Centre has notified the Consumer
Protection (Direct Selling) Rules, 2021. These Rules shall apply to all
goods and services bought or sold through direct selling, all models of
direct selling, all direct selling entities offering goods and services
to consumers in India, all forms of unfair trade practices across all
models of direct selling. These Rules shall also apply to a direct
selling entity which is not established in India, but offers goods or
services to consumers in India.
Existing direct selling entities need to comply of these rules within
ninety days from the date of publication of these rules in the Official
Gazette. The direct sellers as well as the direct selling entities using
e-commerce platforms for sale shall comply with the requirements of the
Consumer Protection (e-Commerce) Rules, 2020.
Both direct selling entity and direct sellers are prohibited from
promoting Pyramid Scheme or money circulation scheme. State Government
must set up a mechanism to monitor or supervise the activities of direct
sellers and direct selling entities. Direct selling entities will be
liable for the grievances arising out of the sale of goods or services
by its direct sellers.
SOURCE ; AIR NEWS
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