DSAP bares 8-point test against pyramiding

CEBU, Philippines - As part of its aim to protect the public against pyramiding schemes, the   Direct Selling Association of the Philippines (DSAP) has released its “8 Point Test,” an evaluation method measuring the legitimacy of a direct selling company.  

An advocacy implemented in partnership with the Department of Trade and Industry (DTI), the test is the basis of the DSAP in qualifying companies to be part of the organization. 

The eight-point test includes the presence of the product, bank compensation on sales-based commission and not on registration, the intent to sell a product, the guarantee to earn income based on production and not on the number of recruits, opportunity on a product market, reasonable product return policy, the fair market value, and the compelling need of the public to a product.

DSAP Chairman Perry Mogar said companies that do not pass the   8-point test will be advised to work on the areas they need to improve on and go back to DSAP for second review and assessment.

Mogar added that the longevity of the company reflects the stability and credibility in the direct selling industry.

On the other hand, DSAP Ways and Means Committee Head Rosalio Valenzuela said that it is a requirement that products must end up in the hands of the costumers not with the dealers since direct selling is not recruitment-based. 

“There is no investing of money in direct selling, we don’t just invest on money but we work on the products,” he said.

For health products, he added that consumers should check on the approval of the Bureau of Food and Drugs (BFAD) and not just DSAP’s 8-point test. — (FREEMAN)