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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The Government has formed a monitoring authority to regulate the business of Direct Selling / Multi-Level Marketing to prevent fraud and protect the legitimate rights and interests of consumers. The Secretary/Principal Secretary Department of Consumer Affairs will be the Chairman of the monitoring authority. Monitoring authority will be responsible for providing awareness among law enforcement authorities, consumers, direct sellers and the general public.
Any direct selling entity conducting direct selling activities in the State of Kerala shall enroll with the Monitoring Authority by filing an application. Every Direct Selling Entity should submit reports to the Monitoring Authority within 20/45 days from the end of each Quarter/Financial year regarding the training, enrollment, termination, active status, purchase value, remuneration paid along with tax particulars.