The new guidelines also state that direct selling businesses would be held responsible for any complaints that arise from their direct sellers’ sales of products or services.
A new set of consumer protection rules was released by the federal government on Tuesday, and direct selling organisations were barred from marketing pyramid and money circulation schemes. The Centre’s new guidelines state that organisations must guarantee that the requirements are followed within 90 days.
The new guidelines also state that direct selling businesses would be held responsible for any complaints that arise from their direct sellers’ sales of products or services. Some of the most well-known names in direct selling are Tupperware, Amway, and Oriflame.
New guidelines may be found here:
- The nodal Consumer Affairs Ministry has issued the Consumer Protection (Direct Selling) Rules, 2021, which state that both direct selling businesses and direct sellers utilising e-commerce platforms for sale must comply with the rules.
- The new laws require state governments to establish a system for monitoring or supervising the operations of direct sellers and direct selling organisations.
- Direct selling companies are forbidden by the rules from promoting pyramid schemes, enrolling anybody in them, or taking part in them in any way.
Direct selling companies are prohibited from participating in money-transfer schemes under the guise of conducting direct selling operations.