so that they can get repeat business. Once a DSA starts following the code of conduct, it starts to get credibility, which is quite essential in this field.

  • Core Principles of the DSA Association

The core principles of the DSA association are to understand the financial products by themselves and also, through that, train the DSA agents in the right way about those products and help the customers to get the right product from the DSA service.

It focuses on the truth in advertising and helps the organization build the business on truth. It focuses on the market and checks the employees whether or not they are developing a pyramid scheme outside of the industry, which is banned from international markets.

Each principle helps to maintain the integrity of the system. Through that, one can start doing the job as a DSA by having a handbook that guides the individual about their way of operation and dealing with the customers.

  • Consumer Protection and Satisfaction

To maintain fairness in the market, a government provides a plan that helps individuals buy genuine products and creates a center where consumers can complain if they are being misrepresented.

Here comes the DSA association, which also understands the norms of consumer protection and how it can affect the business. The main aspect of being a DSA agent stands on being a trustworthy individual who can understand the needs of the customers.

In those scenarios, it’s quite obvious a business will restrict itself from selling those products, which doesn’t solve a customer problem, but it claims. Hence comes the ethical standard, which has now become the golden principle of business.

An NBFC DSA registration helps a DSA sell those products that customers require; hence, it is quite a norm for a DSA partner to tie up with multiple banking operators so that they can increase the product offerings to the customers.

  • Other Obligations and Compliance Standards

There is a concept of fair compensation that needs to be maintained in the association so that every DSA agent gets the right ratio of commission and ensures that they get fair representation in the association.

Through these standards, one needs to go through certain training to maintain the moral ethics of the industry and flourish as a DSA partner.