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.
- 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: