PROGRAM. October 22, 2014 PLENARY MEETING ROUND TABLE. October 23, 2014 VISIT TO THE ORIFLAME MANUFACTURING FACILITIES IN NOGINSK, MOSCOW REGION

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3 PROGRAM October 22, 2014 PLENARY MEETING Opening of the Conference Opening remarks: Tamara Shokareva, President of the Direct Selling Association of Russia Actual Problems in Consumer Rights Protection Sphere Svetlana Mukhina, Deputy Head of Consumer Rights Protection Department of the Federal Service for Supervision of Consumer Rights Protection and Human Welfare Problems of SME Taxation Sergey Shtogrin, Auditor of Accounts Chamber of the Russian Federation Business Client Oriented Approach in Terms of Lessening of Consumer Legal Protection in the Russian Federation Dmitry Yanin, Chairman of the International Confederation of Consumer Societies (CONFOP) Briefing with a special guest: Mikhail Emelyanov, First Deputy Chairman of the RF State Duma Committee on Economic Policy, Innovative Development and Entrepreneurship Quality of Life, Consumer Rights Protection and Technical Regulation Petr Shelisch, Chairman of the Consumer Union of the Russian Federation Results of the Survey of Direct Selling Association of Russia Member Companies Salesforce Olga Tretyak, Professor, Head of Department of the Higher School of Economics Review of Global Direct Selling Industry Tamuna Gabilaia, Executive Director of the World Federation of Direct Selling Associations (WFDSA) ROUND TABLE Moderators: Tamara Shokareva, President of the Direct Selling Association of Russia Diana Sork, Direct Selling Association of Russia Code Administrator, Chair of Moscow Region Bar Power of Law October 23, 2014 VISIT TO THE ORIFLAME MANUFACTURING FACILITIES IN NOGINSK, MOSCOW REGION 1

4 LIST OF PARTICIPANTS Antonina Alekhina Head Consumer Rights Protection Division Voronezh Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Oksana Anpilogova Deputy Head Consumer Rights Protection Division Orel Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Olga Artamonova Chief Expert Railway Transport Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Andrey Artemyev Head Yekaterinburg Municipal Consumer Protection Center President Russian Consumer Rights Advocates League Tatyana Balysh Legal Counsel Avon Beauty Products Company Nina Bogatyr Entrepreneur Moscow Sergey Bolshakov Director Corporate Affairs, Russia & CIS Oriflame Anna Brykun Expert Direct Selling Association of Russia Alexander Chekarev Government Relations Manager Amway Marina Chernova Head of Social Health Programs International Confederation of Consumer Societies (CONFOP) Timur Chizhov Legal Counsel Nikken Vladislav Davankov Vice-President Faberlic Vladimir Denisenko Chairman Khabarovsk City Consumer Protection Society 2

5 LIST OF PARTICIPANTS Vasiliy Dmitriev Executive Partner Media Business Solutions Alexander Egorenko Chief Expert Consumer Rights Protection Division Karelia Republic Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Mikhail Emelyanov First Deputy Chairman RF State Duma Committee on Economic Policy, Innovative Development and Entrepreneurship Marina Eremeeva Deputy Head Consumer Rights Protection Division Novgorod Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Tatiana Fedirko Chair Rostov-on-Don Consumer Rights Protection Union Valentina Fedotova Deputy Head Consumer Rights Protection Division Saint-Petersburg Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Antonina Fedukova Deputy Head Consumer Rights Protection Division Smolensk Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Nadezhda Fedunova Leading Expert RF State Duma Elena Fetisova Chief Expert Consumer Rights Protection Division Ryazan Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Tamuna Gabilaia Executive Director World Federation of Direct Selling Associations (WFDSA) Tatyana Garmanova Deputy Head Consumer Rights Protection Division Komi Republic Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Elena Gerasimova Head of Expert Service Moscow Consumer Protection Society 3

6 LIST OF PARTICIPANTS Natalia Getz Expert Direct Selling Association of Russia Nadezhda Golovkova Chair Moscow Consumer Protection Society Alexander Grishin Head of Legal Department Tupperware Yuliya Grunicheva Head Consumer Rights Protection Division Vologda Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Marina Ilyinskaya Expert Direct Selling Association of Russia Olga Ivanova Legal Counsel Florange Svetlana Kaidash Entrepreneur Krasnodar Olga Kalinina Expert Direct Selling Association of Russia Elena Khetagurova Head Consumer Rights Protection Division Belgorod Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Rail Khismatullin President Tentorium Svetlana Kitaeva Expert Direct Selling Association of Russia Lubov Kondrashova Head of Consumer Rights Protection Department Khanty-Mansiysk Autonomous District of Yugra Region Konstantin Korobtsov Director Tiens Larisa Koroleva Entrepreneur Saint-Petersburg 4

7 LIST OF PARTICIPANTS Ksenia Kozlova Chief Expert of Consumer Rights Protection Division Yaroslavl Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Galina Kozlovskaya Chair Saint-Petersburg and Leningrad Region Consumer Society Maxim Krylov Expert Direct Selling Association of Russia Tatyana Kudryavtseva Deputy Head Department of Consumer Protection in the Field of Trade and Organization of Monitoring of Compliance with Regulations for Sales of Goods and Rendering of Services Federal Service for Supervision of Consumer Rights Protection and Human Welfare Tatyana Kukhtina Deputy Head Consumer Rights Protection Division Kursk Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Natalia Kulik General Director Jaffra Cosmetics Konstantin Kulinich President Direct Selling Association of Kazakhstan Elena Kuzmina Chief expert Consumer Rights Protection Division Tambov Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Elena Kuznetzova Supreme Coordination Council International Confederation of Consumer Societies (CONFOP) Oleg Leonov Expert Direct Selling Association Alexander Lomovtsev Deputy Head of Consumer Rights Protection Division Tula Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Yulia Malinovskaya Specialist Morinda UK Limited 5

8 LIST OF PARTICIPANTS Alexander Monakhov Consumer Rights Protection Division Moscow Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Svetlana Mukhina Deputy Head Consumer Rights Protection Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Janett Nazirova Director Mirra-M Natalya Novik Deputy Head Consumer Rights Protection Division Kaluga Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Alexander Onischuk President Association of Trading Companies and Manufacturers of Consumer Electronic and Computer Equipment (RATEK) Svetlana Pavlova Consumer Rights Protection Division Kostroma Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Marina Pashneva Entrepreneur Moscow Region Maria Peregudova Deputy Head Consumer Rights Protection Division Tver Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Tatyana Perova Chief Expert of Consumer Rights Protection Division Vladimir Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Ludmila Petrischeva Head Corporate Client Department Accord Post Ludmila Petrova Chair Moscow Region Coordination Center for Independent Expertise and Consumer Rights Protection Valery Petropavlovsky Chairman Supreme Coordination Council International Confederation of Consumer Societies (CONFOP) 6

9 LIST OF PARTICIPANTS Oleg Podboronov Secretary General Direct Selling Association of Russia Tatiana Puchkova Chair of the Board Russian Perfumery and Cosmetics Association Larisa Pyshieva Head of Consumer Rights Protection Division Pskov Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Evgeny Rabinovich Chairman Omsk City Consumer Union Shield Oleg Ratnikov Expert Direct Selling Association of Russia Svetlana Revina Head Client Service Nu Skin Enterprise RS Nadezhda Satarova Chair Saratov Consumer Rights Protection Public Institution Artiek Seitkalieva Head of Non-Profit Organization Consumer Rights Protection Society (Kazakhstan) Code Administrator of the Direct Selling Association of Kazakhstan Tatiana Shalushkina Chair Vologda City Consumers Union Petr Shelisch Chairman Consumers Union of the Russian Federation Tamara Shokareva Executive Director Mary Kay Russia President Direct Selling Association of Russia Sergey Shtogrin Auditor Accounting Chamber of the Russian Federation Lidia Sidorova Chair Penza Regional Consumer Rights Protection Society Svetlana Solovyeva Leading Legal Counsel LR RUS 7

10 LIST OF PARTICIPANTS Diana Sork Code Administrator of the Direct Selling Association of Russia Chair of Moscow Regional Bar Power of Law Maria Stepanova Expert Direct Selling Association of Russia Olga Terekhova Government Relations Manager Herbalife International RS Olga Tikhonovskaya Deputy Head of Vyborg Division Leningrad Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Ludmila Titlinova Deputy Head of Consumer Rights Protection Division Lipetsk Regional Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Dmitry Tolmachev Chairman Perm Regional Consumer Rights Protection Society Olga Tretyak Professor Head of Department State University «Higher School of Economics» Galina Ulantseva Deputy Executive Director Association of Perfumery, Cosmetics and Household Chemistry Manufacturers Dmitry Yanin Chairman International Confederation of Consumer Societies (CONFOP) Marina Yurieva Head of Marketing Department CIEL parfum Zhang Zhihong General Director Tiens Vladimir Zyablitsev Chairman Magnitogorsk Non-Governmental Association «Consumer Rights Protection Society» 8

11 Conference presidium Conference participants 9

12 Sergey Shtogrin Auditor Accounting Chamber of the Russian Federation Dmitry Yanin Chairman International Confederation of Consumer Societies (CONFOP) 10

of Consumer Rights Protection and Human Welfare Petr

13 Svetlana Mukhina Deputy Head of Consumer Rights Protection Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Petr Shelisch Chairman Consumers Union of the Russian Federation 11

and Entrepreneurship Olga Tretyak Professor Head of

14 Mikhail Emelyanov First Deputy Chairman RF State Duma Committee on Economic Policy, Innovative Development and Entrepreneurship Olga Tretyak Professor Head of Department State University «Higher School of Economics» 12

Code Administrator of the Direct Selling Association

15 Tamuna Gabilaia Executive Director World Federation of Direct Selling Associations (WFDSA) Diana Sork Code Administrator of the Direct Selling Association of Russia Chair of Moscow Regional Bar Power of Law 13

16 Vladimir Denisenko Chairman of Khabarovsk City Consumer Protection Society Evgeny Rabinovich Chairman of Omsk City Consumer Union Shield Registration of conference participants 14

Supervision of Consumer Rights Protection and Human Welfare Olga Artamonova Chief Expert of Railway Transport

17 Tatyana Kudryavtseva Deputy Head of Department of Consumer Protection in the Field of Trade and Organization of Monitoring of Compliance with Regulations for Sales of Goods and Rendering of Services Federal Service for Supervision of Consumer Rights Protection and Human Welfare Olga Artamonova Chief Expert of Railway Transport Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare Conference participants 15

Manager, Herbalife International RS Alexander Chekarev,

18 Sergey Bolshakov, Director, Corporate Affairs Russia & CIS, Oriflame Olga Terekhova, Government Relations Manager, Herbalife International RS Alexander Chekarev, Government Relations Manager, Amway Conference participants 16

19 Galina Kozlovskaya Chair Saint-Petersburg and Leningrad Region Consumer Society Rail Khismatullin President Tentorium 17

Valery Petropavlovsky, Chair of Supreme Coordination Council, International Confederation of Consumer Societies Tamara Shokareva, President of Direct Selling Association of

Moscow Larisa Koroleva, Entrepreneur, Saint-Petersburg Tatiana Fedirko, Chair of Rostov-on-Don Consumer Rights Protection Union Tamara Shokareva, President of Direct Selling

20 Valery Petropavlovsky, Chair of Supreme Coordination Council, International Confederation of Consumer Societies Tamara Shokareva, President of Direct Selling Association of Russia Mikhail Emelyanov, First Deputy Chairman of the RF State Duma Committee on Economic Policy, Innovative Development and Entrepreneurship Nina Bogatyr, Entrepreneur, Moscow Larisa Koroleva, Entrepreneur, Saint-Petersburg Tatiana Fedirko, Chair of Rostov-on-Don Consumer Rights Protection Union Tamara Shokareva, President of Direct Selling Association of Russia Svetlana Mukhina, Deputy Head of Consumer Rights Protection Department of the Federal Service for Supervision of Consumer Rights Protection and Human Welfare 18

for Supervision of Consumer Rights Protection and Human Welfare

21 Elena Fetisova, Chief Expert of the Consumer Rights Protection Division of the Ryazan Regional Department of the Federal Service for Supervision of Consumer Rights Protection and Human Welfare Marina Pashneva, Entrepreneur, Moscow Region Conference participants 19

of Kazakhstan Dmitry Yanin, Chairman of International Confederation of Consumer Societies (CONFOP) Konstantin

22 Tamara Shokareva, President of Direct Selling Association of Russia Artiek Seitkalieva, Head of Non-Profit Organization Consumer Rights Protection Society (Kazakhstan), Code Administrator of the Direct Selling Association of Kazakhstan Dmitry Yanin, Chairman of International Confederation of Consumer Societies (CONFOP) Konstantin Kulinich, President of Direct Selling Association of Kazakhstan Ludmila Petrischeva Head of Corporate Client Department, Accord Post 20

Natalya Novik, Deputy Head of the Consumer Rights Protection Division of the Kaluga Regional Department of the Federal Service for Supervision of Consumer Rights

Service for Supervision of Consumer Rights Protection and Human Welfare Alexander Onischuk, President of the Association of Trading Companies and Manufacturers of

23 Natalya Novik, Deputy Head of the Consumer Rights Protection Division of the Kaluga Regional Department of the Federal Service for Supervision of Consumer Rights Protection and Human Welfare Valentina Fedotova, Deputy Head of the Consumer Rights Protection Division of the Saint-Petersburg Regional Department of the Federal Service for Supervision of Consumer Rights Protection and Human Welfare Alexander Onischuk, President of the Association of Trading Companies and Manufacturers of Consumer Electronic and Computer Equipment (RATEK) Galina Ulantseva, Deputy Executive Director of the Association of Perfumery, Cosmetics and Household Chemistry Manufacturers 21

Russia Marina Yurieva, Head of Marketing Department, CIEL parfum Andrey Artemyev Head of

24 Zhang Zhihong, General Director, Tiens Tamuna Gabilaia, Executive Director of World Federation of Direct Selling Associations (WFDSA) Tamara Shokareva, President of Direct Selling Association of Russia Marina Yurieva, Head of Marketing Department, CIEL parfum Andrey Artemyev Head of Yekaterinburg Municipal Consumer Protection Center President of Russian Consumer Rights Advocates League 22

25 Nadezhda Satarova Chair of Saratov Consumer Rights Protection Public Institution Conference participants 23

26 Conference participants at Oriflame manufacturing facilities in Noginsk Conference participants at Oriflame manufacturing facilities in Noginsk 24

27 Conference participants at Oriflame manufacturing facilities in Noginsk Conference participants at Oriflame manufacturing facilities in Noginsk 25

28 PRESENTATION OF SERGEY SHTOGRIN 26

29 PRESENTATION OF SERGEY SHTOGRIN 27

30 PRESENTATION OF SERGEY SHTOGRIN 28

31 PRESENTATION OF SERGEY SHTOGRIN 29

32 PRESENTATION OF SERGEY SHTOGRIN 30

33 PRESENTATION OF SERGEY SHTOGRIN 31

34 PRESENTATION OF OLGA TRETYAK 32

35 PRESENTATION OF OLGA TRETYAK 33

36 PRESENTATION OF OLGA TRETYAK 34

37 PRESENTATION OF OLGA TRETYAK 35

38 PRESENTATION OF OLGA TRETYAK 36

39 PRESENTATION OF OLGA TRETYAK 37

40 PRESENTATION OF OLGA TRETYAK 38

41 PRESENTATION OF OLGA TRETYAK 39

42 PRESENTATION OF OLGA TRETYAK 40

43 PRESENTATION OF OLGA TRETYAK 41

44 PRESENTATION OF OLGA TRETYAK 42

45 PRESENTATION OF OLGA TRETYAK 43

46 PRESENTATION OF OLGA TRETYAK 44

47 PRESENTATION OF OLGA TRETYAK 45

48 PRESENTATION OF TAMUNA GABILAIA 46

49 PRESENTATION OF TAMUNA GABILAIA 47

50 PRESENTATION OF TAMUNA GABILAIA 48

51 PRESENTATION OF TAMUNA GABILAIA 49

52 PRESENTATION OF TAMUNA GABILAIA 50

53 PRESENTATION OF TAMUNA GABILAIA 51

54 PRESENTATION OF TAMUNA GABILAIA 52

55 PRESENTATION OF TAMUNA GABILAIA 53

56 PRESENTATION OF TAMUNA GABILAIA 54

57 PRESENTATION OF TAMUNA GABILAIA 55

58 PRESENTATION OF TAMUNA GABILAIA 56

59 PRESENTATION OF TAMUNA GABILAIA 57

60 REPORT On October 22-23, 2014 the X International Conference «Entrepreneur and Consumer Steps Towards Each Other» was held in Moscow. The Conference was conducted within the framework of the Consumer Education and Protection Initiative (CEPI) program under the support of the Asia-Pacific Economic Cooperation (APEC) and the World Federation of Direct Selling Associations (WFDSA). The Conference was organized by the Direct Selling Association of Russia (RDSA) and the International Confederation of Consumer Societies (CONFOP). 100 representatives of business circles, representatives of legislative and executive state power bodies, entrepreneurs as well as representatives of the Federal Service for Supervision of Consumer Rights Protection and Human Welfare (Rospotrebnadzor) and consumer organizations from Belgorod, Kaluga, Karelia Republic, Khabarovsk, Khanty- Mansiysk, Komi Republic, Kostroma, Kursk, Lipetsk, Magnitogorsk, Moscow, Moscow region, Omsk, Orel, Penza, Pskov, Rostov-on-Don, Ryazan, Saint-Petersburg, Saratov, Smolensk, Tambov, Tula, Tver, Velikiy Novgorod, Vladimir, Vologda, Voronezh, Vyborg, Yaroslavl and Yekaterinburg took part in the Conference. Also representatives of national DSA from Kazakhstan participated in the Conference. The conference was devoted to the discussion of the following problems:: Problems of small business taxation.. Problems of consumer rights on the consumer market and on distance and direct sales market. Problems of business customer oriented approach in terms of lessening of consumer legal protection in the Russian Federation. Problems of self-regulation on the consumer market. Problems of consumer rights protection and technical regulation. In her opening remarks Tamara Shokareva, President of the Direct Selling Association of Russia, reported that the X International Conference «Entrepreneur and Consumer Steps Towards Each Other» was conducted within the framework of the Consumer Education and Protection Initiative (CEPI) program under the support of the World Federation of Direct Selling Associations (WFDSA). Svetlana Mukhina, Deputy Head of Consumer Rights Protection Department Federal Service for Supervision of Consumer Rights Protection and Human Welfare, in her presentation informed the participants that Federal Service for Supervision of Consumer Rights Protection and Human Welfare was developing a single legislative act, regulating consumer rights in trade and service industry. We are expecting global changes in the consumer rights protection sphere. We have a goal to codify consumer rights protection legislation in midterm perspective to develop a single Consumer Code Svetlana Mukhina explained. In the course of her speech she also touched the problems of consumer rights protection at distance and direct sales. Sergey Shtogrin, Auditor of Accounts Chamber of the Russian Federation, traversed the problems of small business taxation in the Russian Federation and reported about the Federal Laws, adopted by the RF Government in 2013/2014, that affected the small business. The speaker also informed about the development of a new procedure of paying the subsidies in terms of federal program of supporting SME. In his speech Dmitry Yanin, Chairman of the International Confederation of Consumer Societies, reasoned about the existing problems in the consumer rights protection sphere, about numerous of amendments inserted into the consumer rights protection legislation and their real advantages, about how necessary was becoming the support 58

61 REPORT of those market segments, where self-regulation is not a way to avoid regulation. The speaker emphasized: If we can t change the legislation, then we should support those segments, where business is ready for the development of consumer rights protection voluntary initiatives. DSA is for sure one of such associations that is acting according to the Code, which has already determined relations between consumer and seller for many years. Mikhail Emelyanov, First Deputy Chair of the RF State Duma Committee on Economic Policy, Innovative Development and Entrepreneurship, in his speech talked about actual problems, that worry society prohibition to store personal data of Russian citizens outside of the RF territory, amendments to the Federal Law on mass media, that limits the participation of foreigners in this sphere, social support of population in terms of volatile economic environment, measures taken to stabilize tourist market and tourist protection from risks related to tour operator instability. Mr. Emelyanov proposed to conduct the Round Table in the RF State Duma that would be devoted to the consumer rights protection problems. He said that Conference participants could elaborate draft amendments to the legislation and proposed to consider those amendments at the Round Table. The presentation of Petr Shelisch, Chairman of the Consumer Union of the Russian Federation, was devoted to such questions as the quality of life, consumer rights protection and technical regulation. In the course of his speech Mr.Shelisch reasoned about the place, taken by consumer rights protection in the solving of human most important problems quality of life, challenges faced by modern consumers and the existing ways to solve them. Olga Tretyak, Professor, Head of Department of State University «Higher School of Economics», presented the results of the research of RDSA member companies independent contractors. Such research is being held once in 3 years. About 5600 of respondents from all federal districts took part in it in Results of this research show us a huge potential of this field. From one side the audience of the contractors is growing younger that demonstrates the new opportunities for this industry. From another side one third of respondents are collaborating with Association members for more than 5 years that proves the attractiveness of the industry and the fact that the respondents themselves understand the direct sales specificity and the way of communication with the consumers. High status of the entrepreneurs involved in the industry proves the fact that more than 60% of the direct sales have higher education, - summarized Mrs.Tretyak. Tamuna Gabilaia, Executive Director of the World Federation of Direct Selling Associations, made a presentation on the development of the global direct selling industry in ROUND TABLE Moderators: Tamara Shokareva, President of the Direct Selling Association of Russia Diana Sork, DSA of Russia Code Administrative, Chair of Moscow Region Bar Power of Law The key topics of discussions within the frame of the Round Table were: Problems of consumer rights protection in the direct selling industry. Problems of consumer education of the Russian population. Problems of self-regulation on the consumer market. Problem of unethical business practices of a number of direct selling companies that are not members of DSA of Russia. 7 journalists representing leading Russian mass media covered the work of the Conference. As a result the following media coverage was received: 5 articles in mainstream media, 12 information agencies reports and 52 articles in Internet media. 59

62 REPORT On October 23, 2014 within the framework of the X International Conference «Entrepreneur and Consumer Steps Towards Each Other» the representatives of consumer rights protection societies visited the Oriflame manufacturing facilities in Noginsk that will be put into operation in the nearest future. That excursion confirmed the fact that RDSA member companies use modern and innovative technology in its products, pay more attention to its quality and strive to meet the needs of consumers. The program «Customer Education and Protection Initiative» CEPI was elaborated in 1998 and was officially approved at the Meeting of the Ministers of Small Business of APEC member states held in 1999 in Christ Church, New Zealand. The APEC CEPI program is a result of the partnership of private structures and public organizations of the APEC member states, as well as representatives of business and entrepreneurship circles of these countries Additional information concerning APEC CEPI may be obtained from the following contact persons: In Russia: Tamara Shokareva Direct Selling Association of Russia Building 22, 18, Novoryazanskaya Street, Moscow, , Russia Tel.: +7 (495) info@rdsa.ru WEBSITE: In the USA: Tamuna Gabilaia World Federation of Direct Selling Associations 1667 K Street, NW Suite 1100 Washington, DC info@wfdsa.org Phone: (202) WEBSITE: 60

63 RECOMMENDATIONS The following recommendations were given by the participants of the X International Conference «Entrepreneur and Consumer Steps Towards Each Other»: Regarding Consumer Rights Protection: It is expedient to support the idea of the transformation of the Federal Law On Protection of Consumers Rights into the Code in order to heighten the significance of this document It is important to establish constructive cooperation between consumer organizations and representatives of the legislative power in order to solve the issues in the field of consumer rights protection (round tables, parliamentary hearings, etc.) It is necessary to assume measures to prevent the reduction of entrepreneurs level of responsibility for violations of the Federal Law «On Consumer Rights Protection» It is necessary to prevent deprivation of consumer rights for compensation for the abandonment of the pretrial It is necessary to initiate legislation on the introduction of the definition of «class actions» in defense of a particular group of people It is necessary to return the function of consumer rights protection to the local governmental bodies (Federal Law «On General Principles of Local Government») It is necessary to take measures in order to prevent removal of insurance services from the consumer rights protection legislation It is necessary to prevent the substitution of services for products in the tourist market It is necessary to assume measures to stabilize the operation of suburban trains (reduction of the number of trains, increase of prices, etc.) It is necessary to assume measures to limit the operations of microcredit organizations issuing «quick money» Regarding small business: It is necessary to clearly determine the definitions of «small business» and «individual entrepreneur», as well as to separate legislatively a category of so-called «self-employed citizens» and define a tax regime for them It is necessary to consider the creation of preferential conditions for retired entrepreneurs in terms of mandatory payments to the Pension Fund, etc. It is necessary to provide a period of time to work without official registration for those persons, who wish to try themselves as individual entrepreneurs for the first time, to appraise their entrepreneurial abilities It is necessary to provide individual entrepreneurs in case of the absense of entrepreneurship activities (e.g. vacation) an opportunity to be exempt from paying taxes (e.g., once a year, for 18 days), upon the condition that they don t have employees 61

64 RECOMMENDATIONS Regarding questions related to the Direct Selling Association of Russia activities: It is necessary to strengthen at the regional level the cooperation between consumer rights protection societies and the DSA of Russia member companies in the area of consumers informing regarding the possibility of pre-trial settlement of claims to the member companies with the participation of DSA of Russia and the DSA of Russia Code Administrator It is necessary to establish the cooperation between consumer rights protection societies and DSA of Russia member companies in the area of consumer education of direct sellers at the regional level It is necessary to expand the application of extraterritorial principle experience for handling customer complaints to non-member companies 62

65 NUMBER OF CONSUMER COMPLAINTS AGAINST VIOLATION OF THE LAW ON CONSUMER RIGHTS PROTECTION IN 2013 NUMBER OF CONSUMER COMPLAINTS AGAINST VIOLATION OF THE LAW ON CONSUMER RIGHTS PROTECTION IN THE FIRST HALF OF

A Study of Entrepreneurial Activity of the Population in Regions of the Russian Federation by Means of Panel Data Analysis

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