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Centre notifies new rules for direct selling industry

Dec 28, 2021 09:14 PM IST

The Consumer Protection (Direct Selling) Rules, 2021 notified by the nodal Consumer Affairs Ministry are to be complied with by both direct selling entities and direct sellers using e-commerce platforms for sale.

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The central government on December 28 notified new rules for the direct selling industry banning companies from promoting pyramid and money circulation schemes. The entities have to ensure that these new rules are complied by within 90 days.

According to the new rules, the direct selling companies will also be liable for the grievances arising out of the sale of goods or services by its direct sellers.

Tupperware, Amway and Oriflame are among the key players in the direct selling industry. The Consumer Protection (Direct Selling) Rules, 2021 notified by the nodal Consumer Affairs Ministry are to be complied with 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 supervise the activities of direct sellers and direct selling entities. Direct selling entities are also liable for the grievances arising out of the sale of goods or services by its direct sellers.

Here are a few other rules direct selling entities must abide by:

Every direct selling entity has to establish an adequate grievance redressal mechanism and display the current and updated name, contact details including telephone number, email address and designation of such officer on its website, and the details of its website shall also be prominently printed on the product information sheet or pamphlet.