In Sep. 2016, Central Government has issued Direct Selling Guidelines and made it compulsory for Direct Selling Companies to comply with these guidelines.
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The Government of India, Ministry of Consumer Affairs, Food and Public Distribution, Department of Consumer Affairs have issued the model framework for guidelines on Direct Selling/MLM. These guidelines are known as the Direct Selling Guidelines 2016. These are issued vide F. No. 21/18/2014 - IT (Vol-II) dated 9th September, 2016 and published in the Extraordinary Gazette of India.
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With the prior concurrence of the Direct Selling Guidelines issued by the Government of India, the Government of Andhra Pradesh, Consumer Affairs, Food & Civil Supplies (CS-II) Department, issued the guidelines for regulation of the business of ‘Direct Selling’ and ‘Multi-Level Marketing (MLM)’. This may be called as “The Andhra Pradesh Direct Selling Guidelines order, 2017”. These MLM Guidelines are issued by authority vide No. G.O.MS.No. 21 by notification dated 8th December, 2017 and published in the Extraordinary Gazette of Andhra Pradesh.
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In Pursuance of the Guidelines issued by the Government of India, the Government of Chhattisgarh, Department of Food, Civil Supplies and Consumer Protection issued the Guidelines for regulating the business of ‘Direct Selling’ and ‘Multi-Level Marketing (MLM)’ and strengthen the existing regulatory mechanism for preventing fraud and protecting the legitimate rights and interests of consumers. These Guidelines are known as “Direct Selling Guidelines, 2017”. These Guidelines are issued by authority vide No. F 10-18/2017/29-1/Food by notification dated 9th October, 2017 and published in the Extraordinary Gazette of Chhattisgarh.
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The Government of Kerala, Consumer Affairs Department issued Guidelines for monitoring mechanisms at state level for regulating the activities of Multi-Level Marketing / Direct Selling Companies / Entities in the state of Kerala based on central Guidelines. These are issued vide G. O. (P) No. 8/2018/CAD by notification dated 4th June, 2018.
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In implementation of the Direct Selling Guidelines issued by the Government of India, the Government of Goa, Ministry of Consumer Affairs, Food and Public Distribution, Department of Civil Supplies and Consumer Affairs issued the guidelines for regulation of the business of ‘Direct Selling’ and Multi-Level Marketing (MLM) and republished for general information of the public. These Guidelines are issued by authority vide No. DCS/ENF/DSB/18-19/256 by notification dated 28th November, 2018 and published in the Official Gazette of Goa.
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In pursuance of the Guidelines issued by the Government of India, the Governor of Maharashtra issued the Guidelines for regulating business of Direct Selling and Multi-Level Marketing (MLM). These are published to strengthen the existing regulatory mechanism on Direct Selling and Multi-Level Marketing (MLM) in the state of Maharashtra for preventing fraud and protecting the legitimate rights and interests of consumers. These Guidelines are issued vide No. CGC. 2016/CR-150/CP-2 by notification dated 10th July, 2019 and published in the extraordinary gazette of Maharashtra.
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In Pursuance of the Guidelines issued by the Government of India, Government of Himachal Pradesh, Food, Civil Supplies and Consumer Affairs Department issued the Guidelines for regulating the business of Direct Selling and Multi-Level Marketing (MLM) and strengthen the existing regulatory mechanism on Direct Selling and Multi-Level Marketing (MLM). These Guidelines are known as the "Himachal Pradesh State Direct Selling Guidelines, 2019". These Guidelines are issued by authority vide No. FDS-F (10)-412019 by notification dated 24th July, 2019 and published in the Rajpatra (e-Gazette), Himachal Pradesh for preventing fraud and protecting the legitimate rights and interests of consumers.
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In implementation of the Direct Selling Guidelines issued by the Government of India, the Government of Punjab, Department of Food, Civil Supplies and Consumer Affairs issued the guidelines for regulation of the business of ‘Direct Selling’ and Multi-Level Marketing (MLM). These guidelines are known as “The Direct Selling Guidelines of Punjab, 2020”. These MLM Guidelines are issued by authority vide No. STN/ADFS(2020)/113 by notification dated 21st October, 2020 and published in the Punjab Government Gazette.
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In pursuance of the Advisory published by the Government of India, the Department of Food, Civil supplies, and Consumer Affairs, Government of Karnataka notifies the “Karnataka Direct Selling Rules, 2019”. The Government has set up a monitoring mechanism for issues related to Direct Selling in the State. Every Direct Selling Entity and Direct seller must be in compliance with these guidelines. These Guidelines are issued by authority vide No. FCS 33 SLF 2019 and published in the official Gazette. These rules may be called as “Consumer Protection (Direct Selling) Rules, 2019“ and apply to the business of “Direct Selling” and “Multi-Level Marketing (MLM).
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