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More states in process of notifying Centre’s guidelines to regulate direct selling industry: Minister


Wednesday, November 22, 2017

Industry should come up with consumer centric and demand-driven products
New Delhi, November 22, 2017: More states are in the process of notifying model guidelines issued by the Centre to regulate direct selling industry, Union Minister of State for Consumer Affairs, Food and Public Distribution, Mr C.R. Chaudhary said at an ASSOCHAM event held in New Delhi today.
“We are glad that states like Sikkim and Chhattisgarh have started to actually notify these guidelines, likewise other states like Maharashtra, Karnataka and Tamil Nadu are in the process of notifying those guidelines,” said Mr Chaudhary while inaugurating an ASSOCHAM conference on Direct Selling.
Stressing that Centre had sent an advisory to state governments on the model framework for guidelines on direct selling after consultation with industry and stakeholders, he said, “We cannot force them but many states are in the process and every state will adopt them in the due course.”
He also said that guidelines are very simple. “It is not in a pyramid structure and thus it will help the industry to grow at a faster pace and keep a check on fraudulent, fly by night operators.”
The ‘biggest achievement,’ of these guidelines he said, is the grievance redressal mechanism.
Ensuring the industry that Government will come up with a more progressive legislation in this regard, Mr Chaudhary said “We are further working on streamlining the policies thereby resolving issues and challenges through progressive legislation as we have the responsibility to safeguard both the industry and the consumer.”
He also said that though traditionally India was a pioneer in direct selling but with times changing now there is a need to bring about modifications in policies to further develop the industry.
He added that direct selling industry holds significant potential to provide ample of job opportunities to the youth along with self-employment for budding women entrepreneurs.
Suggesting the industry to come up with demand-driven products in wake of the rising consumer awareness, the Union Minister said, “Industry should not merely highlight challenges, problems and issues being faced by them but also come up with feasible solutions to resolve the same through deliberations to further develop the direct selling sector.”
Mr Chaudhary further said that while the Centre would take steps to encourage sale of domestically produced goods, the industry should make effort to come up with ways to bring about co-ordination between e-marketing and direct selling as their goal remains the same.
Mr. Zaheer Merchant, Director Corporate Affairs, QI Group shared insights from Asia-Pac Direct Selling Industry at the conference. He said, "In Singapore, the Direct Selling Association, a self-regulatory body works closely with the Consumer Association of Singapore (CASE) which provides independent accreditation for direct selling companies. 
In Malaysia, the Direct Selling Association works closely with the Ministry of Domestic Trade, Co-Operatives and Consumerism, Ministry of Finance, Ministry of Health and other government bodies to create and maintain an environment that is conducive to the growth and stability of the industry in Malaysia. DSA Malaysia’s Code of Conduct is an example of self-regulation. It is a strict and effective code of conduct implemented worldwide, and endorsed by the Ministry of Domestic Trade, Co-operatives & Consumerism, added Mr. Zaheer.

ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on
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