Consumer Affairs, Food and Public Distribution Minister Ram Vilas Paswan said on Thursday presided over an inter-ministerial meeting to discuss the issue of direct selling, and arrived at the conclusion that there is need to evolve a very transparent and consumer friendly business model for this sector
The meeting was organized by FICCI.
Paswan said his ministry is taking the demands of the direct marketing sector seriously as to whether a specific regulator or set of regulations is required for the sector.
Stressing on the need for a credible business model for direct selling, Paswan said that rising incomes, large population of youth and urbanization has fuelled unparalleled demand for consumer products.
"Direct Selling is a fast growing sector, especially in the Asia Pacific region and India is different as it is a big consumer market. I'm aware that there have been many different business models adopted by direct selling companies, but in their garb, fly-by-night operators have actually done frauds with innocent consumers in the country in absence of awareness and strict norms adopted by the industry itself," he added.
Paswan also released a study brought out by FICCI and KPMG on various aspects of the direct selling sector in India.
