In the backdrop of Amway India's chief William Scott Pinckney's arrest, the Indian Direct Selling Association (IDSA) today asked the government to exclude the industry from prize chits and money circulation law.
The association has requested the government to amend the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (PCMCS Act) by inserting the definition of pyramid marketing schemes for identification of product-based money circulation scheme and to differentiate it from the business of direct selling and their incentive structure.
"It is for the safeguard of the direct selling industry. Until there is a definitional clarity, the direct sellers would continued to be harassed," said IDSA Chairman Ajay Khanna.
It has also asked to withdraw the price chit and money circulation rules as circulated to the states and alter it as per the proposed amendment in the PCMCS Act.
IDSA also requested the government to direct the Ministry of Consumer affairs to circulate a draft an internal trade regulation.
"This regulation should be adopted by the state government across the country for regulating the direct selling business. Based on that we would discuss with the respective state governments," Khanna said.
According to IDSA, the draft amendment was prepared by the previous UPA government, but could not get it implemented.
"Draft amendment bill has almost reached consensus on major provisions during the preceding two years and it now requires the Strong will of the new government to get the enactment passed in the parliament at the earliest," he added.
Association's demands came in the back drop arrest of the Indian head of US-based direct Amway William Scott Pinckney by the Andhra Pradesh Police under the PCMCS Act.
Pinckney was arrested on Thursday from Gurgaon in connection with a criminal case filed against the company under the PCMCS Act.
Earlier, he was also arrested by the Kerala police a year ago under the same act and following that the previous UPA government had formed a committee and drafted the amendments.
In FY 2012-13, direct selling had a turnover of Rs 7,164 crore and supporting the house hold income of 60 lakh people.
