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ARTICLE · 19 MAY 2022

Consumer Protection (Direct Selling) Rules, 2021

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The Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution formulated a set of guidelines titled Direct Selling Guidelines...

IndiaConsumer Protection
Rupin Chopra
Rupin Chopra
Apalka Bareja
Apalka Bareja
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The Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution formulated a set of guidelines titled Direct Selling Guidelines, 2016 with the intention to curb the menace of illegal multi-level marketing and pyramid schemes that were masquerading as legitimate businesses in 2016.

Direct Selling Rules, 2021

In order to bring stability in the market, they further introduced the Consumer Protection Direct Selling Rules, 2021 on December 28, 2021 and the recent notification dated April 4, 2022 in order to provide more clarity regarding the compliance of the provisions of the Rules.

The Consumer Protection Direct Selling Rules, 2021 came into force on December 28, 2021. The Rules prohibit participation and/or promotion of pyramid schemes and money circulation schemes. The Direct Selling Rules are applicable to any entity offering goods and services in India, whether or not such entity is established in India. The Direct Selling Rules

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