The Direct Selling (Multi-level Marketing) Distributors Protection Council has urged the State government to bring in legislation to safeguard the interests of thousands of investors engaged in this business in the State.

Addressing a press conference here, council secretary M.V. Bharathan and joint secretaries Isaac Abraham and C.V. Navaneeth said the absence of concrete laws had created a fear psychosis in the minds of the investors after law enforcement agencies began charging cases against them under various sections of the Prize Chits and Money Circulation (Banning) Scheme Act, 1978. The majority of the investors carried out direct selling business run by reputed companies based in the U.S. and the U.K., they said.

The council is a newly formed organisation with members belonging to various trade unions affiliated to different political parties. Some of them are marketers of MonaVie, a U.S.-based multi-level marketing company that is now under the scanner of the State police.

Mr. Abraham said the police harassed ordinary investors, though MonaVie had been registered with the Department of Commercial Taxes. Recently, one of its distributors Sajeev N. Nair had been arrested.

However, police sources said the Crime Branch (Economic Offences Wing) units from Kozhikode and Palakkad had arrested Sajeev last week following complaints. He had earned incentive to the tune of Rs.2 crore, while the company did business of nearly Rs.12 crore in the past eight months.

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