On April 30, the International Chamber of Commerce (ICC), released its newly revised International Code of Direct Selling, which it developed in close cooperation with the World Federation of Direct Selling Associations, which represents the basis for direct selling governance worldwide.
Direct selling, as defined by the ICC International Code of Direct Selling, “refers to the selling of products directly to consumers, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations, where the direct seller may explain or demonstrate products”.
According to the ICC, the Inter- national Code of Direct Selling is an instrument for self-discipline, but may also be used by the courts as a reference document within the framework of applicable legislation. The ICC contends that its International Code for Direct Selling is also able to fill the gap in countries which have not created direct selling laws.
The International Code of Direct Selling was first published in 1978 and last revised in 2007, with this new version bringing it up to date with the Consolidated ICC Code of Advertising and Marketing Communications Practice, which was revised in 2011.
The International Code of Direct Selling spells out responsible conduct towards consumers, such as the credo not to exploit a consumer’s age and that product demonstrations should be complete with regard to price. It also covers recruitment practices in the direct selling industry.
Recent changes include a section on referral selling, stipulating that con- sumers should not be induced to make a purchase based on the assumption of a reduced price for customer referrals. The ICC International Code of Direct Selling also requires that direct selling companies communicate the contents of the International Code of Direct Selling to their direct sellers and that compliance with the standards of the code should be a condition for membership in the company’s distribution system. In keeping with the principle of truthfulness, the ICC International Code of Direct Selling specifies that “descriptions, claims, illustrations or other elements relating to verifiable facts should be capable of substantiation”.
Liechtenstein WTO Agreement
On May 2, Liechtenstein became the first World Trade Organisation (WTO) member to ratify the amendment to the WTO Agreement on Government Procurement (GPA), which was adopted on March 30, 2012.
The GPA, a plurilateral agreement within the WTO system, provides a framework for the progressive liberalisation of markets for the procurement of goods, services and construction services (public works). It is built around the principles of nondiscrimination, transparency and procedural fairness, and embodies a set of best practices in public procurement based on the experience of the participating governments. The existing version of the agreement was developed in parallel with the Uruguay round of multilateral trade negotiations. The revised text of the agreement and expansion of related market access commitments attached to the protocol were negotiated by the parties over a period of more than ten years. The negotiation reached political conclusion in 2011, prior to the formal adoption of the results of the negotiations in March 2012.
Currently, the GPA covers 42 WTO members. A further ten WTO members have applied for accession to the agreement, these being Albania, China, Georgia, Jordan, the Kyrgyz Republic, Moldova, New Zealand, Oman, Panama and Ukraine. Seven other members have commitments to join the GPA as part of their WTO accession protocols, and these are Croatia, the former Macedonia, Mongolia, Montenegro, the Russian Federation, Saudi Arabia and Tajikistan. In addition, the GPA is used extensively as a template for government procurement chapters in bilateral or regional trade agreements, including with nonparties to the agreement. The coming into force of the protocol of amendment is expected to encourage additional interest in accession to the agreement by other WTO members, in part based on the new flexibilities and transitional measures that it incorporates.
Ropes and Cables Interim Review
Comments in respect of the initiation of an interim review of the antidumping duties on ropes and cables, classifiable under tariff sub-heading 7312.10.40, manufactured by Casar Drahtseilwerk Saar and originating in or imported from Germany, are due by May 27.