In the wake of the arrest of Amway India CEO William Scott Pinckney , the representative body of direct selling companies, Indian Direct Selling Association (IDSA), on Friday, sought clearer regulatory guidelines.
"We need a clear policy framework. There should be clear distinction between the direct selling industry, and the fraudulent financial pyramid and ponzi schemes,” IDSA Chairman Amarnath Sengupta told reporters here.
There was no clear and holistic definition of direct selling in India, and, as a result, the classification of direct selling was also not clear, he said. He also added that events such as the unwarranted arrest of Amway officials would dampen the spirit and confidence level of 50 lakh distributors.
IDSA, which had 19 direct selling companies such as Amway, Tupperware and Oriflame as its members, has been continuously advocating the issue with the Government of India, IDSA Secretary-General Chavi Hemanth said.
She added, "The focus of regulation should be to lay down certain specifications for the protection of consumers, distributors, and the direct selling entity." There was need to take into consideration the global best practises while designing a comprehensive legal framework to regulate the direct selling in the country, she said.