BE’s Strong Stance on Compliance: Appeal filed with Banco Central Del Uruguay (BCU) against Resolution RR-SSF-2023-99
We would like to confirm that we have filed an appeal with the Superintendencia de Servicios Financieros (SSF), Banco Central Del Uruguay (BCU) against the Resolution RR-SSF-2023-99 dated 27/02/2023.
To begin with, we want to exemplify that direct selling business is legal in Uruguay and most of the nations across the globe.
Nonetheless, we are aware of concerns over the business practices of some companies in this area. We want to make it evident that we operate with the utmost integrity, business ethics and regulatory compliance and we have taken every precaution to guarantee that our business practices are legal.
SSF in its Resolution mentioned that we are not registered with the SSF, however we addressed their concerns by giving comprehensive information about our operations, products and services, and how we are not required to be registered with the SSF or any other authority. We have also provided the details as to how BE cannot be referred to as a Pyramid Scheme. We are confident that we are in compliance with the appropriate authorities’ regulations and are not in breach of any laws.
We want to underline our dedication to compliance and openness in our operations. To ensure that our distributors are entirely aware of their responsibilities and comply with the law, we have designed a Direct Sales Awareness and Compliance Certification Course.
Hardly any Direct Sales company offers such a detailed and well-researched awareness and compliance course. Some don’t have time and others are probably busy expanding their market and distribution network. While we at BE also face these two challenges; however, we decided to lead by example. We wanted to educate not only our distributors but also customer and the general public about various aspects of Direct Sales.
Direct Sales is one of the world’s oldest industries, but because of a lack of meaningful discussion and education, this industry has been heavily criticized.
The one-sided criticism without appreciating the apparent benefits of this business has adversely impacted the reputation of the industry and the global companies that are operating in this industry. All legitimate Direct Sales companies are engaged in legitimate business! Period.
Some critics have tried to label all companies operating in the Direct Sales industry as fraud, mainly because of the risk associated with it. One such risk highlighted by the critics is that people joining as distributors may not make any money or are similar to top distributors.
Well, that is true and in line with the way the world operates in a free economy and market.
As reported by Fortune; “The top 0.01% richest individuals—the 520,000 people who have at least $19 million— now hold 11% of the world’s wealth, up a full percentage point from 2020. Meanwhile, the share of global wealth owned by billionaires has grown from 1% in 1995 to 3% in 2021.” We are not celebrating the inequality in wealth distribution; but merely pointing out that such inequalities exist and that cannot be a ground to classify a legitimate, registered and licensed business as a fraud or pyramid scheme.
The other criticism is that people might lose money as distributors rather than make money. Well, isn’t that a risk all businesses take? Which industry or sector can guarantee you 100% return? Will investing in stocks, state-run lottery, regulated gambling, real estate etc., will guarantee you a secured return? Obviously not, but does that make these businesses illegal? Obviously not! Changes in regulations, market conditions, customer perceptions and preferences, advancements in technology, changes in the political environment etc., can impact a company’s business and in some cases might force a company to be shut down, but that mere closure of a company or someone losing their money doesn’t make that company an illegal business. These are inherent risks associated with any type of business.
There is a misinformed drive to draw a distinction between a traditional business and a Direct Sales business. But what such critics are trying to achieve is *a distinction without a difference* (A distinction without a difference is a type of logical fallacy where an author or speaker attempts to describe a distinction between two things where no discernible difference exists. It is particularly used when a word or phrase has connotations associated with it that one party to an argument prefers to avoid).
Neither the Direct Sales business model nor the complicated compensation plan is discussed or taught in business schools. It is the lack of education and awareness among the public, and media that makes perfectly legitimate business an illegitimate business.
Anyways, we at BE realized that it is about time to educate our distributors, customers, public and our well-wishing critics about Direct Sales. It would a bit unfair to call Direct Sales companies that have registered companies, offices, websites, customers, distributors, executives, registered trademarks, DSA Registration, contracts with vendors and business partners, employees, and operate globally as illegal or scam business.
Another reason for developing this course was to provide specific compliance-related education and awareness to our distributors. Keeping the above goals in mind, we have worked for months and spent our resources to bring this course to you. We hope that this course adds value and assists you in better understanding of Direct Sales industry.
We have deep respect for local regulations, authorities, customer protection and business ethics. We understand the importance of complying with the regulations set by the Central Bank of Uruguay and we will engage in meaningful discussion and better understand the concerns to ensure absolute compliance with the local regulations.
We welcome dialogue and feedback from the community, the general public, and the media at all times.