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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Any Direct Selling Entity conducting Direct Selling business in the state shall submit an undertaking of compliance to the Nodal Officer appointed at the State Level. Such undertakings need to be submitted to the Department Annually. The Department of Consumer Affairs / Food and Civil Supplies will be the Nodal department to deal with the issue related to Direct Selling.
If any Direct Selling Entity violates these Rules, the Registering Authority may pass an order of cancellation of registration besides initiating the criminal action for having indulged in unfair trade practices.