Opportunities and Threats:

How to Engage with Local Regulators for New RegulationsBYMercado- Mary Kay, Phils. Inc.

Background: The Philippines Direct Selling

• Started w/ 7 companies and now 28 companies w/ over 2 million sales force

• No direct govt agency regulating the industry.

• P16Billion (U$300milion) industry annual sales.

• Annual growth rate of 15-17% solicits retailers envy.

• DTI and SEC has a MOA defining their basic roles and responsibilities.

How did the association support this?

What was being done to influence regulators?

If there is nothing to regulate, do we need the regulations?

Isn’t it the advantage of the industry to have fewer regulations?

BEING PROACTIVE…..

What did we do to be proactive and prevent occurrence of violations?

• Educate different sectors i.e. consumer, government and private sector. Certificate Course on DS and Networking Collateral Materials Public Appearances DS as an elective course(subjects)

What did we do to be proactive and prevent occurrence of violations?

• Partner with government agencies in conduct of programs. Orientation Program APEC-CEPI – Tri-Sectoral Conference on

Consumer Welfare Government Officers as Guest Speakers Association as Consultants

What did we do to be proactive and prevent occurrence of violations?

• Self-regulate among ourselves. Membership Application Internal Communication among members’ staff

and sales force.

What did we do to be proactive and prevent occurrence of violations?

• Minimize our distance from politicians.

Opportunities and Threats:

• Opportunity: More dialogues with key legislators.

• Threat: Legislators defining what is a legitimate DS company instead of what it should not be.

• Opportunity: DSAP as a recommending body to the SEC.

• Threat: Non-qualified member companies forming their own association and having a separate agenda.

Conclusion:

• Regulators must be able to trust us. By espousing ethical practices among ourselves By sustaining education of the public By directly partnering with government

agencies. By self-regulating.

Thank You…