Direct Sales and the Internet

01 August 2005 Publication
Authors: Jane Fergason

Direct Selling News

When people hear the words “direct selling” they usually think of “person-to-person” selling. However, in recent years the use of the Internet by direct selling companies for product sales and other business transactions has presented opportunities for rapid expansion into new markets, more efficient product and service distribution, additional ways to communicate with and train distributors as well as the ability to reach a larger number of people. The combination of e-commerce and one-on-one marketing gives direct sales companies the benefit of promoting and selling through e-commerce with the added advantage of personal, face-to-face endorsements of products and services by distributors.

The opportunities created by the Internet also have brought with them certain challenges and issues, such as:

Today, numerous direct sales companies are enrolling individuals as distributors on their Web sites. The procedure typically involves the posting of the distributor agreement and/or the company’s policies and procedures on its Web site for a potential distributor’s review and consent. Since June 30, 2000, when the Electronic Signatures in Global and National Commerce (E-Sign) Act was enacted, the validity of electronic signatures has not been in question. However, it is important that proper procedures are followed in order to ensure the binding nature of the transaction.

Read more.

Related Services

Insights

A Review of Recent Whistleblower Developments
19 July 2019
Legal News: Whistleblower Developments
Cloud security inadequate for Cyber threats, are you surprised?
19 July 2019
Internet, IT & e-Discovery Blog
Blockchain: A Tool With a Future in Healthcare
18 July 2019
Health Care Law Today
Do You Know What IMMEX Stands For?
16 July 2019
Dashboard Insights
Review of 2020 Medicare Changes for Telehealth
11 December 2019
Member Call
2019 NDI Executive Exchange
14-15 November 2019
Chicago, IL
MAGI’s Clinical Research Conference
29 October 2019
Las Vegas, NV
Association for Corporate Counsel Annual Meeting 2019
27-30 October 2019
Phoenix, AZ