Direct Selling / Multi Level Marketing (MLM) / Network Marketing Guidelines For The State of Tamilnadu
Every Direct selling entity intending to carry out direct selling business shall within ninety days after publication of the notification in the Gazette of Tamil Nadu comply the conditions for the conduct of direct selling business.
Every Direct selling entity shall be registered legal entity in India. Every Direct Selling Entity shall provide a mandatory orientation session to all prospective direct sellers and pay all dues and make withholdings from direct sellers in a commercially reasonable manner. Entity shall notify and provide to every direct seller a cooling-off period.
Any trading or marketing or sale activity not adhering the condition/clause of guideline shall not be considered as Direct Selling and would be dealt appropriately under relevant laws.
Some important points which should be done by Direct Selling Entities:
Some important points which should not be done by Direct Selling Entities:
Every Direct Selling entity shall execute a contract agreement whether directly or indirectly with Direct Sellers before enrolment. The agreement shall be made in writing, describing the material terms of participation and shall not compel or induce the direct seller to purchase goods or services in an amount that unreasonably exceeds an amount that can be expected to be sold to consumers or consumed within a reasonable period of time.
PROHIBITION OF PYRAMID SCHEME & MONEY CIRCULATION SCHEME
All complaints received over phone, email, website, post and walk-in shall have a complaint number for tracing and tracking the complaint and record time taken for redressal by Direct Selling Company/Entities.