IDSA sounds alarm on rogue cos

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Chennai, Jun 11 : The over Rs 4,000-crore Indian Direct Selling Association, comprising 16 members of domestic and global fame, on Wednesday sought the Union government’s recognition and asked to frame suitable legislative guidelines to not only protect the industry from mushrooming unscrupulous and fraudulent companies but also save the agents, customers alike from debt trap and financial losses.

Following a few incidents that rocked the belief of common man on the genuine direct selling companies in India, the Association has moved the Centre, seeking recognition while asking it to bring out suitable norms to counter the increasing growth of fraudulent companies under the guise of direct selling name, said David Stanley, chairman, IDSA.

Addressing a press conference here on Wednesday, he said that the association has come across a lot of incidents, involving unscrupulous companies cheating common public to the tune of hundreds of crores over the years.

“In order to safeguard the common public in general and the industry in particular, the Centre should take stock of the alarming situation and come out with suitable guidelines, thereby not only regulating the industry in a more organised manner but also bringing the culprits to the book,” he said.

India with its unique strength of trained and enterprising manpower offers immense potential for the direct selling industry and this has been proved time and again by the consistent growth of the industry over the past 13 years. For the fiscal ended 2006-07, IDSA has over 15 lakh agents under its belt with a total business of over Rs 4,000 crore, including Rs 1,500 crore from selling of insurance products directly.