IDSA seeks protection of direct-sellers

The Indian Direct Selling Association (IDSA) is hopeful that the draft of the legislation that they had proposed more than a year ago with the Department of Consumer Affairs will be implemented shortly.

The association hopes that the draft will help both the distributors and the consumers protect their investments.

"The proposed draft should help differentiate between genuine direct-sellers and unscrupulous fly-by-night operators, make licences compulsory and impose strict fines which will act as a deterrent to illegitimate direct-selling companies," said William Pinckney, chairman of IDSA.

IDSA, the self-regulatory body of 12 companies consisting of Amway, Tupperware and other direct-selling majors, is continuing its fight against illegitimate companies which peddle pseudo get-rich-quick pyramid schemes.

The association's efforts are mainly aimed at creating awareness among the general public and stamping its seal of approval on companies which pass its strict standards for certification.

An IDSA survey revealed that the size of the legitimate direct-selling industry in 2002-03 was Rs 2,311 crore and estimates a 25 to 30 per cent growth in the industry's revenues in 2003-04.

"Direct selling in India has emerged as a fast growing industry. It provides employment to over 4,000 people directly and indirectly, while independent distributors or direct selling agents (DSAs) are estimated at 1.25 million, 65 per cent of whom are women," Pinckney pointed out.

For the industry to realise its full potential, a legislative measure is necessary that curtails fraudulent companies and make any illegal direct-selling offenses punishable, Pinckney added.

Established in 1996, IDSA is at present leveraging its international affiliation with the World Federation of Direct Selling Associations (WFDSA) to launch new initiatives that promote consumer education.

The worldwide size of the direct-selling industry is estimated at $85 billion through the activity of nearly 30 million (DSAs) in 165 countries.