Direct Selling Association Malaysia and Lazada are looking into strengthening the oversight of product sales of the Direct Selling industry on the e-Commerce platform under the guidance and support of the Ministry of Domestic Trade and Cost of Living.
With this agreement, only registered distributors with a Letter of Authorisation to directly market Direct Selling products on the Lazada platform. KPDN Senior Director of Distributive Trade & Business Sector, Dato’ Rohaizi bin Bahari, who witnessed the MoU signing said, “The Ministry is of the view that this partnership will give rise to a fair and harmonious business landscape, and increase consumer confidence in buying direct sales products through online platforms. This effort will also ensure quality and authenticity of products are maintained for a safer online ecosystem. The Ministry encourages such future collaborations which adds value to the growth of domestic trade and in contributing to the national economy in general, through direct selling industry”.
Official supporting documents such as a copy of the direct selling license, as well as the letter of authorization by DSAM Member Companies need to be submitted by the sellers prior to onboarding and operating their online store on Lazada. For all existing sellers of Direct Selling products on Lazada, a LOA must be obtained.
Direct Selling distributors complying with the Act 500 face challenges posed by those who sell DSAM members’ products without adhering to the industry’s prescribed conditions. The situation it said had led to the proliferation of counterfeit products, cross-border unregistered products, items with unapproved claims, unauthorized pricing issues, and altered products, as well as instances of abuse and scams, all of which have had detrimental effects on both the DSAM Member Companies and their distributors.
