The Union Ministry of Consumer Affairs,Govt. Of India has issued the Draft for Consumer Protection Rules( Direct Selling)2021. The Ministry Of Consumer Affairs is inviting your valuable suggestions,taking public and stakeholders inputs on the Consumer Protection Rules(Direct Selling) 2021.
Time & again,Ministry of Consumer Affairs has been using notifications either to inform the public & interested stakeholders by issuing Direct Selling Guidelines,2016 Consumer Protection Act,2019 and recently Direct Selling Rules 2021.These initiatives are undertaken by the Ministry of Consumer Affairs to make Direct Selling a Legitimate Activity in India.
The Direct Selling Guidelines,2016 were advisory in nature although followed & adhered by every Direct Selling Entity to be given a status of Legitimate Business under Ministry of Consumer Affairs.With the proposed Direct Selling Rules,2021 under the Consumer Protection Act,2019 shall entail to have legal backing and violation of the same will result in heavy penalties.
The Department for Promotion of Industry and Internal Trade(DPIIT) under Ministry of Commerce and Industry in India have taken active participation & shown keen interest along with Ministry Of Consumer Affairs for registering Direct Selling Entities. The draft Direct Selling Rules,2021 have described the distributors who are primary responsible for selling the product or service offering further to earn incentives on sale are “Direct Sellers”.
The Direct Selling Entities are also advised repeatedly to have strict measures for Grievance Redressal Mechanism & dedicated Customer Care to ensure smooth experience.
The proposed rules also specify that “Pyramid Scheme” and participation in “Money Circulation Scheme” in the name of Direct Selling Business cannot be promoted or executed by any Direct Selling Entity.Similarly on the foundation of Direct Selling Guidelines,2021 the draft urge Direct Selling Entities to comply with the regulations within 90 days from the inception of their entity by Ministry of Corporate Affairs.
Direct Selling Guides have laid stress over the major policies and agreements to be displayed & followed by every Direct Selling Entity.The policies such as “Cooling Off”, ”Refund /Return / Exchange & Buyback along with Terms & Conditions should be given careful consideration by Direct Selling Entities and their Management ensuring that any breach of contract or any disobey of policy shall levy of penalty as the case may be.
Since Ministry Of Consumer Affairs is inviting your valuable suggestions you are welcome to participate in our questionnaire and win the chance to attend our MLM Industry Expert Panel Discussion on Direct Selling Rules,2021.
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Source:Direct Selling Today,TOI,ZeeBiz