The Direct Selling Association (DSA) applauds California Governor Gavin Newsom for signing Assembly Bill 5, which includes an exemption for direct sellers. Without the exemption, the bill would have created an uncertain framework for more than 2.2 million Californians involved in direct selling. 

“We want to thank Assemblywoman Gonzalez and interested stakeholders for working with DSA and including exemption language,” said DSA President Joseph N. Mariano. “This language will allow the direct selling industry to continue thriving in California and independent salespeople to continue having the freedom and flexibility to operate their businesses. We want to thank all our member companies who engaged with elected officials in California to express the importance of the business.” 

The language in the bill incorporates state Unemployment Insurance Code Section 650, which has classified direct sellers as independent contractors for over 20 years. DSA hopes as state and federal elected officials consider similar bills to include similar language that direct sellers are clearly and specifically independent contractors. 

ABOUT THE DIRECT SELLING ASSOCIATION

The Direct Selling Association (DSA) is the national trade association for companies that offer entrepreneurial opportunities to independent sellers to market and sell products and services, typically outside of a fixed retail establishment. In 2018, direct selling took place across the United States, generating $35.4 billion in retail sales. More than six million entrepreneurs in the U.S. are selling products or services through the direct selling channel, providing a personalized buying experience for more than 36.6 million customers.