I. Introduction
At the outset, it is useful to note that the business-friendly environment in Turkey attracts quite a lot of attention from entrepreneurs. Turkish national authorities have improved more effective mechanisms by designing new mechanisms over the years. Trading facilitator mechanisms are considered as an important component in the investment system. From that sense, the available article basically aims at examining the potential role of the “direct sale mechanism” instituted by Turkey as a critical contribution to Turkish markets.
In doing this research, Chapter II will attempt to understand the circumstances requiring the need for a newly-born “direct sale mechanism”. Chapter III is intended to analyze recent developments within the jurisdiction of Turkey for the adoption of “direct sale mechanism”. Details about the said mechanism will be investigated by addressing the legal revision to the Law on Consumer Protection Numbered 6502. Core observations about the enforcement of the new system will also be made. And finally the present paper will end with concluding comments on the potential impact of new regulation.
With regard to the methodology, the available paper will completely focus on the nature and potential impact of the new legislative change in Turkey. Therefore the available article is designed as a case study rather than a comparative work.
For the purpose of the present work, “direct sale”is used to refer to selling direct goods and services to the consumer without any assistance by intermediaries. It is useful to indicate at this juncture that the critical feature of direct sale mechanism is the lack of any intermediaries or distributorships between end-users and sellers.
II. Historical Background for the Advancement of Direct Sale Mechanism
It is fundamental to emphasize at the beginning that there has been an ever growing interest in Türkiye [Turkey] from domestic entrepreneurs, foreign businessmen and overseas investors. Indeed, emerging business opportunities and the revised decisions of landmark international organizations on Türkiye [Turkey] has a crucial impact upon increasing the scale of such impact.Accordingly, Turkish policy and law-makers make amendments to the Turkish legal framework with the intention of meeting such growing interest in Turkey.
Recent developments in the field of investment have led to a renewed interest in increasing direct trade tools between consumers and sellers. Maximizing the profitability of sellers depends on eliminating all intermediaries and reaching out directly to buyers. A new amendment changing the Law on Consumer Protection Numbered 6502 added a new article for the establishment of a “direct sale mechanism’. The new article came into force as of October 24, 2024. The Law Numbered 7529 revising the Law on Consumer Protection Numbered 6502 came into force after the circuit of Official Gazette dated October 24, 2024.
III. Potential Implications of the Implementation of Direct Sale Mechanism in Turkey
This part of the available study will highlight main points of the legal revision. New Article 47(A) of the Law on Consumer Protection mainly regulates the meaning of direct sale mechanism in Turkey. According to the said Article, direct sale mechanism implies a mechanism in which direct sellers, who are established by a direct sales company and are not employed under an employment contract, but operate as independent representatives, distributors, consultants and similar names in return for benefits such as commissions, bonuses, incentives and rewards by marketing goods or services to consumers.
It is beyond doubt that such description is a comprehensive reference covering the meaning of direct sale and direct seller as well as direct sale mechanism. In addition to that, Article further goes on identifying obligations of companies and rights of consumers.
In terms of direct sale company responsibilities, it is essential to stress that the Article 47 (A) identifies all follow-up obligations for direct sale companies. Indeed, first of all, only capital companies are authorized to act as a direct sale in Turkey. It means that a direct sale company can be established only as a limited liability company and|or a joint stock company.
Second of all, direct sale mechanisms shall not be established based on a pure seller profit aiming at gaining new direct sellers, but shall be based on the sale of goods or services to consumers and should comply with other principles that will be declared by the upcoming regulation.
Last but least, no fee or debt document under the names of renewal, package, fee, membership fee or similar that does not include the goods or services intended to be sold to consumers. It necessarily follows that transparency will be an essential component of Turkish direct sale mechanism.
In terms of consumer rights, the new Article also is intended to formulate direct sale mechanisms respecting consumer rights. First, all consumers are granted the right to be informed properly by the direct seller company for the relevant goods and services. Second, consumers are given the right to withdraw from the contract within thirty days without any reason and without paying any penalty.
IV. Conclusion
Overall, the key objective of the present article was to review the inclusion of direct sale mechanisms into the Turkish regulatory ecosystem. Several attempts from academics have been made to underscore the advantages of the direct sale mechanism so far. There is a growing recognition about underlying benefits of direct sale mechanism including flexibility, convenience, remote work, trade opportunities remotely and high customer satisfaction
Having regard to the above, it is beyond doubt that the revision is so new and it is too early to provide a comprehensive evaluation about all economic and social impact of direct selling mechanisms. Nonetheless, it becomes clear that the amendment is codified by seeking to strike a balance between the rights of consumers and the responsibilities of direct sellers. Additionally, our findings suggest that an upcoming Regulation will pave the way for the full alignment of the direct sale mechanism into Turkish legal framework on the way forward. The Regulation articles must be assessed carefully by all legal practitioners for the way forward.
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