Regulation on Direct Sales Models

The Regulation on Direct Sales (“Regulation”), published in the Official Gazette dated 8 August 2025 and numbered 32980, entered into force and is significant as it introduces, for the first time in our country, specific provisions regarding direct sales systems. The Regulation has been prepared based on the amendments to the Consumer Protection Law No. 6502 (“Law”), which entered into force on 30 July 2025.

Direct sales refers to business models in which goods or services are marketed without a fixed point of sale, by independent representatives or distributors, in return for commission, bonuses, incentives or similar benefits, and where sales are carried out through direct contact with consumers. This system, which has long been evaluated under the Regulation on Contracts Concluded Outside the Business Premises, has now been granted an independent legal framework through the new regulation.

The provisions introduced by the Regulation focus on consumer protection, prevention of transformation into pyramid schemes and ensuring transparency in the sector, while at the same time aiming to promote women’s entrepreneurship and flexible working models.

Capital and Security Deposit Obligation

Previously, there was no capital or security obligation imposed on direct sales companies under the legislation. With the Regulation:

• Direct sales companies must be incorporated as capital companies,

• They must have at least TRY 10 million paid-in capital,

• They must maintain a security deposit of TRY 3 million in blocked accounts opened in banks established in Türkiye,

have been rendered mandatory. By this provision, the presence of financially strong companies in the sector is encouraged, while ensuring the financial security of consumers.

Right of Withdrawal

The Regulation grants consumers a 30-day right of withdrawal, without any justification, in respect of goods and services acquired through direct sales. This period provides broader protection compared to the 14-day period stipulated in the Law for distance contracts.

In cases of deficient information, the right of withdrawal may be extended up to one year. The categories of goods and services that constitute exceptions to the right of withdrawal have been limited in number; in particular, custom-made, perishable or hygiene-sensitive products unsuitable for return have been excluded.

Provisions Regarding Direct Sellers

The Regulation introduces special provisions concerning the admission of direct sellers to the system and their rights within it:

• Persons under the age of 18, those lacking legal capacity, company shareholders and managers as well as their first-degree relatives are prohibited from becoming direct sellers.

• Collecting mandatory financial obligations such as entry fees, package charges, or renewal fees from sellers is prohibited.

• The right of direct sellers to withdraw from the system at any time has been secured, and companies are obliged to repurchase the products upon withdrawal.

• It has been prohibited that sellers’ earnings be based on recruitment of new members; remuneration plans must be based on sales of goods or services.

• In this context, commissions, bonuses and similar benefits granted to direct sellers may not exceed 50% of the company’s annual net sales; an additional cap of 30% has been imposed for benefits linked to recruitment of new members.

This provision shall enter into force on 1 January 2026.

Information and Transparency

Direct sales companies are obliged to provide consumers with an information form via a durable medium in order to ensure the effective exercise of their rights. Furthermore, companies are required to establish an information and communication system, operating through mail, catalogues and electronic communication means, to provide detailed information on the right of withdrawal, product details, and return procedures.

Authorization Certificate and Transition Period

Direct sales companies must obtain a Direct Selling Authorization Certificate from the Ministry of Trade, valid for three years, in order to carry out activities.

For currently operating companies, a transition period has been envisaged until 30 January 2026, within which the required applications must be submitted. Companies may continue their operations until their applications are finalized.

Sanctions

The Regulation prescribes deterrent administrative fines in cases of non-compliance:

• TRY 5 million for each infringement such as failure to be incorporated as a capital company or establishment of a pyramid-based system,

• TRY 2,200 for violations such as collecting prohibited fees from sellers or restricting the consumer’s right of withdrawal,

• TRY 1 million if the required information system is not established within a three-month period.

The administrative fines shall be increased annually in accordance with the revaluation rate.

Conclusion

Direct sales systems, which offer flexible working opportunities and are of particular significance for women entrepreneurs, have become widespread in our country. However, the risks of pyramid sales and consumer grievances have long highlighted the need for regulation.

The new Regulation aims both to protect consumer rights and to ensure a reliable and transparent functioning of the sector, while imposing significant obligations on companies such as capital, security deposit and authorization certificate. In this regard, it is anticipated that the corporate structure of the direct selling sector will be strengthened, and the market will become safer.