Applauding the Consumer Affairs Ministry for issuing new guidelines to companies involved in direct selling, the Federation of Direct Selling Association (FDSA) has described this development as "the end of an identity crisis" for the industry.
It said that these guidelines will help weed out fraudulent players, allow serious companies to grow and ensure protection of consumers.
The government has issued these guidelines to regulate the functioning of direct selling companies such as Amway, Oriflame, QNET, Avon and scores of Indian companies etc.
According to reports, the direct selling industry is presently facing turbulent times and the morale of distributors is said to be low due to the prevailing ambiguity over the industry's legal status. With the issuance of model guidelines, the government has clarified the industry's legal stand and removed all prevailing confusion.
A P Reddy, President, FDSA, which represents over six crore distributors across the country, expressed his happiness over the creation of a mechanism to monitor and supervise the activities of direct sellers. He thanked the union government for taking the initiative to issue the model guidelines.
The FDSA President, who is also among the stakeholders involved in consultations held with Consumer Affairs Ministry, described the new guidelines as a milestone that would create a win-win situation to both consumers and companies. He appreciated the government for providing regulatory clarifications.
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Reddy reiterated the support of the FDSA to the government in all matters pertaining to the direct selling sector, which provides lakhs of direct sellers' opportunities of self employment.
"Since the last five years, the FDSA has put in tremendous efforts in attracting the government to address the various problems faced by the industry. In this process, we at FDSA, left no stone unturned, and as a result, model guidelines for direct selling industry have finally been announced. We thank the FICCI and other organisations who have helped us in this mission," he said.
The direct selling industry is a reflection of Prime Minister Narendra Modi initiated Digital India, Start-up India, Make-In India, Skill India and Women Empowerment.
The model guidelines will be a yard stick to identify genuine direct selling companies and help consumers to keep from illegal pyramid schemes.