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.
Introduction
2024 legal amendments to the Law on Consumer Protection for the establishment of a direct sale mechanism will be examined in this article. In October 2024, Turkey enacted significant amendments to its consumer protection framework with the new article by the Law No. 7529, introducing a formal structure for direct selling within the existing Consumer Protection Law No. 6502. This development holds substantial implications for businesses, legal professionals, and consumers engaged in direct sales.
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.
Understanding direct sale mechanism in Turkey?
Direct selling refers to the marketing and sale of products directly to consumers, typically outside of a fixed retail environment. This model often involves independent representatives who sell goods or services directly to end-users, leveraging personal networks and direct communication.
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.
For our work and all legal services on the matter of investment, please click our “Practice Areas”, titled “Investment Advice”.
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.
The introduction of Article 47(A) into the Consumer Protection Law No. 6502 establishes a clear legal framework for direct selling practices in Turkey. Notable aspects of this amendment include particularly
Definition and Scope of Establishment of Direct Sale Mechanism in Turkey:
The law defines direct selling as a system where independent representatives, not bound by employment contracts, market goods or services to consumers in exchange for benefits such as commissions, bonuses, incentives, and rewards.
Corporate Structure Requirements of Establishment of Direct Sale Mechanism in Turkey:
Direct selling companies are now required to operate as capital companies and must meet additional criteria specified in forthcoming regulations.
Consumer Rights
Consumers purchasing products through direct sales are granted a 30-day unconditional right of withdrawal, enhancing consumer protection in these transactions.
The enactment of Law No. 7529 marks a pivotal step in regulating direct selling in Turkey, aligning the industry with international standards and safeguarding consumer interests. It is imperative for all stakeholders to thoroughly understand and adapt to these changes to ensure compliance and to foster a fair and transparent marketplace.
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. Turkish business lawyers and legal advisors need to familiarize themselves with these amendments to effectively counsel clients involved in direct selling, ensuring adherence to the updated legal standards.The amendments aim to bolster consumer confidence by providing clearer rights and protections within the direct selling framework.
