Annual General Meeting 2013

To be held at: Lawrence Graham Solicitors 4 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.”

Contents

3 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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DSA - 2013 AGM Booklet.indd 2 04/11/2013 14:14 2013 Notice of Annual General Meeting

NOTICE 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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DSA - 2013 AGM Booklet.indd 3 04/11/2013 14:14 2013 Direct Selling Association Governance 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 (UK) Limited Chairman Bob Parker (UK) Limited Vice Chairman Chris Fenna The (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 Cosmetics Vicky Beckett Arbonne Lisa Burke 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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DSA - 2013 AGM Booklet.indd 4 04/11/2013 14:14 2013 Direct Selling Association Chairman’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 Smith DSA Chairman

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DSA - 2013 AGM Booklet.indd 5 04/11/2013 14:14 2013 Direct Selling Association Director’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

DSAI This 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 Relations Together 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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DSA - 2013 AGM Booklet.indd 6 04/11/2013 14:14 Website/Social Media Ashley 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.

Lobbying Our 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.

Trends Emerging trends for the year..... 29% increase in over 50s joining the industry 26% increase in men 25% 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 Southworth Director General

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DSA - 2013 AGM Booklet.indd 7 04/11/2013 14:14 2013 Direct Selling Association Code Administrator’s Report

The Role A 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 Members My 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 CRD On 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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DSA - 2013 AGM Booklet.indd 8 04/11/2013 14:14 The past year My 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 etc The 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 companies A 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 Dobson Code Administrator for the Direct Selling Association [email protected] November 2013

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DSA - 2013 AGM Booklet.indd 9 04/11/2013 14:14 2013 Direct Selling Association Financial 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 THE UNAUDITED 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 Accountants 11, Cottesbrooke Park, Heartlands Business Park, Daventry, Northants. NN11 8YL

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DSA - 2013 AGM Booklet.indd 10 04/11/2013 14:14 Financial Statement continued...

The Direct Selling Association Limited Balance Sheet 30th June 2013

2013 2012

£ £ £ £ FIXED ASSETS Tangible assets 335 -

CURRENT ASSETS Stocks 2,190 347 Debtors 55,256 59,586 Cash at bank and in hand 406,950 333,533

464,396 393,466

CREDITORS Amounts 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

RESERVES Profit 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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DSA - 2013 AGM Booklet.indd 11 04/11/2013 14:14 Financial Statement continued...

The Direct Selling Association Limited Notes to the Abbreviated Accounts for the year ended 30th June 2013

ACCOUNTING POLICIES

Accounting convention The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). Turnover Turnover represents net invoiced sales of services, excluding value added tax. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Equipment - at varying rates on cost Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Deferred tax Deferred 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 benefits The 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 VALUE At 30th June 2013 335

At 30th June 2012 0

SHARE CAPITAL The 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.

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DSA - 2013 AGM Booklet.indd 12 04/11/2013 14:14 Financial Statement continued...

The Direct Selling Association Limited 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 ACTIVITIES BEFORE TAXATION 5,581 1,723

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DSA - 2013 AGM Booklet.indd 13 04/11/2013 14:14 2013 Direct Selling Association A 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 Chairmen Denis 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 Association REGISTERED 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

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DSA - 2013 AGM Booklet.indd 14 04/11/2013 14:14 Full Members ACN European Services Ltd Lifeplus Europe Ltd Phoenix Trading Amway (UK) Ltd Little Trove Pro-Ma Systems UK Aquasource (UK) Ltd Ltd Reliv UK Arbonne UK Mary Kay Cosmetics (UK) Ltd Saladmaster Avon Cosmetics Ltd Miglio Company Ltd Europe Inc Cambridge Weight Plan Morinda The Body Shop at Home Captain Tortue Group Nature’s Sunshine Products Inc The Kirby Company EllaPure Ltd NSA (IR.BE.NL.UK) Ltd The Pampered Chef UK Ltd Energetix GmbH & Co Neways International (UK) Ltd Tiens Group Enjo Ltd Nikken UK Ltd Truly Madly Baby Forever Living Products (UK) Ltd Nuskin UK & Ireland Tuttoluxo Ltd GNLD International Ltd NYR Organic Usborne Books at Home Herbalife (UK) Ltd Oriflame (UK) Ltd VK Direct Ltd Kleeneze Ltd PartyLite UK Ltd (Europe) Prospective Members Barefoot Books MonaVie Stemtech Carbon Central Network MyShowcase Ltd Usana Health Sciences Inc Dalton & Dalton Tax Consultants Ltd Organo Gold Hug & Co Soft Paris Parties World Ventures Marketing LLC Leo Stella & Dot Associates Appco Group Ltd Supplier Members Able Label Global Logistics Intelligence GmbH PSP Group Above Gem GoBeyondVoice Pacifix Consultants Ltd Academy for Direct Sales Training Gower Ltd Pam Anthony Recruitment Acorn2Oak Ltd GT Associates Pan European Solutions Adapt Studios Guanxi Global Direct Selling Ltd PGS Team Ltd Adelante Software Hunts Paper and Pixels Primo Plc Bids Supplies Ltd IMN Principal Global Events Brio Design & Print Management Insee Sp z.o.o Printwell (UK) Ltd Byedesign Technologies iZettle Run Print Run Cheltenham Racecourse JBP PR & Parliamentary Affairs SQR One Ltd Citrus 7 Jenkon Strada Creative Citi-Post Judo Payments Stream Cue Media Knill James Sum Up Cygnus Associates Knowledge is King TFI Group Definitive Events Lawrence Graham The Black Tomato Agency Digital River World Payments Legaleyes The Motivational Business Travel DMH Stallard LLP Marketing Innovations Thomas Brown Recruitment DSL Accounting Ltd Meridian MMi Towah Members Club EC Group Momentum Factor (Europe) Uniqueworld Hotels & Resorts Experience Nottinghamshire Multi-Social Media VideoPlus Inc First Event PayPal Vista Events FourFront Ltd PRB Accountants LLP Yarrington Generator Systems Ltd Production Support Services

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DSA - 2013 AGM Booklet.indd 15 04/11/2013 14:14 ENTERPRISE HOUSE | 30 BILLING ROAD | NORTHAMPTON | NN1 5DQ T 01604 625700 | www.dsa.org.uk

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