In 2016, the Department of Consumer Affairs had notified the Direct Selling Guidelines as guiding principles for state governments to regulate direct selling and multi-level marketing. Currently, 12 states — Chhattisgarh, Sikkim, Telangana, Andhra Pradesh, Odisha, West Bengal, Goa, Rajasthan, Tamil Nadu, Kerala and Mizoram — have already adopted these guidelines.
The northern states such as Haryana, Punjab, Himachal Pradesh, J&K and UT of Chandigarh are yet to adopt these norms.
“The lack of government intervention creates an impression of mistrust among the consumers. The adoption of framework will help MSMEs, direct selling industry and the consumers,” said Rishi Chandiok, regional director (South Asia), QNET.