Direct-selling companies can't promote pyramid scheme, says govt

The direct sellers as well as the direct-selling entities using e-commerce platforms for sale will also need to comply with the requirements of the Consumer Protection Rules, 2020.

The Union government on Tuesday prohibited entities such as Amway from promoting a pyramid scheme or enrolling any person to such a scheme in the garb of doing direct-selling business.

Notifying the Consumer Protection (direct selling) rules, the consumer affairs ministry also prohibited such sellers from participating in money circulation schemes, directing them to comply with the rules within three months from the date of publication of these rules in the Official Gazette.

“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