Download the official Direct Selling Rules 2021 for Consumers PDF – Direct Selling Guidelines 2021 for Consumer Protection PDF
In this post, the readers can find the Direct Selling Rules 2021 for Consumer Protection. The post will also provide users with a PDF of the Direct Selling Rules 2021, which you can find at the end of this blog.
Direct Selling Rules 2021
The Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution formulated a set of guidelines titled Direct Selling Guidelines, with the intention to curb the menace of illegal multi-level marketing and pyramid schemes that were masquerading as legitimate businesses in 2016.
In order to bring stability to the market, they further introduced the Consumer Protection Direct Selling Rules, 2021 on December 28, 2021, in order to provide more clarity regarding the compliance of the provisions of the Rules.
Download Direct Selling Rules PDF
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Direct Selling Rules 2021 Key Highlights
- Both direct selling entities and direct sellers utilizing e-commerce platforms for sale must comply with the new rules.
- Every direct selling entity must develop a system for consumers to file complaints with its offices, branches, or direct salespeople, either in person by mail, telephone, email, or through a website.
- Such entities guarantee that ads for the marketing of products or services are accurate in terms of the items or services’ real qualities, access, and usage circumstances.
- A direct selling entity that openly or implicitly vouches for the authenticity of the products or services offered, or assures that such goods or services are legitimate, is liable for any action involving the authenticity of such goods or services.
- Every direct selling entity must become a partner in the Central government’s National Consumer Helpline’s convergence process.
- Every direct selling entity must nominate a nodal person who is responsible for ensuring compliance with the Act and its regulations, as well as any order on demand issued under the terms of any other legislation now in effect or its rules.
- Every direct-selling entity must keep track of all its direct sellers including evidence of identification, address, email, and other contact information.
- No direct selling entity will, directly or indirectly, misrepresent the quality or characteristics of any of its goods or services by posing as a consumer and posting reviews about its goods or services.
- A direct-selling entity must oversee the conduct of its direct sellers regardless of the distribution mechanism it uses, and assure compliance with these regulations.
- Every direct selling entity must keep a record of relevant information that allows direct sellers who have been delisted by the direct selling entity to be identified and this list must be publicly disclosed on the direct selling company’s website
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