Following consistent demand by customers of e-commerce business, the Centre on Monday said the “model guidelines” of direct selling had been formulated and the states informed accordingly.
According to the guidelines, any direct selling entity conducting sales activities shall submit an undertaking to the Department of Consumer Affairs within 90 days, stating that it is in compliance with these guidelines and shall also provide details of its incorporation, official sources said here.
We are confident these guidelines will certainly help in bringing in regulatory clarity for the sector – Secretary General, FICCI, A. Didar Singh
By definition, direct selling includes demonstration and sale of products and services to consumers, usually in their homes or at their jobs.
Officials say in the era of internet and e-commerce, direct selling would mean sales made through e-contact arrangements as well as internet sales.
Union Food and Consumer Affairs Minister Ram Vilas Paswan told reporters that “The state governments and union territories should now take necessary actions to implement the same”.
It is envisaged in the guidelines that the state governments will set up a mechanism to monitor and supervise the activities of direct sellers, direct selling entity regarding compliance of the guidelines for direct selling.