Establishment of direct sale mechanism in Turkey 2024 needs to be reviewed. Indeed, legal amendments to the Law on Consumer Protection needs to be comprehensively analyzed by all practitioners including Turkish business lawyers. The Law Numbered 7529 was passed through the Turkish Grand National Assembly by bringing a direct selling system as Article 47 (A) of the Law on Consumer Protection Numbered 6502.
2024 legal amendments to the Law on Consumer Protection for the establishment of a direct sale mechanism will be examined in this article. The available work will present embracing conclusions for the benefit of all practitioners in the field.
What is the meaning of direct sale?
In summary, direct sales are described as sales happening between a trademark and the end-user without any distributor or intermediary services. Sales from seller to customer can occur in person or online. Direct sale plays a vital role upon accelerating trade globally.
What is an example of direct sale?
When a shirt trademark sells its products through its own websites, it is a good sample of direct sales, mainly known as direct to consumer (D-2-C). It means that there is no intermediary, no agency, no distributor, no other company or individual between consumer and seller.
What is meant by the direct sale mechanism in Turkey ?
Direct sale mechanism refers to a marketing system in which goods or services are on sale for consumers regardless of place. It means that consumers can buy any goods or services while working and or staying at home. It is significant to indicate that the Law Numbered 7529 introduces a direct sale mechanism by formulating 47 (A) to the Law on Consumer Protection Numbered 7529. It will have a direct impact upon corporate governance and individual suppliers.
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What is the key revision through the Law Numbered 7529 on The Law on Consumer Protection Numbered 6502 for direct sale mechanism in Turkey?
The revision came into force after the circuit of Official Gazette dated October 30, 2024 and numbered 32707.
New Article 47(A) of the Law on Consumer Protection describes the meaning of direct sale mechanism in Turkey as a mechanism in which direct sellers, who are established by a direct sales company and are not employed under an employment contract, but operate as independent representatives, distributors, consultants and similar names in return for benefits such as commissions, bonuses, incentives and rewards by marketing goods or services to consumers.
For a comprehensive analysis of the company establishment in Turkey take a look at our articles on:
- Establishment of A Company in Turkey
- Limited Liability Company Formation
- 2024 Minimum Capital Amounts for Joint-Stock and Limited Liability Companies in Turkey
What are key obligations for direct sale companies in Turkey?
We should bear in mind core responsibilities for the direct sale companies in Turkey. First of all, the direct sales company is obliged to establish a system enabling the consumer to be informed properly and to submit their requests and notifications. Secondly, under paragraph 2 of the same article, a direct sale company should be a capital company.
Conclusion
Taking into account the increasing market size of the direct selling industry in Turkey, Turkish policy makers intervene in such an increase by taking legal measures through a new legal amendment. This article is intended to investigate the nature of the establishment of a direct selling mechanism by the Turkish legal framework. Considering all aforementioned analysis, it is right to argue that establishment of a direct sale mechanism will have a crucial impact upon Turkish trade market in the future.
