The seller should not provide any literature to a prospect that has not been approved by the direct selling entity. These rules apply to those direct selling entities also that are not established in India but offer goods or services to consumers here.Īccording to the new rules, a direct seller should not visit a consumer's premises without an identity card and prior appointment or approval. These rules will apply to all goods and services bought or sold through direct selling, all models of direct selling and all direct selling entities to consumers in India.
They are also banned from participation in money circulation schemes in the garb of doing direct selling business, the new rules said. If these rules are not complied with, the penal provisions under the Act will apply to them." According to the rules, direct selling entities and direct sellers are prohibited from promoting a pyramid scheme or enrolling any person to such scheme or participating in such arrangement in any manner whatsoever in the garb of doing direct selling business. Speaking with PTI, a senior consumer affairs ministry official said: "This is for the first time that the rules for the direct selling industry are notified under the Consumer Protection Act. The Consumer Protection (Direct Selling) Rules, 2021, as 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.Īs 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. Now, such companies will also be liable for the grievances arising out of the sale of goods or services by its direct sellers.
To protect consumers, the Centre on Tuesday banned direct selling companies like Tupperware, Amway and Oriflame from promoting pyramid or money circulation schemes, as it notified new rules for the industry to be complied with within 90 days.
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