Direct Sales System Under the Law on Consumer Protection of Türkiye
Authors: Atty. Ayça Berker & Atty. Deniz Nalbant
I. Introduction
Direct sales, a model frequently employed by multinational companies, is grounded in a specific marketing logic and is commonly used in the sale of products such as health items, cosmetics, personal care products, dietary supplements, and small household appliances.
In Türkiye, the direct sales industry goes beyond providing earnings to direct sellers, offering job opportunities to individuals across various fields. Examples of companies marketing imported products through direct sales in Türkiye include prominent brands such as Avon, Amway, Tupperware, Forever, and Oriflame. These companies are also members of the Direct Selling Association, established in 1994.
This article provides an overview of the direct sales system under Turkish law and explains through the newly introduced Article 47/A, to the Law on Consumer Protection No. 6502 (“CPL”), which will come into force on July 30, 2025.
II. Definition of Direct Sales
In the past, lengthy wait times during a sale and the involvement of multiple intermediaries led to low-cost products being sold to consumers at significantly higher prices. To address this issue, importers and manufacturers developed methods to deliver their products directly to consumers without intermediaries. One such method is the direct sales system.
According to the World Federation of Direct Selling Associations(“WFDSA”), direct sales is defined as the marketing of a consumer product or service directly to the consumer at their home, a friend’s home, their workplace, or another non-retail location, through a seller’s explanation or demonstration. The fundamental characteristics of direct sales, according to this definition, are the absence of a fixed sales environment and the face-to-face nature of the sales process.
Under Turkish law, the concept of direct sales was first introduced through the Regulation on Contracts Established Outside Business Premises, dated January 14, 2015. It has since been further refined under Article 47/A of the CPL, which will take effect on July 30, 2025.
The Regulation defines direct sales in Article 15 as:
“…a marketing system whereby a sales representative, distributor, or similar individual, whether employed by a direct sales company or not, offers goods or services to consumers in non-business premises such as their homes or places where they work or live, using single or multi-level sales methods, without utilizing retail outlets.”
Article 47/A of the CPL provides a similar definition, stating:
“(…) A direct sales system is a sales method established by a direct sales company where independent representatives, distributors, consultants, or individuals under similar titles who are not employed under an employment contract market goods or services to consumers in exchange for benefits such as commissions, bonuses, incentives, and rewards. (…)”
III. Innovations Introduced to the Concept of Direct Sales Through The Implementation of Article 47/A
Article 47/A of the CPL introduces comprehensive regulations on the direct sales system. These will enter into force on 30.07.2025 and include the following:
– Corporate Structure Requirement: Direct sales companies must be established as corporations and meet other conditions specified by regulations.
– Core Principle of Sales: The system must not primarily rely on recruiting new direct sellers or distributing benefits derived from such recruitment. Instead, it should focus on selling goods or services to consumers in accordance with other principles specified in the regulations.
– Prohibition of Financial Obligations: Direct sellers cannot be required to pay fees or incur obligations such as purchasing renewal packages, memberships, or similar items that do not include goods or services intended for sale to consumers. Furthermore, a direct seller’s status within the system cannot depend on purchasing specific amounts or values of goods or services as determined by the company.
– Consumer’s Right to Withdrawal: Consumers who purchase goods or services under the direct sales system are entitled to withdraw from the contract within 30 days without providing any justification or incurring any penalties.
– Consumer Protection Obligations: Direct sales companies are required to establish systems enabling consumers to obtain information on matters specified by the Ministry and to submit requests and notifications.
IV. Conclusion
As highlighted above, direct sales, a marketing method aimed at reducing costs and maximizing profits for multinational companies, is now subject to significant regulatory changes aimed at strengthening oversight and clarifying its structure. These changes, which are set to come into force on July 30, 2025, aim to establish a more robust framework for the implementation of direct sales systems. How these changes will be reflected in practice remains to be seen following their implementation.
If you would like to know more on this matter or require legal assistance, please contact Berker Berker Law Firm via info@berkerberker.com or any other contact information listed on our website.