Direct Sales Agreement Template for Malaysia

The Direct Sales Agreement is a crucial document for companies operating direct selling businesses in Malaysia. It must comply with the Direct Sales and Anti-Pyramid Scheme Act 1993 and other relevant Malaysian legislation, including consumer protection and data privacy laws. This agreement is essential when establishing formal relationships with direct sellers who will market and sell products directly to consumers. It covers critical aspects such as licensing requirements, mandatory cooling-off periods, commission structures, territorial rights, and compliance obligations. The document is particularly important for companies in consumer goods, health and wellness, and similar sectors where direct selling is a common distribution model. It should be regularly reviewed and updated to ensure continued compliance with evolving Malaysian regulations.

1. Parties: Identification of the Direct Sales Company and the Direct Seller, including registration/license numbers

2. Background: Context of the agreement and brief description of the direct sales business

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement

4. Appointment and Territory: Terms of appointment as direct seller and defined sales territory

5. Duration and Cooling-off Period: Term of agreement and mandatory 10-day cooling-off period as per Malaysian law

6. Direct Seller Obligations: Core responsibilities including sales conduct, reporting, and compliance requirements

7. Company Obligations: Company's commitments regarding product supply, training, and support

8. Products and Pricing: Details of products to be sold and pricing structure

9. Commission Structure: Detailed breakdown of commission calculations and payment terms

10. Marketing and Promotion: Guidelines for marketing activities and use of company materials

11. Compliance with Laws: Obligations to comply with direct sales, consumer protection, and other applicable laws

12. Confidentiality: Protection of confidential information and trade secrets

13. Data Protection: Compliance with Personal Data Protection Act 2010 requirements

14. Termination: Grounds and procedures for termination of the agreement

15. Post-Termination Obligations: Obligations and restrictions following agreement termination

16. General Provisions: Standard contractual provisions including notices, amendments, and governing law