PETALING JAYA: Direct Selling Association Malaysia (DSAM) and Lazada, Southeast Asia’s pioneer e-commerce platform, signed a memorandum of understanding (MoU) as part of a strategic collaboration to strengthen oversight of product sales of the direct selling industry on the Lazada e-commerce platform.
This landmark MoU represents the inaugural partnership between 145 DSAM member companies and Lazada Malaysia, under the guidance and support of the Ministry of Domestic Trade and Cost of Living (KPDN), which regulates the direct selling industry through the Direct Selling and Anti-Pyramid Schemes Act 1993 which requires members of DSAM, direct selling companies and authorised distributors to have approval.
The first-ever such initiative permits only registered distributors with a letter of authorisation (LoA) to directly market direct selling products on the Lazada platform.
KPDN senior director of distributive trade and business sector Datuk Rohaizi Bahari, who witnessed the MoU signing, said, “The ministry is of the view that this partnership will give rise to a fair and harmonious business landscape, and increase consumer confidence in buying direct sales products through online platforms.”
This effort, he added, will also ensure quality and authenticity of products are maintained for a safer online ecosystem.
He said the ministry encourages such future collaborations which add value to the growth of domestic trade and in contributing to the national economy in general, through the direct selling industry.
DSAM code administrator Tan Sri Dr Noor Hisham also witnessed the MoU signing.
Recognising the pressing challenges, the MoU will implement rigorous measures proactively to enhance and strengthen oversight of DSAM member companies’ product sales on Lazada Malaysia. DSAM and Lazada will join hands to ensure product quality and authenticity, contributing to a safer online ecosystem for both consumers and sellers.
Official supporting documents such as a copy of the direct selling licence, as well as the LoA by DSAM member companies, must be submitted by the sellers prior to onboarding and operating their online store on Lazada. For all existing sellers of direct selling products on Lazada, an LoA must be obtained.
“Through this MoU, sellers on Lazada can be authenticated as legitimate sellers of DSAM member companies’ products through a joint-approval process from DSAM member companies and Lazada. This will enable us to establish a legitimate business landscape and foster sustainable entrepreneurial growth from Malaysia’s current base of 4 million distributors nationwide,” said DSAM president Zaihan Ariffin.
Meanwhile, Lazada Malaysia CEO Alan Chan said the partnership is all about trust and assurance and it ensures that the consumers will be able to buy quality products and authentic goods from the brands’ trusted authorised sellers on Lazada’s platform.
Currently, Malaysia has more than 400 direct selling licence holders.
DSAM has been awarded Platinum status, the highest ranking, by the 62-country strong World Federation of Direct Selling Associations.
