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Condition for the setting up Direct Selling Business


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;

It shall

1.   Be a registered legal entity under the laws of India.

2.   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 remuneration system and expected remuneration for a newly direct sellers;

3.   Provide accurate and complete information to prospective and exsiting direct sellers concerning the reasonable amount of remuneration opportunity, and related rights and obligations.

4.   Pay all dues and make withholdings from direct sellers in a commercially reasonable manner;

5.   Notify and provide a full refund or buy back guarantee to every direct seller on reasonable commercial terms which can be executed within a period of 30 days from the date of distribution of the goods or services to the direct sellers.

6.   Notify and provide to every direct seller a cooling-off period which entitles such direct sellers to return any goods/ services purchased by the direct seller during the Cooling-Off period

7.   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.

8.   It shall have an office with identified jurisdiction of its operation in the State or enable the consumers and direct seller to acquaint themselves with price of products, return or replacement of products and efficient delivery of goods and services, and post-sale redressal of grievances




  • Mr. Arun Aggarwal
  • Legal Expert, Consultant, Software Analyst
  • Address: B-2/272,273 First Floor Sector-6 Rohini, New Delhi-110085 (India).
  • For further information on info@vistaneotech.com
  • Phone/Whatsapp/Viber/ Wechat : +91 9811190082
  • skype: arun.vistaneotech, QQI id: 973620192

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