• In Direct Selling, goods or services are directly sold to consumers through sellers who act as individual representatives of the direct selling entities, instead of a retail premises. As per a report by IDSA, the number of active direct sellers in the country stood at around 7.4 million in 2019-20.
  • The new Rules were primarily introduced to prohibit the promotion of pyramid and money circulation schemes by the direct selling industry. Apart from that, entities are now required to be registered in the country. Further, to provide a redressal mechanism for consumers, the Rules mandate that direct selling entities appoint grievance redressal officers who will put up their contact details on the website.
  • Direct selling entities that are not established in India, but offer goods or services to consumers here, will also need to comply with the newly notified rules. The industry has welcomed the new Rules saying it will bring much needed clarity for the entire sector.