Frame separate law, implement Direct Selling Guidelines: ASSOCHAM plea to Consumer ministry

“The Department of Consumer Affairs must advise all states for speedy implementation of centre’s Direct Selling Guidelines in letter and spirit as that would help in recognising the sector and removing all misconceptions,” said ASSOCHAM secretary general, Mr D.S. Rawat in a communication addressed to Ram Vilas Paswan, Union Minister for Consumer Affairs, Food and Public Distribution.

Direct selling industry is often mistaken as pyramid and money circulation schemes which is adversely affecting growth of industry. “At grassroots level, complaints falling under the ambit of Consumer Protection Act are being redressed under the harsh provisions of criminal law or the Prize Chits and Money Circulation Schemes (Banning) Act 1978.”

ASSOCHAM suggested the union government to refurbish status of direct sellers and entrepreneurs by introducing necessary regulations and policy reforms to facilitate growth of the $1 billion worth direct selling industry which generates employment for about six million entrepreneurs.

It also highlighted that direct selling sector in India is facing harassment by local authorities on a variety of issues, mostly pertaining to wrong interpretation of subject matter thus there is a need for framing a separate law for the industry.

Direct selling sector is also facing credit related challenges as most banks do not recognising direct selling business as an entrepreneurial venture which leads to rejection of credit and loan sanction for the industry.

Besides, facilities of payment gateway are also not easily made available to direct selling entities.