Govt finalises guidelines defining direct selling

To protect public from fraudulent ponzi schemes being peddled as direct selling, a new set of guidelines is likely to be put in place soon to regulate this sector.
The Department of Consumer Affairs Ministry has finalised the guidelines for the Rs 72,000 crore direct selling industry and the same is expected to be notified.
The guidelines will define direct selling and how it is different from the other money circulating scheme. The direct selling should always be linked with products and there should be a buyer-seller agreement, sources said.
In a meeting with industry stakeholders held last month, Consumer Affairs Minister Ram Vilas Paswan had discussed the draft guidelines prepared by the inter-ministerial panel and took their final views.

The guidelines are being framed as direct selling industry is facing problems in the absence of clear legislation that defines the regulatory framework.
Industry players had suggested to give legal sanctity by notifying the guidelines on direct selling as part of rules under the new Consumer Protection Bill.
The bill has provisions to protect the interest of consumers buying on e-commerce and direct selling platforms.