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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These guidelines shall be governed by Legal Metrology Act, 2009 to prevent frauds and Consumer Protection Act, 2019 to protect the legitimate rights and interests of consumers.
The Nodal Department will be the Department of Food, Civil Supplies and Consumer Affairs (The Monitoring Authority). It will set up a mechanism to monitor/ screen/ supervise the activities of Direct Sellers and Direct Selling Entity regarding compliance of these Guidelines. The violation of the State Guidelines shall be dealt appropriately by the Monitoring Authority.
Every Direct Selling Entity intending to carry out or engage in a direct selling business in the State of Punjab must have to enroll with the Department by filing an application within 30 days from the date of start of operation. An Enrollment/Registration fee will be levied for the said purpose and it can be revised from time to time.
In the garb of doing Direct Selling business in the State of Punjab, no person or entity shall promote a Pyramid Scheme and Money Circulation Scheme or enroll any person to such scheme or participate in such arrangement in any manner whatsoever.