Indian Government Guidelines for Direct Selling Association
Industries (Gr.I) Department
Jaipur, October 5,
2012
No.F5 (2) Ind/1/2012:- To regulate the
sale of goods and services outside of retail establishments
Otherwise
known as "Direct Selling (Multi Level Marketing)" and to provide for
protection Of consumers
who purchase
goods and services from direct sellers, following guidelines are issued with
the approval of
the
Competent Authority. These guidelines will come into force from the date of
publication in official
Gazette and
Will remain in force till an appropriate legislation is enacted for the said
purpose:-
1 1 Definitions
(i)
Direct
Selling
Means
marketing or sales of goods directly to the end user consumer using word of
mouth
publicity,
display and/or demonstrations of the goods/products, and/or distribution of
pamphlets.
Explanation:
Companies can open pick up points and delivery points for maintaining effective
delivery
system.
(ii)
Direct
Selling Entity
Means a
business entity as recognized by law for the time being in force including but
not limited
to a Company
duly incorporated under the Indian Companies Act, a registered Partnership Firm
constituted
under the Indian Partnership Act.
(iii)
Direct
Seller
Means a
person who is authorized by the Direct Selling Entity to engage into the
business of Direct Selling.
(iv)
Consumer
An
individual who buys goods or services for personal use and not for manufacture
or resale and
shall have
the same meaning as provided under the Consumer Protection Act, 1986.
(v)
Goods/
products
Goods/Products
shall have the same meaning as defined in the Sale of Goods Act and section
3(26) of the
General Clauses Act* 1897, that is, it shall include every kind of movable
property
other than
actionable claims and money.
Fore More Info Read Attachment.
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