Code of Ethics
(explanatory provisions appear in italics)
- Code of Conduct
- Responsibilities and Duties
1. Prompt Investigation and No Independent Contractor Defense
2. Required Publication - Administration
1. Interpretation and Execution
2. Code Administrator
3. Procedure - Regulations for Enforcement of DSA Code of Ethics
- Powers of the Administrator
1. Remedies
2. Case Closed
3. Refusal to Comply
4. Appeal for Reinstatement After Suspension or Termination - Restrictions
- Resignation
- Amendments
Preamble
The Direct Selling Association, recognizing that companies engaged in
direct selling assume certain responsibilities toward customers arising
out of the personal-contact method of distribution of their products and
services, hereby sets forth the basic fair and ethical principles and
practices to which member companies of the association will continue to
adhere in the conduct of their business.
1. Deceptive or Unlawful Consumer or Recruiting
Practices
No member company of the Association shall engage in any deceptive, unlawful
or unethical consumer or recruiting practice. Member companies shall ensure
that no statements, promises or testimonials are made which are likely
to mislead consumers or prospective salespeople.
1. Prior to 1993, the Code protected only the ultimate users or consumers of our products and services. The 1993 amendments extended protection to our independent sales representatives. The amendments were not intended to include "proselytizing" or sales force raiding disputes within the jurisdiction of the Code, except to the extent that such disputes involve allegations of deceptive, unlawful or unethical recruiting practices or behaviors aimed at potential salespeople. As used in this section, "unethical" means violative of the U.S. DSA Code of Ethics.
2. Products or Services
The offer of products or services for sale by member companies of the
Association shall be accurate and truthful as to price, grade, quality,
make, value, performance, quantity, currency of model and availability.
A consumer's order for products and services shall be fulfilled in a timely
manner.
3. Terms of Sale
A written order or receipt shall be delivered to the customer at the time
of sale, which sets forth in language that is clear and free of ambiguity:
a. All the terms and conditions of sale, with specification of the total amount the customer will be required to pay, including all interest, service charges and fees, and other costs and expenses as required by federal and state law;
b. The name and address of the salesperson or the member firm represented.
4. Warranties and Guarantees
The terms of any warranty or guarantee offered by the seller in connection
with the sale shall be furnished to the buyer in a manner that fully conforms
to federal and state warranty and guarantee laws and regulations. The
manufacturer, distributor and/or seller shall fully and promptly perform
in accordance with the terms of all warranties and guarantees offered
to consumers.
5. Identification and Privacy
Sellers shall truthfully identify themselves, their company, their products
and the purposes of their solicitation to the prospective customer. Contact
with the consumer shall be made in a reasonable manner and during reasonable
hours to avoid intrusiveness. A demonstration or sales presentation shall
discontinue upon the request of the consumer.
6. Pyramid Schemes
For the purpose of this Code, pyramid or endless chain schemes shall be
considered consumer transactions actionable under this Code. The Code
Administrator shall determine whether such pyramid or endless chain schemes
constitute a violation of this Code in accordance with applicable federal,
state and/or local law or regulation.
6. The definition of an "illegal pyramid" is based upon existing standards of law as reflected in In the matter of Amway, 93 FTC 618 (1979) and the anti-pyramid laws of Kentucky, Louisiana, Montana, Oklahoma, and Texas. In accordance with these laws, member companies shall remunerate direct sellers primarily on the basis of sales of products, including services, purchased by any person for actual use or consumption. Such remuneration may include compensation based on sales to individual direct sellers for their own actual use or consumption.
7. Inventory Purchases
a. Any member company with a marketing plan that involves
selling products directly or indirectly to independent salespeople shall
clearly state, in its recruiting literature, sales manual, or contract
with the independent salespeople, that the company will repurchase on
reasonable commercial terms currently marketable inventory, in the possession
of that salesperson and purchased by that salesperson for resale prior
to the date of termination of the salesperson's business relationship
with the company or its independent salespeople. For purposes of this
Code, "reasonable commercial terms" shall include the repurchase
of marketable inventory within twelve (12) months from the salesperson's
date of purchase at not less than 90 percent of the salesperson's original
net cost less appropriate set offs and legal claims, if any. For purposes
of this Code, products shall not be considered "currently marketable"
if returned for repurchase after the products' commercially reasonable
usable or shelf life period has passed; nor shall products be considered
"currently marketable" if the company clearly discloses to salespeople
prior to purchase that the products are seasonal, discontinued, or special
promotion products and are not subject to the repurchase obligation.
7a. The purpose of the buyback is to eliminate the potential harm of "inventory loading;" i.e., the practice of loading up salespeople with inventory they are unable or unlikely to be able to sell or use within a reasonable time period. Inventory loading has historically been accomplished by giving sellers financial incentives for sales without regard to ultimate sales to or use by actual consumers. The repurchase provisions of the Code are meant to deter inventory loading and to protect distributors from financial harm which might result from inventory loading.
"Inventory" is considered to include both tangible and intangible product; i.e., both goods and services. "Current marketability" of inventory shall be determined on the basis of the specific condition of the product. Factors to be considered by the Code Administrator when determining "current marketability" are condition of the goods and whether or not the products have been used or opened.
Changes in marketplace demand, product formulation, or labeling are not sufficient grounds for a claim by the company that a product is no longer "marketable." Nor does the ingestible nature of certain products limit per se the current marketability of those products. Government regulation which may arguably restrict or limit the ultimate resalability of a product does not limit its "current marketability" for purposes of the Code.
State statutes mandate that certain buyback provisions required by
law must be described in a direct seller's contract. While acknowledging
that the contract is probably the most effective place for such information,
the DSA Code allows for placement of the provision in either "recruiting
literature or contract." The DSA Code is meant to emphasize that
the disclosure must be in writing and be clearly stated. Wherever disclosed,
the buyback requirement shall be construed as a contractual obligation
of the company.
A company shall not place any unreasonable (e.g., procedural) impediments
in the way of salespeople seeking to sell back products to the company.
The buyback process should be as efficient as possible and designed to facilitate buyback of products. The buyback provisions apply to all terminating distributors who otherwise qualify for such repurchase, including distributors who are not new to a particular company, or those who have left a company to sell for another company.
b. Any member company with a marketing plan which requires independent salespeople to purchase company-produced promotional materials, sales aids or kits shall clearly state, in its recruiting literature, sales manual or contract with the independent salespeople, that the company will repurchase these items on reasonable commercial terms.
Any member company with a marketing plan which provides its independent salespeople with any financial benefit related to the sales of company-produced promotional materials, sales aids or kits shall clearly state, in its recruiting literature, sales manual or contract with the independent salespeople, that the company will repurchase, on reasonable commercial terms, currently marketable company-produced promotional materials, sales aids or kits.
A member company shall clearly state in its recruiting literature, sales manual or contract with the independent salespeople if any items not otherwise covered by this Section are ineligible for repurchase by the company.
7b. 1998 amendments made it clear that sales aids, kits and promotional materials, while not inventory or necessarily intended for resale, are subject to the repurchase requirement if a company requires their purchase or if there is a financial incentive associated with their sale. It was recognized that "loading" of these items can cause the same harm to plan participants as loading of "inventory."
With respect to the final paragraph of Section 7b., disclosure of an item's eligibility or ineligibility for the buyback is key. Provided that repurchase is not required by this Code provision, for those items a company chooses not to repurchase, the company should clearly and conspicuously disclose to the buyer that the items are not subject to the repurchase requirement. Under such disclosure, a refusal to take an item back will not constitute a violation providing the member is acting in good faith and not attempting to evade the repurchase requirement.
8. Earnings Representations
No member company shall misrepresent the actual or potential sales or
earnings of its independent salespeople. Any earnings or sales representations
that are made by member companies shall be based on documented facts.
8. There is ample legal precedent in the form of FTC decisions to afford guidance on the subject of earnings representations. While not controlling, these precedents should be used by the Code Administrator in making determinations as to the substantiation of company earnings claims.
The Code's simple prohibition of misrepresentations was intended, in part, to avoid unduly encumbering start-up companies that have little or no actual earnings history with their compensation plan or established companies that are testing or launching new compensation plans. The prohibition approach is meant to require that companies in these circumstances need only ensure that their promotional literature and public statements clearly indicate that the compensation plan is new and that any charts, illustrations and stated examples of income under the plan are potential in nature and not based upon the actual performance of any individual(s).
9. Inventory Loading
A member company shall not require or encourage an independent salesperson
to purchase inventory in an amount which unreasonably exceeds that which
can be expected to be resold and/or consumed within a reasonable period
of time.
9. See, Code Explanatory §7a. regarding inventory loading.
10. Payment of Fees
Neither member companies nor their representatives shall ask individuals
to assume unreasonably high entrance fees, training fees, franchise fees,
fees for promotional materials or other fees related solely to the right
to participate in the direct selling business.
10. High entrance fees can be an element of pyramid schemes, in which individuals are encouraged to expend large up front costs, without receiving product of like value. These fees then become the mechanism driving the pyramid and placing participants at risk of financial harm. Some state laws have requirements that fees be returned similar to the repurchase provisions delineated in Code §7a. The Code eliminates the harm of large fees by prohibiting unreasonably high fees. The Code Administrator is empowered to determine when a fee is "unreasonably high." For example, if a refund is offered for only a portion of an entrance fee, to cover what could be described as inventory, and there is nothing else given or received for the balance of the entrance fee, such as a training program, that portion of the entrance fee may be deemed to be unreasonably high by the Code Administrator. This Code section reinforces the provision in Code Part B. Responsibilities and Duties requiring companies to address the Code violations of their independent contractor sales force
B. Responsibilities and Duties
1. Prompt Investigation and No Independent Contractor
Defense
In the event any consumer shall complain that the salesperson or representative
offering for sale the products or services of a member company has engaged
in any improper course of conduct pertaining to the sales presentation
of its goods or services, the member company shall promptly investigate
the complaint and shall take such steps as it may find appropriate and
necessary under the circumstances to cause the redress of any wrongs which
its investigation discloses to have been committed.
Member companies will be considered responsible for Code violations by their solicitors and representatives where the Administrator finds, after considering all the facts, that a violation of the Code has occurred. For the purposes of this Code, in the interest of fostering consumer protection, companies shall voluntarily not raise the independent contractor status of salespersons distributing their products or services under its trademark or trade name as a defense against Code violation allegations and such action shall not be construed to be a waiver of the companies' right to raise such defense under any other circumstance.
The members subscribing to this Code recognize that its success will require diligence in creating an awareness among their employees and/or the independent wholesalers and retailers marketing the member's products or services of the member's obligations under the Code. No subscribing party shall in any way attempt to persuade, induce or coerce another party to breach this Code, and the subscribers hereto agree that the inducing of the breach of this Code is considered a violation of the Code.
2. Required Publication
All member companies are required to submit to DSA, along with its application
for membership or in the case of existing members along with their next
dues payment, a proposed program as to how the company plans on publicizing
DSA’s Code of Ethics to its sales people and consumers. The plan
shall contain, at a minimum, one of the following:
1. an inclusion on the company’s web site of DSA’s Code of Ethics with a step-by-step explanation as to how to file a complaint; or
2. a link from the company’s web site to DSA’s Code of Ethics with a clear, bold faced statement as to how to make the connection; or
3. an inclusion of the company’s Code of Ethics, or its complainant process, in its web site, or with an explanation of how a complainant may appeal to the DSA Code Administrator in the event the complainant is not satisfied with the resolution under the company code, or the company’s complaint process, with a reference to the web site of DSA’s Code of Ethics.
All members, after submission of their program, are required to state annually, along with paying their dues, that the program remains effective or indicate any change.
1. Interpretation and Execution
The Board of Directors of the Direct Selling Association shall appoint
a Code Administrator to serve for a fixed term to be set by the Board
prior to appointment. The Board shall have the authority to discharge
the Administrator for cause only. The Board shall provide sufficient authority
to enable the Administrator to properly discharge the responsibilities
entrusted to the Administrator under this Code. The Administrator will
be responsible directly and solely to the Board. The Board of Directors
will establish all regulations necessary to administer the provisions
of this Code.
2. Code Administrator
The Administrator shall be a person of recognized integrity, knowledgeable
in the industry, and of a stature that will command respect by the industry
and from the public. He shall appoint a staff adequate and competent to
assist him in the discharge of his duties. During his term of office,
neither the Administrator nor any member of his staff shall be an officer,
director, employee, or substantial stockholder in any member or affiliate
of the DSA. The Administrator shall disclose all holdings of stock in
any member company prior to appointment and shall also disclose any subsequent
purchases of such stock to the Board of Directors. The Administrator shall
also have the same rights of indemnification as the Directors and Officers
have under the bylaws of the Direct Selling Association.
The Administrator, in accordance with the regulations established by the Board of Directors as provided herein, shall hear and determine all charges against members subscribing hereto, affording such members or persons an opportunity to be heard fully. The Administrator shall have the power to originate any proceedings, and shall at all times have the full cooperation of all members.
3. Procedure
The Administrator shall determine whether a violation of the Code has
occurred in accordance with the regulations promulgated hereunder. The
Administrator shall answer as promptly as possible all queries posed by
members relating to the Code and its application, and, when appropriate,
may suggest, for consideration by the Board of Directors, new regulations,
definitions, or other implementations to make the Code more effective.
If, in the judgment of the Code Administrator, a complaint is beyond the Administrator's scope of expertise or resources, the Code Administrator may decline to exercise jurisdiction in the matter and may, in his or her discretion, recommend to the complainant another forum in which the complaint can be addressed.
The Administrator shall undertake through his office to maintain and improve all relations with better business bureaus and other organizations, both private and public, with a view toward improving the industry's relations with the public and receiving information from such organizations relating to the industry's sales activities.
D. Regulations for enforcement of DSA Code of Ethics
1. Receipt of Complaint
Upon receipt of a complaint from a bona fide consumer or where the Administrator
has reason to believe that a member has violated the Code of Ethics, the
Administrator shall forward a copy of the complaint, if any, to the accused
member together with a letter notifying the member that a preliminary
investigation of a specified possible violation pursuant to Section 3
is being conducted and requesting the member's cooperation in supplying
necessary information, documentation and explanatory comment. If a written
complaint is not the basis of the Administrator's investigation, then
the Administrator shall provide written notice as to the basis of his
reason to believe that a violation has occurred. Further, the Code Administrator
shall honor any requests for confidential treatment of the identity of
the complaining party made by that party.
2. Cooperation with the Code Administrator
In the event a member refuses to cooperate with the Administrator and
refuses to supply necessary information, documentation and explanatory
comment, the Administrator shall serve upon the member, by registered
mail, a notice affording the member an opportunity to appear before the
Appeals Review Panel on a certain date to show cause why its membership
in the Direct Selling Association should not be terminated. In the event
the member refuses to cooperate with the Administrator or to request a
review by the Appeals Review Panel, the DSA Board of Directors, or a designated
part thereof, may vote to terminate the membership of the member.
3. Informal Investigation and Disposition Procedure
The Administrator shall conduct a preliminary investigation, making such
investigative contacts as are necessary to reach an informed decision
as to the alleged Code violation. If the Administrator determines, after
the informal investigation, that there is no need for further action or
that the Code violation allegation lacks merit, further investigation
and administrative action on the matter shall terminate and the complaining
party shall be so notified.
The Administrator may, at his discretion, remedy an alleged Code violation through informal, oral and written communication with the accused member company.
If the Administrator determines that the allegation has sufficient merit, in that the apparent violations are of such a nature, scope or frequency so as to require remedial action pursuant to Part E and that the best interests of consumers, the association and the direct selling industry require remedial action, he shall notify the member of his decision, the reasoning and facts which produced it, and the nature of the remedy he believes should be effected. The Administrator's notice shall offer the member an opportunity to voluntarily consent to accept the suggested remedies without the necessity of a Section 4 hearing. If the member desires to dispose of the matter in this informal manner it will, within 20 days, advise the Administrator, in writing, of its willingness to consent. The letter to the Administrator may state that the member's willingness to consent does not constitute an admission or belief that the Code has been violated.
4. Appeals Review Panel
An Appeals Review Panel consisting of five representatives from active
member companies shall be selected by the Executive Committee of DSA's
Board of Directors. Each member shall serve for a term of three years.
The five members shall be selected in a manner that represents a cross-section
of the industry. When an appeal is made by a member company, the Chairman
of the DSA Board of Directors shall select three of the five members of
the Appeals Review Panel to constitute a three-person panel to review
the appeal, and shall name one of them Chairman of that panel. When possible,
no company of the three shall sell a product that specifically competes
with the Appellant, and every effort shall be made to avoid conflicts
in selecting the panel. If for any reason, a member of the panel cannot
fulfill his or her duties or fill out a term for any reason, the Chairman
of the Board of DSA can replace that person with a new appointment for
the remainder of the unfulfilled term with the concurrence of the Executive
Committee.
5. Appeals Review Procedure
If a member company objects to the imposition of a remedial action by
the Administrator, it shall have a right to request a review of the Administrator's
decision by the Appeals Review Panel. A member company must make such
a request in writing submitted to the Administrator within 14 days of
being notified of the remedial action by the Administrator. Within 10
days of receiving such a request, the Administrator shall notify the Chairman
of the Board of DSA who at that time shall select the three-person panel
in accordance with Section 4 above. That selection shall take place within
30 days of the member's request for the review.
As soon as the panel has been selected, the Administrator shall inform the Appellant of the names of the panelists, including the name of the chairman of the panel. Within 14 days of that notification, the Administrator shall send a copy of the Complaint and all relevant documents, including an explanation of the basis of the decision to impose remedial action, to the panelists with copies to the Appellant. Upon receipt of such information, the Appellant shall have 14 days to file with the panel its reasons for arguing that remedial action should not be imposed along with any additional documents that are relevant. Copies of that information should also be sent to the Administrator.
Once the information has been received by the panelists from both the Administrator and the member company, the panel will complete its review within 30 days or as soon thereafter as practicable. The panel shall decide whether the Administrator's decision to impose remedial action was reasonable under all of the facts and circumstances involved and shall either confirm the Administrator's decision, overrule it, or impose a lesser sanction under Part E. The panel shall be free to contact the Administrator and the Appellant and any other persons who may be relevant witnesses to the Complaint, formally or informally as deemed appropriate. A decision by the panel shall be final and shall be promptly communicated both to the Administrator and the Appellant. The costs involved in the appeal such as costs of photocopying, telephone, fax, and mailing, shall be borne by the Appellant.
6. Codes of Ethics of Member Companies
a. Approval By Administrator
If a complaint is against a member company that has a code of ethics which
has been registered with the DSA Code of Ethics Administrator, and the
Administrator has issued an opinion that the company code is compatible
with DSA's Code of Ethics, the Complainant must first exhaust all remedies
under the company code of ethics before filing a complaint with DSA's
Code Administrator. If the Complainant has exhausted those remedies and
is of the opinion that the company's disposition of the Complaint was
unsatisfactory, the Complainant can appeal the company's decision to the
DSA Code Administrator. The Complainant must first notify the company
of the intent to appeal to DSA. The Complainant must also forward all
relevant documentation from the company code proceeding to DSA's Administrator.
After receiving such an appeal, the Administrator shall confer with the company to obtain any additional information concerning the matter as well as an explanation for the company's decision. The Administrator shall decide whether the company's resolution of the complaint was reasonable under all of the facts and circumstances involved. If the Administrator decides in the negative, the Administrator shall work with the company in an effort to resolve the matter satisfactorily to all parties. If the Administrator finds that the member company will not cooperate in that effort, the Administrator can impose remedial action in accordance with DSA's Code of Ethics. The Complainant shall bear all costs of an appeal from a decision under a company code, including such costs as photocopying, telephone, fax, and mailing charges.
b. Alternative Enforcement Process
In certain instances, a member company may provide a process whereby complaints
can be addressed and which provide an equally acceptable vehicle for complaint
resolution. In such instances – provided the process has been formally
reviewed and approved by the DSA Code Administrator – the member
company’s process may be substituted for and the member company
relieved of, adherence to the provision of Section D. Regulations for
Enforcement of the DSA Code of Ethics.* In order for a member company’s
enforcement process to be approved as an alternative to Section D, the
process must contain all the following elements:
1. The company has adopted an investigation and review process that substantially mirrors that presented in Section D and contains at more than one level the formal review of complaints regarding its salespersons or representatives;
2. The company has adopted an appeal process to the steps outlined in Paragraph 1 above that includes review by a neutral and competent third party, as approved by the DSA Code of Ethics Administrator;
3. The company offers a satisfaction guarantee or the equivalent on product sales to consumers who are not salespersons or representatives of the member company; and
4. The company advises its salespersons or representatives of the dispute resolution process in a sufficiently transparent manner including notices on its web site and in appropriate literature.
c. If a member company meets the above requirements of paragraph b., DSA will indicate on its web site that the member company’s Code of Ethics is an approved Alternative taking precedence over the DSA’s Code of Ethics Section D-Regulations for Enforcement of DSA Code of Ethics.
d. Those companies that are on the Company Code Alternative list will be exempt from the required publication provisions of Section B.2 of the Code and will not have to show on their web sites or in separate literature that complaints against the company should be filed with the DSA Code of Ethics Administrator. The DSA Code of Ethics web site will indicate, however, that all member companies are subject to all other provisions of the DSA Code of Ethics. Further, if the DSA Code of Ethics Administrator finds that any company on the Alternative list has failed to comply with the requirements for such a listing the Administrator may remove that company from the list.
E. Powers of the Administrator
1. Remedies
If, pursuant to the hearing provided for in Part D Section 3, the Administrator
determines that the accused member has committed a Code of Ethics violation
or violations, the Administrator is hereby empowered to impose the following
remedies, either individually or concurrently, upon the accused member:
1. Request complete restitution to the complainant of monies paid for the accused member's products which were the subject of the Code complaint;
2. Request the replacement or repair of any accused member's product, the sale of which was the source of the Code complaint;
3. Request the payment of a voluntary contribution to a special assessment fund which shall be used for purposes of publicizing and disseminating the Code and related information. The contribution may range up to $1,000 per violation of the Code.
4. Request the accused member to submit to the Administrator a written commitment to abide by the DSA Code of Ethics in future transactions and to exercise due diligence to assure there will be no recurrence of the practice leading to the subject Code complaint.
2. Case Closed
If the Administrator determines that there has been compliance with all
imposed remedies in a particular case, he shall close the matter.
3. Refusal to Comply
If a member refuses to voluntarily comply with any remedy imposed by the
Administrator, and has not requested a review by the Appeals Review Panel,
the DSA Board of Directors, or designated part thereof, may conclude that
the member should be suspended or terminated from membership in the Association.
In that event the Administrator shall notify the member of such a decision
by registered mail and shall remind the member of its right to have the
Administrator's original decision reviewed by the Appeals Review Panel
in accordance with Part D Section 5 (Appeals Review Procedure) of this
Code.
4. Appeal for Reinstatement After Suspension
or Termination
If the suspension or termination is not appealed, or if it is confirmed
by the Appeals Review Panel, a suspended member, after at least ninety
days, and a terminated member, after at least one year, may request the
opportunity to have its suspension or termination reviewed by the Appeals
Review Panel which may in its discretion reinstate membership.
5. Referral to State or Federal Agency
In the event a member is suspended or terminated, and continues to refuse
to comply with any remedy imposed by the Administrator within 30 days
after suspension or termination, the Administrator may then consult with
independent legal counsel to determine whether the facts that have been
ascertained amount to a violation of state or federal law. If it is determined
that such a violation may have occurred, the Administrator shall so notify
the accused member by certified or registered mail, return receipt requested,
and if appropriate action has not been taken by the accused member, and
communicated to the Administrator after 15 days following such notice,
the Administrator may submit the relevant data concerning the complaint
to the appropriate federal or local agency.
1. At no time during an investigation or the hearing of charges against a member shall the Administrator or member of the Appeals Review Panel confer with anyone at any time concerning any alleged violation of the Code, except as provided herein and as may be necessary to conduct the investigation and hold a hearing. Any information ascertained during an investigation or hearing shall be treated as confidential, except in cases where the accused member has been determined to have violated federal, state or local statutes. At no time during the investigation or the hearing of charges shall the Administrator or a member of the Appeals Review Panel confer with a competitor of the member alleged to be in violation of the Code, except when it may be necessary to call a competitor concerning the facts, in which case the competitor shall be used only for the purpose of discussing the facts. At no time shall a competitor participate in the Administrator's or in the Appeals Review Panel's disposition of a complaint.
2. Upon request by the Administrator to any member, all documents directly relating to an alleged violation shall be delivered to the Administrator. Any such information obtained by the Administrator shall be held in confidence in accord with the terms of these regulations and the Code. Whenever the Administrator, either by his own determination or pursuant to a decision by the Appeals Review Panel, terminates an action which was begun under the Code, a record of the member accused shall be wiped clean and all documents, memoranda or other written material shall either be destroyed or returned, as may be deemed appropriate by the Administrator, except to the extent necessary for defending a legal challenge to the Administrator's or Appeals Review Panel's handling of a matter, or for submitting relevant data concerning a complaint to a local, state or federal agency. At no time during proceedings under this Code regulation or under the Code shall the Administrator or member of the Appeals Review Panel either unilaterally or through the DSA issue a press release concerning allegations or findings of a violation of the Code unless specifically authorized to do so by the Executive Committee of DSA's Board of Directors.
Resignation from the Association by an accused company prior to completion of any proceedings constituted under this Code shall not be grounds for termination of said proceedings, and a determination as to the Code violation shall be rendered by the Administrator at his or her discretion, irrespective of the accused company's continued membership in the Association or participation in the complaint resolution proceedings.
This Code may be amended by vote of two thirds of the Board of Directors.
As Adopted
June 15, 1970
As Amended
by Board of Directors through
May 19, 2001
