New Delhi, December 5, 2017

Amid demands for a legal status to the direct selling industry, Consumer Affairs Secretary Avinash K Srivastava said on Tuesday that it can be regulated by framing rules under the proposed consumer protection Bill. In 2016, the government had issued guidelines for the direct selling industry and differentiated it from Ponzi schemes.

Chhattisgarh and Sikkim have already adopted them and few more are in the process of doing so. Since the guidelines are not binding, states have been slow in adopting them. “Some States are adopting the guidelines.

However, to regulate the sector properly, we have got a provision to frame rules under the consumer protection bill,” Srivastava said at an event organised here by industry body FICCI.

[The Hindu Business Line]