The Direct Selling Association (DSA) in the United Kingdom is calling for stronger adoption of recognized industry standards across the UK to regulate AI-generated marketing content, calling the situation “increasingly urgent.”
The rise of AI, social commerce and a demand for flexible earning opportunities to supplement household incomes, in combination with a 50% cut to the Chartered Trading Standards Institute and its staffing over the past decade, have created challenges for the sector.
“The way products are discovered, marketed and purchased has changed dramatically in recent years, and consumers are increasingly engaging with brands through social platforms, while businesses are making greater use of AI-powered tools,” said Susannah Schofield OBE, DSA Director General. “While AI is creating significant opportunities for legitimate direct-to-consumer businesses, it is also making it easier than ever for rogue players to appear legitimate through the creation of seemingly authentic product descriptions, earnings claims or health-related content that may not be legally compliant. The sheer volume of such material can make it challenging for already-stretched consumer bodies to keep up, increasing the importance of transparency, accountability and consumer trust.”
The UK DSA reported that this problem extends to overseas direct selling organizations, stating that a recent complaint found a UK consumer who had invested more than £15,000 in one of these companies. This complaint led to a UK DSA investigation and ultimately a suspension of the individual involved and a settlement for the consumer, but these external pressures are not the only challenge.
“Our concerns are not limited to rogue operators entering the market,” Schofield said. “There remain a number of established businesses operating within the sector that have yet to adopt recognized industry Codes of Conduct.”
The Association launched a campaign for industry standards in January 2024, but AI-enabled marketing techniques and a rapid rise of social commerce has led the organization to call for wider adoption of the Codes of Conduct, which “go above and beyond UK consumer law” to offer higher levels of protection to both customers and independent direct sellers and outline clear requirements regarding ethical business practices, transparent marketing, fair treatment of independent sellers, customer protections and effective complaint handling procedures.
“The Association believes the demand for flexible earning opportunities is likely to remain strong in the years ahead,” the UK DSA wrote in a statement. “However, it warns that as social commerce grows and technology such as AI reduces the barriers to market entry, consumers and independent sellers alike must be able to identify businesses that operate to the highest standards. As a result, it is urging consumers and prospective independent sellers to look for the Direct Selling Association logo when choosing a direct selling company, providing reassurance that the business has been independently assessed against the industry’s Codes of Conduct.”
The UK DSA continues to vet companies, granting membership only after a rigorous audit process, and performs regular monitoring to ensure a consistent demonstration that policies, procedures and business practices maintain standards.
“The direct selling sector has long provided a valuable route to entrepreneurship and flexible earning for hundreds of thousands of people across the UK,” Schofield said. “As our industry continues to evolve, maintaining public confidence must remain a shared priority. Our message is simple: innovation and growth should go hand-in-hand with high standards. We want to see more companies embrace the industry’s Codes of Conduct and demonstrate their commitment to doing business responsibly. That commitment benefits consumers, independent sellers and the wider reputation of the sector as a whole.”
