Direct Selling Guidelines 2016 India Ministry Of Consumer Affairs
Many people ask a question – Is direct selling, legal in India?
The answer is YES. There were a lot of concerns about the same in the minds of people but finally, in 2016, the Ministry of Consumer Affairs came out with guidelines for direct selling or network marketing or multi-level marketing companies.
As per the document:
“These guidelines, may be called the Direct Selling Guidelines 2016.These are issued
as guiding principles for State Governments to consider regulating the business of
„Direct Selling‟ and Multi-Level Marketing (MLM) and strengthen the existing regulatory
mechanism on Direct Selling and MLM, for preventing fraud and protecting the
legitimate rights and interests of consumers.”
After the guidelines came into being, there has been tremendous growth in the network marketing industry. People are confidently working with companies related to Network Marketing.
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Which MLM companies are following guidelines?
To make things easy for people, ministry of consumer affairs has provided list of all the entities listed as direct selling on their website. Only the companies following guidelines are listed there.
Here is the link to the same: https://consumerhelpline.gov.in/directsellingentities/data-history.php
Important Update: This link of DIRECT SELLING entities is not working when we checked on 7th March 2021There might be some changes done by the Govt of India on the same.
Please be noted that even in this list some companies can be found to be defunct or not working but if a company is not listed in this list, you can be very cautious about its activities.