The Ministry of consumer affairs, India has published rules for Direct Selling (MLM) on 28th December,2021. These rules are named as Consumer Protection (Direct Selling) Rules 2021. Before 2019, there was no law in India which had identified MLM or Direct Selling but Consumer Protection Act 2019 defined Direct Selling or MLM as ‘marketing, distribution & sale of goods or provision of services through a network of sellers, other than through a permanent retail location’ From this Consumer protection act, Direct Selling Rules were created by taking power from clause (zg) of sub-section (2) of section 101 read with section 94 of the Consumer Protection Act, 2019.
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It is compulsory for Every new Direct Selling (MLM) Company to follow Direct Selling Rules from the first day & For existing Direct Selling (MLM) Companies, 90 days’ time were given to follow these rules which were completed on 28th March 2022.
Live Discussion About 1 Most Important Thing Which Everyone Missed In Direct Selling Rules 2021