DSAM Raises the Bar on Ethical Direct Selling in Response to Rise in Social Commerce

KUALA LUMPUR, 8th May 2026 — The Direct Selling Association of Malaysia (DSAM) has officially unveiled the 4th Edition of its Code of Conduct, marking a significant update to reflect the rapid rise of digital and social commerce. First introduced in 1978, the Code continues to serve as a cornerstone of ethical, transparent, and consumer-centric business practices within the direct selling industry.

The revised Code was overseen by DSAM’s Independent Code Administrator, Tan Sri Dr Noor Hisham Abdullah, and aligns with global standards recognised by the World Federation of Direct Selling Associations (WFDSA). It introduces clearer definitions for digital transactions, updated criteria for marketable goods, and strengthened appeal and enforcement procedures to ensure accountability among members.

“Every company and industry leader must uphold this Code as a daily standard of ethical conduct, not merely a compliance requirement,” said Tan Sri Noor Hisham, emphasising the shared responsibility of leadership, distributors and consumers in upholding ethical practices and strengthening industry trust.

DSAM President Zaihan Arifin highlighted that the updated Code also addresses the growing trends in consumer purchasing behaviour, particularly through social commerce channels. “DSAM is working closely with the Ministry of Domestic Trade and Cost of Living (KPDN) and relevant agencies to raise the bar on ethical direct selling practices,” he added.

The Code reinforces DSAM’s public commitment to ethical self-regulation, setting members apart through clear standards on transparency, consumer protection, after-sales support and online conduct. It also strengthens safeguards for both consumers and distributors by clarifying business and compensation practices across all platforms.

The direct selling sector contributed RM34.4 billion to Malaysia’s economy in 2024, recording 7.4% year-on-year growth. According to WFDSA, Malaysia ranks fifth globally and third in Asia-Pacific, while leading the world in market penetration at 2.28%