The Ministry of Consumer Affairs, Food and Public Distribution on 21st January 2022 having regard to the publication of the Consumer Protection (Direct Selling) Rules, 2021 withdraws the Direct Selling Guidelines, 2016 which was published on 26th October, 2016.
The new rule shall be applicable to all goods and services bought or sold through direct selling, all models of direct selling, all direct selling entities offering goods and services to consumers in India, all forms of unfair trade practices across all models of direct selling and also to also to a direct selling entity which is not established in India, but offers goods or services to consumers in India.
As per the new rule, direct selling companies have to register themselves under relevant Indian laws and also with the Department for Promotion of Industry and Internal Trade (DPIIT) for allotment of a registration number.
