Telangana issues guidelines for direct selling industry

The Telangana Government has come out with guidelines regulating the business of direct selling industry.

With this order issued recently, Telangana now joins Chhattisgarh and Sikkim in coming out with such guidelines.

The 'Telangana Direct Selling Guidelines Order 2017,’ adopts the Central Guidelines and provides clarity for Direct Selling industry.

Apart from incorporating a strong consumer protection mechanism, the guidelines have provisions for appeal and revision to be monitored by designated authorities.

The Central Government's Department of Consumer Affairs had notified the Direct Selling Guidelines in 2016, to serve as a model framework on guiding principles for state governments to consider regulating Direct Selling and Multi-Level-Marketing.

It has advised the State governments to adopt the Guidelines to strengthen existing regulatory mechanism on Direct Selling and Multi-Level-Marketing, for preventing frauds and protecting the legitimate rights and interests of consumers.

“Southern Region is a very big market for Direct Selling Industry with a 23 per cent market share and Telangana is a very important state for most of the Direct Selling Entities. It is a very positive step from the Government of Telangana to bring Direct Selling under the ambit of regulatory framework,” Vivek Katoch, Chairman Indian Direct Selling Association, said in a statement.

These Guidelines lay foundation for consumer protection and safety, a prime concern for the Direct Selling Industry.

Incorporated in 1996, IDSA is an autonomous, self-regulatory body for the Direct Selling industry in India.