Direct Selling Industry

Consumer protection regulator CCPA on Friday said it has issued notices to 17 direct selling firms, including Oriflame India, for alleged unfair trade practices and violations of consumer protection rules. The notices have been served on companies such as Vihaan Direct Selling India, Triptales Pvt Ltd, Oriens Global Marketing, Zennesa Wellness, and others for alleged service deficiencies and non-compliance with the Consumer Protection (Direct Selling) Rules, 2021. An official statement revealed that 13 of these cases are under investigation, while replies from three companies are still awaited. The action comes in response to concerns about deceptive practices in the direct selling industry. The ministry warned that some fraudulent entities are misusing the direct selling model to promote illegal pyramid or money circulation schemes. These companies often make unrealistic promises of high commissions, foreign trips, and entrepreneurship opportunities contingent on recruiting ...

Consumer Affairs Secretary Rohi Kumar Singh on Friday told the direct selling industry that the authorities will not interfere with its business model as long as it is "right" and cautioned that the government cannot be taken for a ride. His remarks come against the backdrop of concerns and certain instances of direct selling businesses getting linked with money circulation and ponzi scheme activities. "As long as you are right, we are with you. But if money circulation is involved, subscription is not explained, then the government will interfere. You cannot take the government for a ride," Singh said while addressing a conference organised by the Confederation of All India Traders (CAIT). The government has taken action against certain entities in the direct selling industry for alleged misdoings. "The problem with your industry (direct selling) is perception... I am sure you are doing right but you need to work on your perception," he said and urged the industry to bring more ..

India has moved up to 11th position in the ranking of top markets of direct sellers, with retail sales of USD 3.23 billion (around Rs 26,852 crore) in 2022, global industry body WFDSA said in a report. Indian direct selling has registered a growth of 5.4 per cent over 2021 retail sales, said the World Federation of Direct Selling Association (WFDSA) report. On a constant dollar basis, the Indian market attained the highest Compounded Annual Growth Rate (CAGR) of over 13.3 per cent during the last three years, it added. The global direct selling industry reported a decline of 1.5 per cent in 2022 to USD 172.89 billion. The top market in the list was the US with USD 40.52, with a decline of 5 per cent over 2021, it said. It was followed by Korea, Germany, China, Japan and Malaysia. Indian Direct Selling Association (IDSA) Chairman Rajat Banerji said: "India's direct selling market is growing steadily and has the potential to place itself in the top five global markets over the next

Maharashtra and Bengal lead in direct selling revenues; Kerala has most extensive norms for industry

The direct sellers as well as the direct-selling entities using e-commerce platforms for sale will also need to comply with the requirements of the Consumer Protection Rules, 2020.

The entities have to ensure compliance with the rules within 90 days

India's direct selling industry is likely to have grown around 10 per cent in the Covid-hit FY21, according to industry stakeholders

The direct selling industry in Punjab has reported a turnover of Rs 523 crore in the pre-pandemic FY20, registering a growth of 6 per cent, said a report

Report calls for discontining practice of showcasing direct selling products in retail stores

"Once the bill is passed, we can frame rules," he said on the sidelines of the event

Affidavits filed to Ministry of Consumer Affairs urge abrogation of criminal proceedings

In an attempt to cleanse the sector, Centre's guidelines prohibit use of pyramid structure and money circulation scheme in any direct selling firm, besides ensuring safety net for consumers through multiple steps

At a CAGR of 46%, Assam has been one of the fastest growing direct selling states in India between financial year 2010 and financial year 2014, says a joint study by Ficci and KPMG