New Perspectives

Stories in this section:
Blogs: Can't Beat 'Em? Join 'Em!
Academic Forum: Achieving the Vision
Top Desk: Looking Ahead to the New Year...And Beyond
DSA: Working to Make a Difference

DSA: Working to Make a Difference
Joseph N. Mariano Executive Vice President and Legal Counsel, Direct Selling Association

On the wall of my office, I have hung a piece of "art" that my son Benjamin created some years ago. There's a crayon rendering of an office building and a (handsome) man; underneath the scrawled words of a 6-year-old-"When I grow up I want to be a DSA worker."

When Ben wrote that, I doubt he was thinking about all the good things DSA does for the direct selling industry or the 48 state capitals his dad has visited over the years. It's more likely that he was just expressing his desire to spend a bit more time with his dad (something he probably has less interest in now that he's almost a teenager). I look at that poster every day, though, and count my blessings that I am a "DSA worker," because I have a chance to make a difference in people's lives, just as the rest of the community of our company executives does. Like you, we at DSA are out there working for the success of more than 14 million salespeople every day. This work comes in many forms- whether it's working with the media, planning and executing educational programming for executives or administering a full slate of member services.

But there's one other component that's critical, and that's DSA's legislative efforts-the work that has taken me to all those state capitals. This year alone, we have reviewed more than 900 pieces of state legislation. Ultimately, we reported and actively monitored or lobbied more than 50 specific pieces of legislation, and traveled dozens of times to state capitals and localities to work on these issues. Additionally, DSA continues to actively engage in liaison activities with a variety of organizations in an effort to ensure that a network of public-policy makers, as well as private sector representatives, is available to assist us in our advocacy activities.

In two states, DSA successfully worked toward the passage of exemption language for direct sellers with regard to unemployment compensation coverage. Adverse decisions faced by several member companies in that regard were effectively overturned by our legislative efforts. We are working on a similar clarification of the worker's compensation law in New Jersey, and legislation was considered in Pennsylvania that's still pending.

We also witnessed several state proposals that would have burdened independent contractors in one way or another. In Tennessee, for example, proposed legislation would have imposed new, impractical paperwork requirements on companies using independent contractors. DSA opposed these bills as written and was responsible for their ultimate demise. Similar obstacles to the use of independent contractors were proposed-and defeated-in Missouri.

Legislation and regulation dealing with door-to-door sales activities have been on the rise in recent years. 2006 saw a spate of such legislation, dealing primarily with so-called traveling youth crews in Massachusetts, New Jersey, Wisconsin and Tennessee. Concern about the safety of the sellers, as well as their customers, led to several proposals which could have had an adverse effect on legitimate direct sellers. We anticipate seeing similar legislation introduced in localities over the next few years.

DSA and member companies continued efforts to have model anti pyramid-scheme legislation introduced and passed this year, with success in Utah and Georgia.

In Philadelphia, DSA worked with local and state authorities in support of company efforts to rebuff efforts to impose a business privilege and net profits tax on direct selling companies and individuals.

In Puerto Rico, DSA is coordinating information sharing among direct selling companies about that jurisdiction's new sales tax and its effect on direct sellers.

Of course, our federal legislative efforts in Washington, D.C., where we are based, continue. We've discussed some of those efforts in this space over the last few months (see earlier reports on the threat of the Federal Trade Commission's proposed "business opportunity" rule).

DSA proactively reaches out to legislators on both sides of the aisle on issues of importance to direct sellers, like tax matters and consumer protection. The importance of this bipartisan approach is particularly evident when we see the balance of power shift in our nation's capital and across the country.

While your "DSA workers" are the individuals charged most immediately with the responsibility of advocating for the industry, there are two other groups of individuals who deserve your attention and praise: First, the road warriors-the company executives who give unsparingly of their time and effort to work with DSA on these legislative matters. These executives represent not only their own company interests (quite ably), but also are amazingly devoted to the interests of the entire industry.

Second, the direct selling community owes a huge debt of gratitude to the legislators who have worked so tirelessly to make sure that direct selling can be a vital contributor to the lives of their constituents. For a list of these enlightened lawmakers at the federal and state levels, go to www.dsa.org/legislativerecognition/.

So, while my son may not fully understand how truly gratifying it is to be part of this industry, those of us who experience it every day know the opportunity and satisfaction it brings to millions around the world-and that's why we are committed to the work we do.