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Direct selling sector welcomes Govt initiatives on model guidelines

Our Bureau Hyderabad | Updated on July 17, 2013 Published on July 17, 2013

Any kind of amendments will find its own limitations in providing a favourable environment for smooth running of direct selling system.

The Federation of Direct Selling Association (FDSA) has welcomed the Government’s initiatives on framing of ‘model guidelines’ to segregate genuine direct selling with ponzi schemes.

The President of the Association, A.P. Reddy who was also present amongother stakeholders at a meeting held in the Corporate Affairs Ministry last month, has termed this development as a ‘rescue tender for Direct Selling Industry’ which is reeling under turbulent time, with distributormorale very low across the country.

The federation, which has over 6 crore distributors associated throughout the country, has strongly raised the issue of clear regulations in different platforms on various occasions since the existing rules and acts are not able to handle advancement of systems and introduction of newer methods of marketing, he said in a release.

Reddy also pointed out that in the absence of any suitable guidelines, incidents of harassment from State Government authorities and police administration have been reported in recent times. Any kind of amendments will find its own limitations in providing a favourable environment for smooth running of direct selling system. Largely, it is felt that a separate set of norms for the industry will be best suitable for consumers, distributors, self-employed entrepreneurs, he added in the release.

somasekhar.m@thehindu.co.in

Published on July 17, 2013
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