Govt bans direct selling industry from promoting pyramid and money circulation schemes

The Centre on Tuesday banned direct selling companies from promoting pyramid and money circulation schemes as it notified new rules for the direct selling industry.

The entities have to ensure compliance with the rules within 90 days.

The direct selling companies will also be liable for the grievances arising out of the sale of goods or services by its direct sellers.

Tupperware, Amway and Oriflame are among the key players in the direct selling industry.

The Consumer Protection (Direct Selling) Rules, 2021 notified by the nodal Consumer Affairs Ministry are to be complied with by both direct selling entities and direct sellers using e-commerce platforms for sale.

As per the new rules, state governments will have to set up a mechanism to monitor or supervise the activities of direct sellers and direct selling entities.

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