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
- Direct Selling Consultant and Legal Advisor
- Address: 517, Jaina Tower 1, Janak Puri District Center, New Delhi 110058.
- For further information on [email protected]
- Phone/Whatsapp: +91 9811190082
- skype: arun.vistaneotech
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