Regulation on Direct Selling: Legal Analysis and Compliance Requirements
Introduction
The Regulation on Direct Selling, published in the Official Gazette dated 8 August 2025, constitutes the first comprehensive and dedicated legal framework on direct selling systems in Türkiye. The Regulation aims to protect consumers, prevent pyramid schemes, and ensure the establishment of a transparent and auditable structure between individuals and companies engaged in direct selling activities.
Scope and Definitions
The Regulation applies to direct selling systems, direct selling companies, and sellers engaged in direct selling activities. Definitions such as “direct seller,” “direct selling company,” and “compensation plan” are provided to clearly define the scope and application of the Regulation.
Fundamental Principles and Prohibitions
Marketable Goods or Services Requirement: The goods or services offered must be suitable for marketing to consumers; products whose sale is prohibited, capital market instruments, and crypto-assets may not be offered within the system.
Prohibition of Misleading Practices: Promises of rapid wealth, the provision of misleading or deceptive information, and the application of undue pressure are expressly prohibited.
Prevention of Pyramid Structures: To prevent income models based on mere recruitment of new members, compensation plans must primarily generate income from sales; income derived from recruitment must be limited.
Monetary Limits on Benefits:
Commissions, bonuses, or similar benefits may not exceed 50% of annual net sales.
Benefits derived from new member recruitment may not exceed 30% of total benefits.
Corporate Structure Requirements
Companies intending to engage in direct selling activities must be incorporated as capital companies and have a minimum paid-in capital of TRY 10 million.
Additionally, such companies must maintain a blocked guarantee of TRY 3 million in accounts opened with banks established in Türkiye.
Before commencing operations, companies must obtain a Direct Selling Authorization Certificate from the Ministry of Trade, valid for three years.
Consumer Rights and Seller Protection
Right of Withdrawal for Consumers: Consumers are granted an unconditional right of withdrawal within 30 days; in cases of incomplete disclosure, this period may be extended up to 1 year.
Right of Withdrawal for Sellers: Direct sellers may withdraw from the system within 30 days from joining, without any payment obligation. In such cases, the company must accept the return of unused goods and refund the amount paid.
Seller Information Form: Direct sellers must provide an information form containing details such as full name/trade name, seller number, and contact information.
Compliance Timeline
Companies already engaged in direct selling activities must comply with the new requirements and apply for an authorization certificate no later than 30 January 2026.
Conclusion and Evaluation
The Regulation marks a significant step towards ensuring that direct selling systems operate in a safe, ethical, and consumer-respectful manner. The capital, guarantee, authorization, and disclosure obligations imposed on companies and sellers are expected to foster transparency, trust, and sustainability in the sector in the long term.
For compliance planning, roadmaps, and legal assistance on this matter, you are welcome to contact us at any time.
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