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January 2022
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Business News
Govt notifies new rules for direct selling
 
New Delhi, The Centre on Tuesday notified new rules for direct selling.

As per the rules, both direct selling entity and direct sellers are prohibited from promoting Pyramid Scheme or money circulation scheme.

Both direct sellers as well as the direct selling entities using e-commerce platforms for sale will have to comply with the requirements of the Consumer Protection (e-Commerce) Rules, 2020.

"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 and also to also to a direct selling entity which is not established in India, but offers goods or services to consumers in India," the notification said.

Existing direct selling entities will have comply of these rules within 90 days from the date of publication of the rules in the Official Gazette.

State Government will set up a mechanism to monitor or supervise the activities of direct sellers and direct selling entity.

Direct selling entities would be liable for the grievances arising out of the sale of goods or services by its direct sellers.


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