With the prior concurrence of the Central Government vide F.No.21/18/2014-IT (Vol-II), Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & Public Distribution, the Governor of Tamil Nadu makes "The Tamil Nadu Direct Selling Guidelines order, 2018". This order was issued vide No. SRO A-52/2018 by notification dated 1st October, 2018 and published in the Tamilnadu Government Gazette.
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It is clarified in these guidelines that the Direct Selling Entity will be responsible for the quality of products and services and it will guide and help the Direct Seller to follow best practices in the interest of consumers. The scope and specific liabilities of the Direct Seller in such cases will be defined in unambiguous terms in the contract signed. By way of providing in the contract, every Direct Selling Entity shall define and develop some mechanism to monitor the practices being adopted by its Direct Sellers.
The Nodal department to deal with the issues related to Direct Selling in the State of Tamilnadu will be the Cooperation, Food and Consumer Protection Department. State level monitoring committee is set up to monitor the activities of Direct Sellers with the officials namely,
The Joint Commissioner of Civil Supplies and Consumer Protection is appointed as the State Nodal Officer. District Supply Officer is Nodal Officer for each district. Any direct selling entity conducting direct selling activities in the State of Tamil Nadu shall submit an undertaking and Proforma to the nodal officers stating that it is in compliance with these guidelines.
Direct selling entities shall provide details of its incorporation and other business details as may be notified from time to time. Such undertakings need to be submitted to the Department annually.