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New Rules For Direct Selling Businesses: DSK Legal Analysis

New Rules For Direct Selling Businesses: DSK Legal Analysis

<div class="paragraphs"><p>A customer takes shopping bag from an employee. (Photographer: David Paul Morris/Bloomberg)</p></div>
A customer takes shopping bag from an employee. (Photographer: David Paul Morris/Bloomberg)

The Legal Library section collates quality and in-depth reports on regulatory developments, court rulings and policy changes authored by India’s top law firms and consultants. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of law and policy.

DSK Legal update

The central government has notified the Consumer Protection (Direct Selling) Rules, 2021. The rules have been framed under Consumer Protection Act, 2019 and apply to all goods and services bought or sold through direct selling, all forms of unfair trade practices across all models of direct selling and to a direct selling entity which is not established in India but offers goods or services to consumers in India.

Direct selling entity and direct sellers are prohibited from:

  1. Promoting a pyramid scheme or enroll any person to such scheme or participate in such arrangement in any manner whatsoever in the garb of doing direct selling business;

  2. Participate in money circulation scheme in the garb of doing direct selling business.

DSL Legal summarises the key points affecting direct selling business.

Click on the attachment to read the full report:

DSK Legal Direct Selling.pdf

DISCLAIMER

This alert does not constitute legal advice and is for information purpose only. This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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