Direct Selling Guidelines: Friends, if you want to know about Direct Selling Guidelines, then this article is for you, today in this article we will discuss about Direct Selling Guidelines. and will know in detail about all the guidelines given in Direct Selling. What are the guidelines made for companies and direct sellers.
What is Direct Selling Guidelines?
Companies with pyramid scheme and money circulation plan cannot cheat people in the guise of direct selling and people can identify true and false direct selling company, for this some rules have been made which are called direct selling guidelines, first Bar Direct Selling Guidelines was released in 2016, But there were some shortcomings in this, due to which some improvements were reissued in Direct Selling Guidelines 2021 and some new rules have also been added, so let’s know about this latest Direct Selling Guidelines.
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Direct Selling Guidelines
This guideline was issued by the Ministry of Consumer Affairs, Food and Public Distribution in December 2021, due to which it has been named Direct Selling Rules, in which many rules have been given for both Direct Selling Companies and Direct Seller, so let’s Go friends. Let us now know all those rules one by one.
A total of 13 sections have been given in the Direct Selling Rules, in whose section 1 and section 2 its rules and to whom they will apply have been explained.
Section 3: Definitions
Section 3 of the Direct Selling Rules
2021 defines some terms related to Direct Selling as it is necessary to know about these terms to understand the Direct Selling Guidelines.
1.Act: means the Consumer Protection Act 2019 (35 of 2019) relating to
2. Cooling off period: When a Direct Seller signs a contract or agreement with a Direct Selling Company and terminates that contract before the end date of that contract, but without violating any of the terms, then he The time period is called the cooling off period.
3. Direct Seller: A person who is officially associated with a direct selling company and sells the products of that company is called a direct seller.
4. Direct Selling Entity: Direct Selling Company itself is called Direct Selling Entity which does not come under pyramid scheme and is completely product base company.
5. Money Circulation Scheme: Direct selling companies who do not have any product or service and even if it is only for show, but those companies run their business by misappropriation of money, i.e. first take money from people and then the same money They are given as income, such schemes are called Money Circulation Schemes which is also a fraud.
Section 4: Required Documents that the Direct Selling Company must have
- Certificate of incorporation.
- memorandum of Association.
- articles of Association.
- Company PAN Card.
- Tax Deduction and Collection Account Number.
- GST Registration Certificate.
- income tax return.
- Balance sheet.
- Register of Direct Seller.
- Certificate of Importer-Exporter Code.
- FSSAI Certificate.
- Trademark Registration Certificate.
- License and registration certificate is issued under drugs and cosmetics for the purpose of manufacture or sale of drugs including Ayurvedic, Unani medicines, Siddha and Homoeopathic medicines.
Section 5: Rules for Direct Selling Companies
1. Direct selling companies –
The company should be registered with MCA.
The company must have a registered office and a physical location in India.
The company will have to give a declaration that it follows the direct selling guidelines and does not run any pyramid scheme or money circulation scheme.
2. The website of the direct selling company should have all the information given below –
Registered name of the company.
Company’s office and all its branches information.
Company contact details like customer care number, landline number, email, fax etc.
All registered complaints should have a ticket number so that the status of those registered complaints can be tracked.
Section 6: Rules for Direct Seller
1. Direct seller has to –
Every direct seller should have a written contract with his company only then he will be called a direct seller of that company.
If a direct seller goes to show his business plan to a prospect, then it is mandatory for him to show his company’s ID card and he will have to give correct information about himself and his company.
The direct seller has to give his prospect the correct information about the product, how is the quality of the product, how much it costs, how to exchange if the product turns out to be defective, what is the process to return the product, in how many days the refund is received. How can the payment be made etc.
2. Direct seller should not –
Will not go to his house without identity card and permission of the potential customer.
No one shall give any article or information to a potential customer which is not recognized by the Direct Selling Company.
By no means neglect to purchase any literature or sales display equipment.
No claim shall be entertained from the prospective customer in respect of sales which have not been made by the Direct Selling Company.
What is the guideline of direct selling?
If a direct seller does not make any sale for 2 years, then he will have to withdraw from the agreement of direct selling business by giving a notice. The company will have to give the data of purchase and sale by its direct seller from time to time.
What is the fee for direct selling?
Talking about the fee of PG Diploma Direct Selling course, the fee of this course ranges from Rs 90 thousand to Rs 2 lakh. This course is of PG Diploma level and this course will be full time.
This is all about Direct Selling Guidelines. We are sure that this information will help you to know about them. If you find something wrong let us know through comments or by using our contact section. We are waiting for you.