Direct selling companies face many challenges in today's fast-moving and competitive industry. As well as keeping on top of the changes in consumer behaviour that have taken place over the last few years, a key challenge to businesses is the changing legal landscape, in some cases resulting in products never actually making it to the market.
Nick Mallett, who is a specialist consultant at leading UK law firm, DMH Stallard, recently commented on the dramatic changes within the industry when he was interviewed by The World of Direct Selling.
"One of the key areas direct selling companies tend to stumble on is the legal ground. There have been a number of legal changes in the direct selling legal environment as regards to both what is sold and how it is sold. The progressive introduction of EU legislation, as well as the prohibition of the sale of certain products in some European member states can prevent products from ever reaching consumers."
"At the consumer protection end, there have been numerous EU initiatives aimed at harmonisation across the EU, and the EU is finally about to achieve a standard approach between "off-premises sales" (the new expression for what we call "direct selling" and "distance selling" (i.e. the internet etc)."
"The direct selling companies that will succeed in the future are those which understand and act on the legal changes and adapt and evolve their business accordingly."
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