Overview
Direct selling is a business model where products or services are sold directly to consumers outside permanent retail locations, usually through individual distributors or agents. In India, direct selling businesses are regulated under the Consumer Protection (Direct Selling) Rules, 2021, issued by the Department of Consumer Affairs. Any entity intending to operate a direct selling business must comply with these rules before commencing operations.
The objective of direct selling regulations is to protect consumers and distributors from unfair trade practices and pyramid schemes. Companies are required to follow strict norms related to onboarding of direct sellers, refund and buy back policies, grievance redressal mechanisms, and disclosures. Operating without compliance can lead to penalties, prohibition orders, and legal action.
Direct selling businesses must be registered as a legal entity in India and appoint key managerial personnel responsible for compliance. They are also required to maintain proper records, contracts with direct sellers, and consumer complaint systems. Compliance with state level requirements may also apply depending on the place of operation.
BizGlobal assists businesses in obtaining Direct Selling License and ensuring full compliance with applicable laws. From entity structuring and documentation to policy drafting, filings, and liaison with authorities, BizGlobal provides end to end support to set up a compliant and transparent direct selling operation in India.
