Consumer Protection (Direct Selling) Rules
The Consumer Protection (Direct Selling) Rules, 2021, have been published by the Central Government.
Consumer Protection (Direct Selling) Rules
29 December 2021 Current Affairs:The Consumer Protection (Direct Selling) Rules, 2021, have been published by the Central Government.
Highlights:
New Rules
Highlights:
- Direct selling entities and direct sellers are prohibited from Promoting a Pyramid Scheme or enlisting anyone in these schemes under the notified rules.
- Participating in a money-transfer scheme
- State governments have been given the responsibility of monitoring compliance with these rules.
- Direct Selling Entities are required to have at least one physical location as a registered office within India, according to the rules.
- They should make a self-declaration that the Direct Selling Entity has followed the rules and is not involved in a pyramid scheme or money circulation scheme.
- All products sold by a direct selling company must adhere to the declarations made under the Legal Metrology Act of 2009.
- A proper grievance redressing mechanism must be established by the direct selling entity. On their website, they will have to display the current and updated name, as well as other information.
- The website address must be prominently displayed on the product information sheet or pamphlet.
New Rules
- The following will be subject to new rules:
- Direct selling encompasses all goods and services purchased or sold.
- All direct selling businesses that sell goods and services to consumers are included.
- All direct selling models
- Unfair trade practices of any kind in any model of direct selling
- A direct selling company that is not based in India but sells goods and services to Indian consumers.
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