As, many complaints have been raised by consumers on the methods adopted by direct selling agents, the MOCA (Ministry of Consumer Affairs) has issued an advisory (F No 21/18/2014-IT(vol II) formulating guidelines that all state governments should take up by setting up a mechanism to monitor/ supervise the activities of direct sellers.
All DSA’s should submit an undertaking to the MOCA, within 90 days from the date of instructions stating that they are in compliance with the guidelines and provide details of its incorporation.

These guidelines consist of clauses describing definitions, conditions for setting up Direct selling business, conditions for conduct of direct selling business, conditions of contract between distributor and direct selling entity obligations of direct sellers, relations between direct sellers and consumer protection to consumers, prohibition of pyramid scheme and money circulation scheme, role of monitoring authority etc.,

With the setting up of such a mechanism, it is hoped that the long felt need of consumers to regularise “Direct selling” will be addressed properly.


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