Direct Selling Agreement Template for England and Wales

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Key Requirements PROMPT example:

Direct Selling Agreement

"I need a Direct Selling Agreement for my UK-based cosmetics company that will appoint independent sellers across Greater London, with specific provisions for online sales and social media marketing, to be implemented from March 2025."

Document background
Direct Selling Agreements are essential documents for businesses operating direct-to-consumer sales models in England and Wales. These agreements define the relationship between companies and their independent sellers, ensuring compliance with UK consumer protection laws, direct selling regulations, and data protection requirements. The agreement typically covers product distribution rights, commission structures, territory assignments, and operational guidelines. It's particularly important for businesses using multi-level marketing or direct selling business models, requiring careful consideration of both the Trading Schemes Act 1996 and Consumer Rights Act 2015.
Suggested Sections

1. Parties: Identification and details of the company and direct seller

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement

4. Appointment and Territory: Scope of selling rights and geographical limitations

5. Products and Pricing: Details of products/services and pricing structure

6. Commission Structure: Payment terms and commission calculations

7. Obligations of Direct Seller: Responsibilities and conduct requirements

8. Company Obligations: Support, training, and company commitments

9. Term and Termination: Duration and termination provisions

Optional Sections

1. Non-Compete Clauses: Restrictions on competing activities - use when protecting market position is crucial

2. Minimum Performance Requirements: Sales targets and performance metrics - use when specific performance levels are required

3. International Sales: Cross-border selling provisions - use when international sales are permitted

4. Digital Marketing Rules: Online promotion guidelines - use when online selling is included

Suggested Schedules

1. Product List: Detailed catalog of products/services

2. Commission Structure Schedule: Detailed breakdown of commission calculations

3. Territory Map: Geographical boundaries of selling rights

4. Marketing Guidelines: Approved marketing practices and materials

5. Training Requirements: Mandatory training programs and certifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Industries

Consumer Rights Act 2015: Primary legislation governing consumer contracts, quality of goods and services, and unfair terms provisions in England and Wales

Consumer Contracts Regulations 2013: Regulates cooling-off periods, information requirements, and cancellation rights for consumer contracts, particularly relevant for direct selling

Trading Schemes Act 1996: Regulates multi-level marketing and direct selling schemes, including provisions to prohibit pyramid schemes

Business Protection from Misleading Marketing Regulations 2008: Governs B2B marketing practices and ensures fair representation in business-to-business relationships

Consumer Protection from Unfair Trading Regulations 2008: Prohibits unfair commercial practices, including misleading actions and omissions in consumer trading

Data Protection Act 2018 and UK GDPR: Regulates personal data handling and privacy requirements in business operations

Electronic Commerce Regulations 2002: Governs online selling provisions and electronic commerce requirements

Competition Act 1998: Addresses anti-competitive practices and vertical agreements in business relationships

DSA Code of Practice: Direct Selling Association industry standards and best practices for direct selling operations

Financial Services and Markets Act 2000: Relevant when financial products are involved in direct selling arrangements

Employment Rights Act 1996: Addresses employment status considerations and rights for direct sellers, particularly regarding self-employed status

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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