The Regulation on Direct Selling ("Regulation"), published in the Official Gazette dated 8 August 2025, separates the provisions on direct sales from the already existing Regulation on Contracts Established Outside the Workplace and introduces an independent set of rules. This new Regulation brings comprehensive provisions regarding direct selling systems, companies, and sellers; setting out in detail the participation requirements, obligations, and procedures and principles concerning the right of withdrawal.
Below is a summary of the key innovations and obligations introduced by the Regulation.
1. Scope of the Regulation:
The Regulation has been prepared based on Articles 47/A and 84 of the Consumer Protection Law No. 6502 ("Law") and shall apply to direct selling systems, direct selling companies, and direct sales.
If the direct seller makes distance sales or intermediates such sales through a self-established system or intermediary service provider platforms, only the obligation to indicate the seller number shall apply to such sales; other provisions of the Regulation shall not be applicable.
Moreover, sales of goods or services made to consumers by third parties who are neither direct selling companies nor direct sellers, and where the direct seller does not obtain any benefit within the profit plan, are excluded from the scope of the Regulation.
2. Direct Selling and Definitions of Certain Key Concepts in the Regulation
The Regulation defines core concepts such as direct selling, direct seller, direct selling company, direct selling system, and direct selling authorization certificate in detail:
- Direct Selling: A type of sale where the consumer purchases goods or services from the direct seller or through a direct selling company they act as an intermediary for and the direct seller earns benefits.
- Direct Seller: A natural or legal person who introduces and sells goods or services to consumers within the direct selling system, or intermediates sales from the direct selling company, and in return earns commissions, bonuses, incentives, or other benefits under the profit plan.
- Direct Selling Company: A seller or provider who sells goods or services to consumers within the scope of the direct selling system.
- Direct Selling System: A system established by the direct selling company in which direct sellers (independent representatives, distributors, consultants, etc.), who are not employed under an employment contract, operate in return for commissions, bonuses, or other benefits, selling or promoting goods or services to consumers.
- Direct Selling Authorization Certificate: The official certificate issued by the General Directorate of Consumer Protection and Market Surveillance ("Directorate"), mandatory for companies to engage in direct selling activities.
3. Principles Applicable to Direct Selling Systems Under Regulation
The Regulation introduces several principles and rules applicable to direct selling. As per the Regulation:
- Goods or services offered through direct selling systems must be marketable and sellable to consumers. Goods/services prohibited by special legislation, those explicitly banned from direct sales, capital market instruments as defined under the Capital Markets Law, and crypto-assets cannot be sold through direct selling.
- Individuals must not be forced to join the system through misleading promises, pressure, or deceptive practices.
- Earnings must be based on sales of goods or services to consumers, not on recruiting new sellers.
- Excluding retail profit, the total amount of commissions, bonuses, and similar benefits provided by the direct selling company to direct sellers shall not exceed fifty percent (50%) of the company's annual net sales of goods or services subject to direct selling; likewise, excluding retail profit, the total amount of commissions, bonuses, incentives, and rewards paid by the direct selling company arising from the recruitment of new direct sellers into the system shall not exceed thirty percent (30%) of all benefits distributed in the relevant calendar year.
4. Principles Applicable to Direct Selling Companies Under Regulation
Under the Regulation, direct selling companies must (i) be established as an equity company, (ii) have a paid-in capital of at least 10 million TRY, (iii) deposit an amount of 3 Million TRY into a blocked time deposit account, demand deposit account, special current account, participation fund account, foreign currency deposit account, or precious metals account opened with banks established in Türkiye, and (iv) obtain a direct selling authorization certificate from the Directorate.
The Regulation also sets forth in detail the documents to be submitted to the Directorate and the procedures to be followed in applications for obtaining a sales authorization certificate.
Upon the assessment of the General Directorate, an authorization certificate shall be issued to the direct selling company found eligible, and such company shall be published on the website of the Ministry of Trade ("Ministry").
The authorization certificate issued by the General Directorate is valid for a period of three (3) years, and the principles regarding its renewal and termination are also regulated under the Regulation.
Direct selling companies are further obliged to establish a system allowing consumers to communicate requests and access information remotely (e.g., post, catalogue, phone, fax, email, SMS, internet). The Regulation also addresses in detail the matters to be taken into consideration when setting up the system.
5. Provisions Concerning Direct Sellers
The Regulation lays down both the rules applicable to direct sellers and the provisions governing their participation in the direct selling system. Within this scope, it sets out the fundamental principles concerning the admission, withdrawal, and responsibilities of direct sellers. Accordingly, certain groups of persons are prohibited from entering the system, unjust or unnecessary payments from sellers are prohibited, and sellers are granted an unconditional right of withdrawal within the first thirty (30) days.
Direct sellers are responsible for ensuring the protection of consumer rights and for carrying out sales activities in accordance with the principles set by the company; companies are held jointly liable for the obligations of sellers towards consumers. Accordingly, direct sellers must comply with the procedures and principles set out in the Regulation regarding their participation in the system.
In addition, if the subject matter of the direct sale is a service, such service must be performed on the date specified in the relevant form. If the subject matter is a good, the delivery date of such good may not exceed thirty (30) days from the date of sale indicated in the information form.
6. Right of Withdrawal in Direct Sales
The Regulation also sets forth the procedures and principles regarding the exercise of the right of withdrawal in direct sales. Accordingly, without prejudice to the pre-contractual information stipulated under the relevant legislation and contract provisions, it is mandatory to provide the consumer, in writing or through a permanent data storage, with a form containing certain information. This form must include the essential characteristics of the goods or services sold, the price including taxes, delivery costs, the identity and contact details of the company and the seller, the sales or delivery date, the terms of the right of withdrawal, and the authorities to which the consumer may apply in case of a dispute. If the information form is not provided, or is provided incompletely or incorrectly, consumers shall not be bound by the thirty (30) day period to exercise their right of withdrawal. In such a case, however, the withdrawal period shall, in any event, expire one year after the statutory withdrawal period has ended.
7. Entry into Force and Transitional Provisions
"The provisions of the Regulation stipulating that, excluding retail profit, the benefits provided to direct sellers shall not exceed fifty percent (50%) of the annual net sales, and that the benefits arising from the recruitment of new sellers shall not exceed thirty percent (30%) of all benefits distributed in the relevant calendar year, shall enter into force on 1 January 2026; all other provisions entered into force on the date of publication of the Regulation.
Direct selling companies operating prior to the publication of the Regulation may continue their activities until the conclusion of their authorization certificate applications; however, they shall be obliged to bring their structure and activities into compliance with the Regulation and apply for an authorization certificate by no later than 30 January 2026.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
