Direct Selling Guidelines- Conditions For Setting Direct Selling Business

As per relevant clauses of Direct Selling Guidelines, Every Direct selling entity intending to carry out direct selling business subsequent to the publication of the notification in the Gazette, shall within 90 days comply with the following  set of conditions for the conduct of direct selling business:

• be a registered legal entity under the laws of India.
• Provide a mandatory orientation session to all prospective direct sellers providing fair and accurate information on all aspects of the direct selling operation, including but not limited to the remuneration system and expected remuneration for newly recruited direct sellers;
• Provide accurate and complete information to prospective and existing direct sellers concerning the reasonable amount of remuneration opportunity, and related rights and obligations;
• Pay all dues and make with holdings from direct sellers in a commercially reasonable manner;
• Notify and provide a full refund or buy-back guarantee to every direct seller on reasonable commercial terms which can be exercised within a period of 30 days, from the date of the distribution of the goods or services to the direct seller;
• Notify and provide to every direct seller a cooling-off period which entitles such direct seller to return any goods /services purchased by the direct seller during the cooling-off period;
• The promoter or key management personnel should not have been convicted of any criminal offence punishable with imprisonment in last 5 years by any Court of competent jurisdiction;
• It shall have an office with identified jurisdiction of its operation in the State to enable the consumers and direct seller to acquaint themselves with (i)price of products, return or replacement of products (ii) efficient delivery of goods and services, and (iii) post-sale redressal of grievances;

(Source: Direct Selling Guidelines)

(The author is Practising Company Secretary and can be reached at 8375877464 or E-mail : [email protected])