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MLM Company owners understand and value the importance of compliance to succeed in the Direct Selling Industry. The image of our MLM industry is in the hands our stakeholders. Once every Direct Selling Company abide to the compliance, which is issued in favour & to safeguard the interests of everyone actively participating to the industry.
Ministry of Consumer Affairs is solely responsible for issuing notifications which contain the rules & guidelines for Direct Selling Companies in India. For any Direct Selling Company, it is a mandatory to comply which are laid out and further strictly adhered to the Direct Selling Guidelines.
Based on the deliberations of the Inter- Ministerial Committee and consultations with the Stakeholders, The Model Guidelines for States & Union Territories, on Direct Selling, have been formulated for protecting the legitimaterights and interests of Industry and Consumers. These guidelines are called as “Direct Selling Guidelines 2016” are issued as guiding principles for StateGovernments to consoider regulating the business of “Direct Selling” and Multi-Level Marketing (MLM) and strengthenthe existing regulatory mechanism on Direct Selling and MLM.The active participation of the Ministry of Consumer Affairs in forming & issuing the Direct Selling Guidelines helps MLM business owners & Industry in the prevention of fraud and protecting the legitimate rightsand interests of consumers.
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Any direct selling entity, conducting direct selling activities, shall submit an undertaking to the Department of Consumer Affairs, Government of India stating that it is in compliance with these guidelines and shall also provide mandatory details of its incorporation.
Being enforcement agencies, the State Governments & Union Territories may take necessary action to implement these Direct Selling Guidelines within their own jurisdiction.
It is envisaged in the guidelines that the State Governments will set up amechanism to monitor/supervise the activities of Direct Sellers, Direct Selling Entities regarding compliance of the guidelines for Direct Selling. Till now 15 major States have issued their Guidelines of Direct Selling as per the Centre.
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