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Annual General Meeting 2013

To be held at:

Lawrence Graham Solicitors4 More London Riverside

London SE1 2AU

Thursday 21st November 2013

DSA - 2013 AGM Booklet.indd 1 04/11/2013 14:14

Vision Statement“To create a meaningful image of our Association, credibility and delivery in support of all our members and external opinion formers.”

Contents3 2013 Notice of Annual General Meeting

4 Governance and Membership

5 Chairman’s Report

6 Director’s Report

8 Code Administrator’s Report

10 Financial Statement

14 History of the DSA

15 List of Members

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2013 Notice of Annual General MeetingNOTICE IS HEREBY GIVEN that the 47th ANNUAL GENERAL MEETING (“AGM”) of THE DIRECT SELLING

ASSOCIATION will be held at 12.00 midday, on Thursday 21st November 2013 at the offices of

LG (Lawrence Graham) Solicitors, 4 More London Riverside, London SE1 2AU for the following purposes:-

Agenda

1. To receive the Chairman’s report.

2. To receive and adopt the Report and Accounts for the year ended 30th June 2013.

3. To elect Council Members.

4. To re-appoint auditors to the company and authorise the Directors to fix their remuneration.

5. To approve changes to the DSA Code of Practice for Consumers to reflect changes resulting from the

implementation of the Consumer Rights Directive.

6. To consider any other business.

Dated 30th October 2013

By Order of the Council

PAUL SOUTHWORTH

Director General

Election to Council

1. Under the DSA Constitution, one third of Council retires annually by rotation. This year Bob Parker,

Mimi Bogelund and Chris Fenna are due to rotate but all offer themselves for re-election which

Council recommends.

Also this year Ric Hobby, Jamie Stewart, Scott Schlackman, Shaun Charity and Tony Chaplin

resigned from Council and were replaced by Gavin Aley, Andrea Slater, Vicky Beckett, Lisa Burke and

Ben Woodward.

2. Under the DSA Constitution, the Chairman shall be elected each year. Andy Smith has been the Chairman

for the last year and offers himself for re-election. Council recommends this re-election.

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2013 Direct Selling AssociationGovernance and Membership 2013

Governance

The Council is elected annually by members to control and manage the business and affairs of the Association.

It is comprised of a Chairman, a Vice-Chairman and not more than 15 members. The Board is assisted in

its role through the appointment and delegation of authority to the Director General and the contribution

of member advisory committees. The Board adopts modern governance standards in its contribution to

Association business.

Council Members and Advisors

Andy Smith Amway (UK) Limited Chairman

Bob Parker Forever Living Products (UK) Limited Vice Chairman

Chris Fenna The Pampered Chef (UK) Limited

Gavin Aley Herbalife Europe Limited

Mimi Bogelund Captain Tortue Group

Andrea Slater Avon

Clive Norton Cambridge Weight Plan

Eric McClenaghan Oriflame

Mike Roberts Mary Kay Cosmetics

Vicky Beckett Arbonne

Lisa Burke Kleeneze

Penny Farish Morinda

Simon Burke EllaPure

Ben Woodward Nikken

Paul Southworth Director General, DSA

Lynda Mills Deputy Director, DSA (non-voting)

Marinda Chaplin VideoPlus Europe Supplier Chairman (non-voting)

Advisors

Joanne Stevens Treasurer

Paul Dobson Independent Code Administrator

Legal Affairs Committee

Paul Dobson Chairman

Claudine Olney Secretary Forever Living Products

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2013 Direct Selling AssociationChairman’s Report

When I was elected as your Chairman twelve months ago, I have to confess I was not totally aware of the task

ahead, however I can honestly say I have enjoyed the added involvement and commitment as it has been an

honour to serve you in this capacity.

2012/2013 has again been a challenging year but thankfully we see the economic recovery from recession

finally gathering pace.

Despite these challenges it continues to be a great source of satisfaction that our industry goes from

strength to strength as we see recruitment, sales and customer levels growing along with the overall profile

of direct selling.

Our PR strategy continues to be effective with increased media coverage. The website brings increased

volume of traffic along with our social media network through Linked In, Facebook and Twitter.

We received great feedback from our seminars and annual conference and have achieved the many objectives

we set ourselves for the year.

I would like to welcome our new Members and Supplier Members who joined us during the year and

add my thanks for the support I have received from the Council Members old and new, who continue to give

their time and commitment in representing you on Council.

Finally, I would also like to thank your great DSA team of Paul, Lynda, Chris and Ian who along with Paul Dobson,

Joanne Stevens and Ashley Riley make it possible for our Association to thrive and prosper, whilst remaining

financially sound, we owe them our thanks and appreciation.

I wish each and every one of you every possible success for the year ahead.

Andy SmithDSA Chairman


2013 Direct Selling AssociationDirector’s Report

During the last year I am pleased to report further success and progress for our industry and the Association. Apart from maintaining a sound financial position, as you will see from the accounts section within this report, we have raised the bar in terms of our profile, PR activity, lobbying and general delivery of services and support.In addition to the contribution from our Member Companies and Suppliers, this has been made possible by the committed efforts of my team here at the DSA office. Lynda and Chris along with the two new members of the team, Ian and Ashley, plus the support of our Code Administrator Paul Dobson and Treasurer Joanne Stevens, have worked tirelessly on your behalf to ensure added value to membership and continuous progress. I am truly proud of them all.

Highlights of the year

DSAIThis year saw us pick up the mantle of the management of the Direct Selling Association of Ireland. Gavin Aley became the Chair and Lynda was appointed as Director. The additional focus and support has had an immediate effect with membership growing for the first time in years and DSAI has now fulfilled full membership status in WFDSA. Also a very successful Annual Awards Dinner was held in Dublin on November 7th 2013.

Annual Conference/Seminars Our own Annual Conference and Awards Dinner was held in May and voted by many as the ‘best ever’. The winning formula of good business content, fun, information, popular award winners and great evening entertainment is certainly one we intend to repeat next year.

The Conference Committee are already organising the event which will take place on Thursday May 15th at Whittlebury Hall, Northampton (make a date in your diary now). More details will be released shortly.

In addition to the Conference our Seminar series continues to be popular and throughout the year our topics included Social Media, HMRC, eBay, Destination Management, Incentives, and Legal. The round table discussion format has proven to be a great way of sharing and learning.

Public RelationsTogether working closely with our PR Agency CubanEight, we continued to increase our media coverage with strong positive articles about our industry and the opportunities it provides. To this we have added some great case studies provided by the virtual PR group based in our Member Companies who do a great job in supplying their individual success stories.

As a result we can accurately measure an up-lift in our profile with both journalists and opinion formers.

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Website/Social MediaAshley Riley added impetus to the team with ever increasing exposure through our website, Linked In, Facebook and Twitter activities. Our website now attracts over 10,000 visits per month and acts as the main portal for many seeking information on our industry and the companies within it, whilst many hundreds connect with us through other social media platforms.

LobbyingOur lobbying activities are constant and challenging, as we try to convince the government that we are the industry who actually deliver their agenda on a daily basis. Helping people back into the work place, creating entrepreneurs and micro businesses is what they say they want and it is what we do!!

We achieved a major breakthrough in September as we held a luncheon at the House of Commons hosted by the Shadow Minister for Small Businesses, who has committed to help us raise awareness of our economic and social contribution amongst Ministers.

GenY A new focus for us this year has been to attract more under 25s into our industry and results show our efforts with Universities and media outreach are delivering results, with 19% of our total direct sellers now falling into the under 25 group.

TrendsEmerging trends for the year.....29% increase in over 50s joining the industry26% increase in men25% increase in under 25s

Finally our objectives and activities for the coming year will be the continuance of our strategy and constantly striving to raise the bar. My thanks again to the great DSA team, the support we receive from the Council Members and to all our Members who contribute so much to the success of the DSA and our industry.

I wish you all every success for the year ahead.

Paul SouthworthDirector General

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2013 Direct Selling AssociationCode Administrator’s Report

The RoleA large part of my role is compliance related. It includes:

(i) Responding to requests from Members for advice on compliance issues;

(ii) Carrying out each year a number of compliance audits of Members and Prospective Members

(iii) Adjudicating on complaints which the DSA has been unable to get resolved;

(iv) Issuing compliance advice following applicable changes in the law;

(v) Chairing the DSA’s Legal Affairs Committee.

Written Advice and Guidance for DSA MembersMy notes of Advice for Members, on a wide range of legal and code issues, are obtainable from the Members’

area of the DSA website or direct from me. They include the following:

• Customer order forms

• Recruitment Advertisements

• Direct Seller Agreements

• Online sign-up

• Websites of companies and direct sellers

• Returns Policy - specimen sample

• Social Networking Media – specimen Advice for Direct Sellers

• No Cold Calling Zones – DSA Position paper

• Model UK Direct Seller Agreement (MLM)

• Outline of legal environment in UK for direct selling (useful to new start-ups and to overseas companies

looking to expand into the UK)

Also available in the Members’ area of the DSA website are:

• Annotated versions of the two DSA Codes (which contain extensive notes on legal and compliance issues)

The annotations to the two Codes are extensive, including amongst a lot of other matters:

• Specimen Guidance for direct sellers on booking an appointment for a visit to a consumer’s home and on

carrying out the visit.

• Specimen Guidance for direct sellers on safeguarding personal data of consumers and downlines.

• Notes on ‘poaching’ of direct sellers.

Written Guidance relating to the law after implementation of the CRDOn application to the Code Administrator, guidance sheets are available which relate to the position after the law

changes following implementation of the Consumer Rights Directive (expected June 2014). Those guidance sheets

deal with:

• Specimen Returns Policy.

• Direct Sellers acting as Consumers – Advice Note.

• Info to be given to consumer placing order online.

• Customer Order Forms – Guidance Sheet & specimen customer order form.

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The past yearMy full annual report for the year July 2012 to June 2013 will be available in the Members’ area of the DSA

website. Significant features of the past year have been:

• Completion of the compliance process by three prospective members which thus became full

members of the DSA.

• Closure at the end of March 2013 of the OFT Consumer Codes Approval Scheme. The DSA decided

not to transfer to the similar scheme operated by the Trading Standards Institute (the TSI), considering

that the costs outweighed the benefits.

• The repeated DSA responses to the UK government regarding implementation in the UK of the

Consumer Rights Directive (expected Dec 2013 to come into effect June 2014).

• Successful lobbying regarding the proposed EU Directive on ADR (Alternative Dispute Resolution),

which has resulted in a Directive with which the DSA expects to be able to comply when it is

implemented in the UK (expected 2015).

Extended legal rights of cancellation etcThe Consumer Rights Directive increases information-giving requirements. It also introduces longer cooling-off

periods for consumers. It applies to both direct selling (termed off-premises selling) and distance selling (e.g.

online) to consumers. The Directive will be implemented to come into effect in the UK with effect from June

2014. As a result, DSA member companies will need:

• To plan for the introduction of revised customer order forms;

• To review their returns policy in order to ensure compliance with the new rules.

• To review the information given to consumers placing orders online.

Advice will be circulated to DSA members early in 2014 on these issues. Advice leaflets on them are already

available on request to the Code Administrator.

Prospective Member companiesA new Member of the DSA will join initially as a “Prospective Member”. This status is intended to last, normally,

at least one year. In the case of some companies, however, it has already lasted several years. As stated

above, three companies made it to Full Member status during last year. I wish to encourage those companies

which have been Prospective Members for several years to engage with and complete my compliance audit

which is required before elevation to full membership. Most Prospective Members do not find it a demanding or

time consuming process.

• If you are a Prospective Member and we are not already in discussion, do please make contact with

me. With a little effort, progress is easy.

• If you have already engaged with the process, I can assure you that it normally does not take very much

time or effort to get the process completed.

Paul DobsonCode Administrator for the Direct Selling Association

[email protected]

November 2013

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10

2013 Direct Selling AssociationFinancial Statement

REGISTERED NUMBER: 0851537 (England and Wales)

Abbreviated Accounts for the year ended 30th June 2013

for The Direct Selling Association Limited

ACCOUNTANTS’ REPORT TO THE BOARD OF DIRECTORS ON THEUNAUDITED FINANCIAL STATEMENTS OF DIRECT SELLING ASSOCIATION LTD

YEAR ENDED 30th JUNE 2013

As described on the balance sheet, the directors of the company are responsible for the preparation of the

financial statements for the year ended 30th June 2013.

You consider that the company is exempt from an audit under the Companies Act 2006.

In accordance with your instructions we have compiled these unaudited financial statements in order

to assist you to fulfil your statutory responsibilities, from the accounting records and information and

explanations supplied to us.

Number Crunchers Accountants11, Cottesbrooke Park, Heartlands Business Park, Daventry, Northants. NN11 8YL


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Financial Statement continued...

The Direct Selling Association Limited

Balance Sheet

30th June 2013

2013 2012

£ £ £ £

FIXED ASSETSTangible assets 335 -

CURRENT ASSETSStocks 2,190 347

Debtors 55,256 59,586

Cash at bank and in hand 406,950 333,533

464,396 393,466

CREDITORSAmounts falling due within one year 123,038 58,256

NET CURRENT ASSETS 341,358 335,210

TOTAL ASSETS LESS CURRENT LIABILITIES 341,693 335,210

PROVISIONS FOR LIABILITIES 902 -

NET ASSETS 340,791 335,210

RESERVESProfit and loss account 340,791 335,210

340,791 335,210

The financial statements have been prepared in accordance with the special provisions of Part 15 of the

Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller

Entities (effective April 2008).


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Notes to the Abbreviated Accounts

for the year ended 30th June 2013

ACCOUNTING POLICIES

ACCOUNTING CONVENTIONThe financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).TURNOVERTurnover represents net invoiced sales of services, excluding value added tax.TANGIBLE FIxED ASSETSDepreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.Equipment - at varying rates on costSTOCKSStocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.DEFERRED TAxDeferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.PENSION COSTS AND OTHER POST-RETIREMENT BENEFITSThe company operates a defined contribution pension scheme. Contributions are payable in respect of one employee’s personal pension scheme. The annual contributions payable are charged to the profit and loss

account in the period to which they relate.

TANGIBLE FIXED ASSETS Equipment £COST At 1st July 2012 0

Additions 418 Disposals -

At 30th June 2013 418

DEPRECIATION At 1st July 2012 0 Charge for the year 83 On disposals -

At 30th June 2013 0

NET BOOK VALUEAt 30th June 2013 335

At 30th June 2012 0

SHARE CAPITALThe company is limited by guarantee and is a trade association for distributive trades. Each member has

undertaken to contribute £50 in the event of the winding up of the company.




Profit and Loss Account

for the year ended 30th June 2013

2013 2012

£ £ £ £

TURNOVER 343,231 331,820

Administrative expenses Establishment costs 16,392 16,965

Administrative expenses 345,236 323,838

Finance costs 419 139

Depreciation 83 2,856

362,130 343,798

(18,899) (11,978)

Other operating income 15,865 8,076

OPERATING LOSS (3,034) (3,902)

Finance income 8,615 5,625

PROFIT ON ORDINARY ACTIVITIESBEFORE TAXATION 5,581 1,723

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2013 Direct Selling AssociationA Brief History

Direct Selling Association • 1965 Founded with the name The Direct Sales & Service Association Ltd (DSSA) with an office in Slough.

Founder members: Avon Cosmetics, Beauty Counselors, Betterwear Products &

The Tupperware Company.

• 1966 Supplier membership introduced.

• 1967 Consumer Code introduced.

• 1968 DSSA became founder member of EDSF - the original name of FEDSA.

• 1979 OFT endorsed the DSSA code of practice.

• 1981 Name changed to Direct Selling Association and office moved to London.

• 2005 OFT Consumer Code Approval.

• 2010 Office moved to Northampton.

Previous DSA ChairmenDenis Moon Avon 1965

John Clifford Beauty Counselors 1970

David Peel Pippa Dee 1979

Jim Threlfall World Book 1981

Richard Berry Kleeneze 1983

Paul Southworth Avon 1985

Stewart Brodie Tupperware 1989

Deon Melck Tupperware 1990

Derek Snoxall Encyclopedia Brittanica 1993

Martin Williams Amway 1995

Ric Hobby Herbalife 1996

Sandy Mountford Avon 1998

Janet Hewitt Princess House 2000

Jerry McDonald Avon 2003

William Rollason Kleeneze 2006

Mike Ward Phoenix Trading 2007

Penny Farish Mary Kay 2008

Jamie Stewart Kleeneze 2010

Andy Smith Amway 2012

Direct Selling AssociationREGISTERED OFFICE ACCOUNTANTS SOLICITORS

Enterprise House Numbers Crunchers Accountants Lawrence Graham LLP

30 Billing Road 11, Cottesbrooke Park 4 More London Riverside

Northampton Heartlands London

NN1 5DQ Daventry SE1 2AU

Northants

NN11 8YL


15

ACN European Services Ltd

Amway (UK) Ltd

Aquasource (UK) Ltd

Arbonne UK

Avon Cosmetics Ltd

Cambridge Weight Plan

Captain Tortue Group

EllaPure Ltd

Energetix GmbH & Co

Enjo Ltd

Forever Living Products (UK) Ltd

GNLD International Ltd

Herbalife (UK) Ltd

Kleeneze Ltd

Phoenix Trading

Pro-Ma Systems UK

Reliv UK

Saladmaster

Sunrider Europe Inc

The Body Shop at Home

The Kirby Company

The Pampered Chef UK Ltd

Tiens Group

Truly Madly Baby

Tuttoluxo Ltd

Usborne Books at Home

VK Direct Ltd

Young Living (Europe)

Lifeplus Europe Ltd

Little Trove

Mannatech Ltd

Mary Kay Cosmetics (UK) Ltd

Miglio Company Ltd

Morinda

Nature’s Sunshine Products Inc

NSA (IR.BE.NL.UK) Ltd

Neways International (UK) Ltd

Nikken UK Ltd

Nuskin UK & Ireland

NYR Organic

Oriflame (UK) Ltd

PartyLite UK Ltd

Full Members

Barefoot Books

Carbon Central Network

Dalton & Dalton Tax Consultants Ltd

Hug & Co

Leo

Stemtech

Usana Health Sciences Inc

Vemma

World Ventures Marketing LLC

MonaVie

MyShowcase Ltd

Organo Gold

Soft Paris Parties

Stella & Dot

Prospective Members

AssociatesAppco Group Ltd

Supplier MembersAble Label

Above Gem

Academy for Direct Sales Training

Acorn2Oak Ltd

Adapt Studios

Adelante Software

Bids Supplies Ltd

Brio Design & Print Management

Byedesign Technologies

Cheltenham Racecourse

Citrus 7

Citi-Post

Cue Media

Cygnus Associates

Definitive Events

Digital River World Payments

DMH Stallard LLP

DSL Accounting Ltd

EC Group

Experience Nottinghamshire

First Event

FourFront Ltd

Generator Systems Ltd

PSP Group

Pacifix Consultants Ltd

Pam Anthony Recruitment

Pan European Solutions

PGS Team Ltd

Primo Plc

Principal Global Events

Printwell (UK) Ltd

Run Print Run

SQR One Ltd

Strada Creative

Stream

Sum Up

TFI Group

The Black Tomato Agency

The Motivational Business Travel

Thomas Brown Recruitment

Towah Members Club

Uniqueworld Hotels & Resorts

VideoPlus Inc

Vista Events

Yarrington

Global Logistics Intelligence GmbH

GoBeyondVoice

Gower Ltd

GT Associates

Guanxi Global Direct Selling Ltd

Hunts Paper and Pixels

IMN

Insee Sp z.o.o

iZettle

JBP PR & Parliamentary Affairs

Jenkon

Judo Payments

Knill James

Knowledge is King

Lawrence Graham

Legaleyes

Marketing Innovations

Meridian MMi

Momentum Factor (Europe)

Multi-Social Media

PayPal

PRB Accountants LLP

Production Support Services


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