Compliance with National Field Selling Association’s (NFSA) Code of Ethics (“the Code”) is an obligation of all members and is a condition of continuing membership in the Association. The Code is set forth below followed by comments pertaining to the scope of each section. In the spirit of administering the Code, members agree to be responsible for Code compliance by their employees, including their independent sales organizations and sales agents, and those persons who supervise or assist those authorized to sell member products and/or services.

1.     SALES OPPORTUNITY OFFERS

This section involves the recruitment of individuals, whether as employees or independent contractors, especially those persons who will have direct contact with prospective purchasers. It includes the process of selecting individuals to sell or assist others in the sale of member’s products/services to the general public.

1. Sales Opportunity Offers: No member shall engage in any deceptive or unlawful recruiting practice. Sales opportunity offers shall not contain any false statement or misleading representation, nor shall the member responding to any inquiry about a sales opportunity offer make any false or deceptive statement or claim about the offer.

COMMENT: This provision contemplates sales opportunity offers in media advertisements (newspapers, television, radio) and in offers made over the internet or by word of mouth. For example, the offer should not indicate salaried employment if the offer is intended to solicit independent contractor sales agents whose earnings are based on sales commissions.

2. Recruitment Interview: During the initial interview with persons responding to a sales opportunity offer, whether in person or by telephone, the person conducting the interview shall disclose the nature of the products and/or services to be sold, the manner in which sales are conducted, the basis on which compensation is calculated and paid, expenses that the person will expected to pay, and any other information pertinent to the offer.

COMMENT: Prospective sales persons must be provided with a complete explanation of the products and/or services they will be offering for sale (e.g. magazine subscriptions, household cleaning products), the method in which sales are obtained (e.g. door-to-door sales), the manner in which compensation is calculated (salary, commission), and the type of expenses that the person will be expected to pay. If the initial interview takes place over the telephone the same information must be conveyed. It is NFSA’s policy that no one under age 18 should be recruited as a sales agent on a traveling sales crew.

3. Background Checks: Member must conduct criminal background checks on all employees and sales agents. During the recruitment interview the person being recruited must be advised that a background check will be made, that permission to conduct the background check must be provided by the person being recruited, and that affiliation with the organization is subject to passing a background check.

COMMENT: The recruiting organization must conduct a criminal background check on all employees and sales agents and should check all past employment references provided by the new recruit. In addition, it is necessary for the new recruit to grant written permission to conduct a background check, and the person should be advised that affiliation with the recruiting organization is subject to passing a criminal background check.

4. Travel: Prospective sales persons shall be informed of the nature and extent to which travel is involved (from/to point of origin), including the method used to transport persons to and from the geographic locations where sales are conducted.

COMMENT: Selling products and/or services door-to-door in several geographic areas requires substantial travels. Persons recruited as sales agents must be advised of the travel requirements and the method of travel involved.

5. Employee/Independent Contractor: Prospective sales persons shall be fully informed of their status as an employee or independent contractor. If an independent contractor, the relationship between the parties must be set forth in a written agreement. The agreement must be reviewed with the person before signing and the person must be given a signed copy of the agreement.

COMMENT: The member or recruiting organization shall inform employees of the nature of their duties and responsibilities. With respect to independent contractor sales agents, the relationship between the sales agent and member/recruiting organization must be set forth in writing and reviewed with the sales agent prior to signing the agreement. The sales agent must receive a copy of the signed agreement.

II. SALES SOLICITATIONS

This section involves sales offers to prospective purchasers and the importance of courtesy and honesty in presenting the offer. It includes responding to purchaser inquiries both during and after the sale.

1. Sales Promotion Material: Advertising and promotional material should contain an accurate description of the products or services offered for sale. Illustrations, charts and/or product claims should be accurate at the time of the promotion.

COMMENT: Advertising and promotional material used in conjunction with the sales presentation such as product brochures, photographs, illustrations, charts and graphics, should reflect accurate portrayals of the subject they represent.

2. Sales Contacts: Do not make false, deceptive or misleading statements or representation to prospective purchasers about any aspects of the sale. All products and services offered for sale shall be explained clearly and accurately to avoid misunderstanding of the nature of the offer or the terms of purchase.

COMMENT: Do not make any statements that misrepresent the purpose of the call, or the products being offered for sale. Sales presentations must be truthful and the product or service explained in a clear and accurate manner to avoid any misunderstanding. No sales presentation shall contain any reference to the sales person being affiliated with any charitable organization or school group or that the products/services will or can be donated to schools, hospitals, military personnel or charitable organizations unless such representation is in fact true and can be documented.

3. Sales Agreement: At the time the sale is completed, a written agreement or receipt must be given to the purchaser (along with any warranty or guarantee) which shall contain all terms and conditions of the sales including disclosures required by law.

COMMENT: At the time the sale is completed, the purchaser must be given a copy of the written sales agreement containing a description of the item(s) purchased, the terms of the purchase, and any cancellation rights in the manner and form required by law. Always review the purchase agreement with each purchaser before signing.

4. Delivery of Products Purchased: Do not misrepresent or understate the time period in which purchasers can expect delivery of the products or services purchased. If products cannot be provided at the time of sale, the purchaser should be advised as to when to expect delivery.

COMMENT: If the product cannot be delivered at the time of sale the purchaser should be informed of when to expect delivery. For example, magazine subscriptions orders require clearance with publishers and some publishers take longer to start than others. If first issues cannot be delivered within 30 days, the purchaser should be advised of the expected time for delivery of first issues and the estimated time should be disclosed on the written sales agreement, e.g. “Allow 90 to 120 days to Receive First Issues.”

5. Sales Conduct: Prospective purchasers must be treated with courtesy and respect at all times.  Sales agents must respect the prospective purchaser’s right to privacy and must honor a “No Solicitors” sign or sign/notice of similar import.

COMMENT: A show of enthusiasm in conveying the sales offer and a friendly attitude will hold you in good stead, even if a sale is not made. If the prospective purchaser is not interested in the offer do not engage in aggressive sales behavior or make rude or inappropriate remarks.