A Glance Into the Direct Selling Rules 2021

Learning and having a well-rounded knowledge about the field you are about to venture into is one of the most important steps a beginner must follow to succeed in any business, including direct selling. Keeping that in mind, do you think you are well prepared to enter the field of direct selling? Well, you may learn all about the practice of direct selling, the methods of marketing, networking, selling etc., by utilizing the resources around you. But is that knowledge enough when you enter the business field, an arena that deals with hard cash? Well, in my opinion, it is much safer and more logical to learn not only about the practices of direct selling but also the legalities, rules and conditions behind direct selling. Hence, I thought today it would do us good to discuss the direct selling rules of 2021.

Direct selling rules 2021: A glance

Before diving into the direct selling rules 2021, this article doesn’t have all the information regarding the direct selling rules 2021. I am just pointing out some of them so that you guys will have a basic idea about them. Moreover, this information is purely for educational purposes. So, on that note, let’s get into our topic.

So, just like any other company established in our country, the direct selling industry also functions by complying with the rules and regulations the Government of India propounded. That is why it is important for all of you who are venturing into the field of direct selling to be well-informed about the direct selling rules (2021).

This rule was passed on the 28^th of December 2021. This rule is officially named the Consumer Protection (Direct Selling) Rules, 2021. Well, this will be news to you if you thought, like most people in India, that direct selling business was banned in India. Well, folks, the truth is that it is an absolute misunderstanding. Direct selling is as legal as any other business in India. Moreover, just like any other business, you must comply with direct selling rules 2021 or the latest one to conduct business in this country. So, now, let’s look at some of the rules of 2021 that you, as an aspiring direct seller, should be aware of.

The Direct Selling Rules 2021

In the direct selling rules of 2021, the Central government has made it mandatory to maintain a record. That means every direct seller should maintain either a manual or electrical record. Some documents that should be maintained in such a record are a Certificate of Incorporation, Memorandum of Association and Articles of Association, Permanent Account Number and Tax Deduction and Collection Account Number, Goods and Services Tax registration, Goods and Services Tax Returns, Income Tax Returns etc.
Every Direct selling entity should exist as a Company, Limited Liability Partnership or Registered partnership.
The rule also mention that the direct selling entity should maintain an appropriate and updates website with all the relevant details, which is certified by the Company Secretary.

A direct-selling entity is supposed to have a minimum of one physical location as its registered office within the country.
All the products sold by the direct selling company will comply with declarations made under the Legal Metrology Act, 2009.

Furthermore!

They will create adequate safeguards to ensure that the goods and services offered by their direct sellers will conform or comply with the applicable laws.
The rule also make it clear that every Direct selling entity is supposed to have a prior written contract with the sellers in their company. It is only after signing this paperwork will the direct sellers get the authority to sell and offer their goods and services to customers.
Every direct selling entity is supposed to maintain a Grievance Redressal Mechanism. That means they should establish a mechanism for filing consumer complaints through their offices, branches, or direct sellers.

Moreover, every Direct selling entity is supposed to maintain a record of all the direct sellers working for them. They should have the details of the direct sellers, including their identity and address proof.

So, these are some of the clauses mentioned in the direct selling rules 2021. If you aspire to be a responsible direct seller, find a direct selling entity that follows all these parameters, like QNET. Or even better, join our QNET family and start your journey as a direct seller!