direct selling guidelines

The wait is finally OVER! QNET welcomes the newly released guidelines for companies in the direct selling industry in India from the Ministry of Consumer Affairs. This is a huge step forward for companies in the direct selling space who have been plagued by baseless allegations and confusion around their business model for many years.

The new guidelines will set clear guidelines, help serious companies grow, and protect consumers.

The central government has sent an advisory to state governments on the model framework called Direct Selling Guidelines 2016 for implementation at the local level.

 Some of the highlights of the new direct selling guidelines include:

  • Direct selling Company shall not collect enrollment fees
  • Minimum quantity of goods to be purchased shall not be fixed.
  • Sales promotion materials shall not be charged.
  • Buy back policy within 30 days.
  • Reasonable cooling off period should be given & in case of cancellation, full amount shall be refunded.
  • Unused and marketable product shall be taken back and money shall be refunded.
  • Companies should maintain updated register of Direct Sellers.
  • Company website shall show full details.
  • All financial dues shall be paid.
  • Members shall pay VAT if exceeds the limit.
  • Recruiting shall be fair.
  • Commission payout shall be based on sales.
  • Marketing plan shall clearly show the calculation of income.
  • Company shall be registered.

The full set of guidelines can be seen on the Ministry website here.

All direct selling companies have been given 90 days to register and comply with these guidelines.

QNET already adheres to good practices as a member of numerous associations and is reviewing these guidelines in further detail to ensure complete compliance and welcomes the opportunity to operate in a clear and safe environment. Given the potential for growth in a regulated environment, QNET is also considering further investing in local manufacturing and assembly for its exclusive products, to support not just its costumers in India, but also neighbouring countries that are fast emerging in the direct selling space. 

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