Amway, Oriflame & Others Banned From Promoting Pyramid Schemes: Direct Selling Regulated In India
On December 28, the central government issued new regulations for the direct selling business, prohibiting companies from promoting pyramid and money circulation schemes. Within 90 days, the entities must ensure that these new requirements are followed.
New Rules For The Direct Selling Industry
According to the new laws, direct selling companies would be responsible for any complaints that arise from the sale of goods or services by their direct sellers.
The direct selling industry’s major participants include Tupperware, Amway, and Oriflame.
Consumer Protection (Direct Selling) Rules, 2021
Both direct selling businesses and direct sellers using e-commerce platforms for sale must follow the Consumer Protection (Direct Selling) Rules, 2021, as notified by the nodal Consumer Affairs Ministry.
State governments will be required to establish a mechanism to regulate the operations of direct sellers and direct selling firms under the new laws.