Centre Issues New Consumer Protection Guidelines, Gives Direct Selling Companies 90 Days To Comply

New Delhi: The Central government on Tuesday issued fresh consumer protection guidelines for companies and banned direct selling industries from promoting pyramid and money circulation schemes. In the new rules, the Centre said the entities have to ensure compliance with the rules within 90 days.Also Read – After Ram Vilas Paswan’s Demise, Piyush Goyal Gets Additional Charge of Consumer Affairs, Food and Public Distribution

The Centre further added in the new rules that the direct selling companies will 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. Also Read – Amway India launches ‘Atmosphere Mini’ home air purifier with 3 years warranty

Check new guidelines here: Also Read – SC Revives Government’s Case in NCDRC Against Nestle India; Seeks Damages of Rs 640 Crore

  • 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.
  • According to the new rules, the state governments will have to set up a mechanism to monitor or supervise the activities of direct sellers and direct selling entities.
  • As per the guidelines, the direct selling entities are prohibited from promoting a pyramid scheme or enroll any person to such scheme or participate in such arrangement in any manner.
  • The direct selling entities cannot participate in money circulation scheme in the garb of doing direct selling business.

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