1. Trade bodies hail government guidelines on direct selling

Trade bodies hail government guidelines on direct selling

The Confederation of All India Traders (CAIT) today welcomed the guidelines issued by the government for the direct selling industry.

By: | New Delhi | Published: September 13, 2016 7:16 PM
The 'Direct Selling Guidelines 2016' framework was released by the Food and Consumer Affairs Minister Ram Vilas Paswan. (Reuters) The ‘Direct Selling Guidelines 2016’ framework was released by the Food and Consumer Affairs Minister Ram Vilas Paswan. (Reuters)

The Confederation of All India Traders (CAIT) today welcomed the guidelines issued by the government for the direct selling industry.

The new guidelines would clean the evils of direct selling business and will regulate the eco-system in best possible manner, the CAIT said.

“This step of the Government will lead to women’s empowerment by creating opportunities towards self employment,” said CAIT in a statement.

Meanwhile, Federation of Direct Selling Association (FDSA) has said that the move would end the identity crisis faced by the industry.

Yesterday, to protect consumers from Ponzi frauds, the Centre had issued model guidelines for states to regulate direct selling and multi-level marketing businesses while prohibiting pyramid structures as well as money circulation schemes.

The ‘Direct Selling Guidelines 2016’ framework was released by the Food and Consumer Affairs Minister Ram Vilas Paswan and has been sent to the states and Union Territories for adoption.

FDSA, which claims to represent over 6 crore distributors associated further, said that industry is passing through turbulent times and the distributor’s morale is very low across the country, due to the prevailing ambiguity regarding the industry’s legal stand which was under question since long.

“The move is a milestone in formulating a win-win situation to both the consumers and the companies and appreciated the government for providing regulatory clarifications,” said FDSA President A P Reddy.

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