Now direct selling companies will not be able to sell the dream of becoming a millionaire

Now direct selling companies will not be able to sell the dream of becoming a millionaire

Direct selling companies will no longer be able to run pyramid schemes. Along with this, the central government notified new rules for such companies and barred them from promoting cash dissemination schemes. Companies will now have to comply with the new rules within 90 days.

 

New Delhi, Pretr. Direct selling companies will no longer be able to run pyramid schemes. Along with this, the central government notified new rules for such companies and barred them from promoting cash dissemination schemes. Companies like Amway, Tupperware and Oriflame will now have to comply with the new rules within 90 days. Direct selling companies will also be made accountable for complaints about the products and services sold by their sellers.

The Ministry of Consumer Affairs released the notification of the Consumer Protection (Direct Selling) Rules, 2021. Sellers selling goods directly to customers on e-commerce platforms will also come under the purview of this rule. Under the new rules, the responsibility of keeping an eye on direct selling companies has been put on the state governments.

 

What an official of the Ministry of Consumer Affairs said:- An official of the ministry said that for the first time the rules and regulations for the direct selling industry have been notified under the Ministry of Consumer Protection. If they violated the law, they would be punished under the law. It is noteworthy that companies running pyramid schemes show different dreams to connect people with themselves. Potential customers are told on paper that if they add four or five people, those five people add 25 people with them, the chain will get longer. 

 

The longer this chain is, the more the earning of the customers reaching the top will continue to grow in the same way.

What are Pyramid Schemes:

 

Under pyramid schemes, a person is recruited with the lure that his earnings will increase if he adds more people under him. Almost ends. In such a situation, the one who is at the bottom of the pyramid has very little or no earnings. - Many times a hefty fee is charged for joining in this. This includes items such as training fees, required kits and membership fees.

 

As per the new rules:- Direct seller has to take prior permission before approaching the customer- No direct seller will go to any customer without identity card- Seller shall not make any promise to his customer which his company does not fulfill Pay - Seller must enter into a written contract with the Direct Selling Company for the sale of goods or services - Seller will inform its Customer the name and address of the Direct Selling Company - Seller will provide its Customer with details of the terms of sale, payment, refund or use The Seller shall ensure that the Customer receives the correct and genuine Goods Seller shall not allow the personal information of the Customer to be disclosed anywhere else.