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ARTICLE · 21 NOVEMBER 2016

The Direct Selling Guidelines 2016

The "pyramid scheme" has been explained in Annexure A to this memo.

IndiaConsumer Protection

The Direct Selling Guidelines 2016 ("Guidelines") have been issued by Ministry of Consumer Affairs, Food & Public Distribution as guiding principles for State Governments to regulate the business of Direct Selling ("DS") and Multi-Level Marketing ("MLM") and strengthen the existing regulatory mechanism on DS and MLM, for preventing fraud and protecting the legitimate rights and interests of consumers.

  1. Important Definitions

"Direct Seller" means a person appointed or authorized, directly or indirectly, by a Direct Selling Entity through a legally enforceable written contract to undertake Direct Selling business on principal to principal basis.

"Network of Direct Selling" means a network of direct sellers at different levels of distribution, who may recruit or introduce or sponsor further levels of direct sellers, who they then support:

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