The Not For Resale (NFR) model is often used by foreign companies wishing to enter the Australian direct selling / MLM market. The revolution of Ebusiness has largely changed the nature of multi level marketing (MLM) businesses by enabling customers to go online and purchase products directly from overseas companies.
The Australian customer therefore becomes the direct importer of the overseas product, rather than the customer purchasing a local product from an independent salesperson.
However, customers should be careful when purchasing therapeutic goods, such as weight loss products, from overseas companies as these products may not meet Australian health standards.
The Therapeutic Goods Act (TGA) ensures therapeutic goods within Australia meet acceptable standards of quality, safety and performance.
The TGA and the Australian Border Force (ABF) can stop shipments of products which are known to be potentially dangerous and to sample and identify suspect products so future shipments cannot enter Australia.
Furthermore, it is an offense under the Therapeutic Goods Act to promote unapproved therapeutic goods within Australia.
Foreign direct selling / MLM companies wishing to enter the Australian marketplace need to be sure they seek local accounting, taxation and legal advice before they start promoting their products within Australia.
More information about the TGA can be found here: https://www.tga.gov.au/about-australian-therapeutic-goods-legislation
Tags: NFR Model, TGA