The Center on Tuesday banned promotion of pyramid and money circulation schemes of direct selling companies as it notified new rules for the direct selling industry. Entities will have to ensure compliance of the rules within 90 days.
Direct Selling Companies shall also be liable for complaints arising out of the sale of goods or services by their Direct Sellers. Tupperware, Amway and Oriflame are among the major players in the direct selling industry.
The Consumer Protection (Direct Selling) Rules, 2021 notified by the nodal Ministry of Consumer Affairs are to be followed by both direct selling entities and direct sellers using e-commerce platforms for sale. As per the new rules, state governments will have to set up a mechanism to monitor or monitor the activities of direct sellers and direct selling entities.
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