West Bengal to take a view on direct selling biz after Centre finalises framework

West Bengal would take a formal view of regulating direct selling business after the Centre comes up with the broad legal framework for regulation of the sector.

West Bengal Minister of Consumer Affairs, Sadhan Pande, said this on Thursday at a FICCI State Council organised meeting on the business of direct selling.

He felt that some of the direct selling companies could consider setting up manufacturing units in the State or get into arrangement with local small sector organisation for producing their items.

The Minister said these companies could look into cutting their cost products by having a local unit, which could serve the eastern and northeastern regional markets.

Bejon Mishra, advisor to FICCI task force on direct selling, said a State-specific draft regulation on the sector was submitted to West Bengal Government.

Rajat Wahi, Partner & Head, Consumer Division of KPMG in India, said this was a legitimate business model. He felt stoppage of practice of taking a ‘membership fee’ a few years ago by the direct sellers from the consumers had made this channel cleaner.

“Now it is like a consumer loyalty programme; gives the consumers a choice without binding them in compulsion of buying the direct sold products”, he added.

Shyamashree Sen, President of Eastern Chamber of Commerce, pointed out that many of the direct sellers do not give receipts for their products and avoid paying taxes. ​