Claims Of Health Benefits Unacceptable To Dsa

Claims Of Health Benefits Unacceptable To Dsa

The Direct Selling Association today has asked Direct Selling Company Mannatech to act urgently to reign in rouge distributors making misleading claims about the benefits of its product Ambertose.

"It is unacceptable and a clear breach of New Zealand law to make such claims" said Executive Director Garth Wyllie.

"The company is not a member of the New Zealand Direct Selling Association but does hold membership in both Australia and the USA with an obligation under those countries DSA Codes of Practice to act in an ethical and legal manner regardless of which market they are operating in. This includes actions of distributors or associates" said Mr Wyllie "Mannatech has been asked to act quickly to deal with the issue and if necessary to terminate the wayward distributors to stop the claims being made" he said.

"The New Zealand DSA has raised the issue with the Australian DSA and has brought it to the attention of the US DSA as we view the claims being made as a serious breach by some of Mannatechs New Zealand Distributors".

"I would anticipate that the company will act to deal with the misleading claims being made as it has shown an intention to comply with both the law and the DSA Code of practice internationally and I would expect no less in New Zealand" said Mr Wyllie!

The Direct Selling Association Code of Practice sets out a clear obligation for member companies to comply with the law and to act in a highly ethical manner. It sets out the manner that claims can be used in Direct Selling and the obligation that such claims must be able to be substantiated or they should not be made. It does not provide for therapeutic claims as this would be a breach of the Medicines Act and are not permitted.

The DSA in New Zealand takes compliance with both the law and its Code of Practice very seriously and acts to ensure Direct Selling companies and their distributor forces are aware of the need to comply.

The DSA is running a compliance workshop for Direct Selling companies on the 26th of March in Auckland which is open to both member companies and non member companies to help Direct Sellers understand and meet their obligations both in law and ethically. Details of the workshop are available from the DSA web site http://www.dsanz.co.nz

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