Question : Mandatory Registration of Direct Selling Companies

(a) whether the Government has issued draft rules for mandatory registration of direct selling companies;
(b) if so, the details thereof;
(c) whether the aforesaid rules have any legal backing and violation will attract any penalties;
(d) if so, the details thereof;
(e) whether the Government has fixed any time limit to comply with these norms; and
(f) if so, the details thereof?

Answer given by the minister

THE MINISTER OF STATE
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(SHRI ASHWINI KUMAR CHOUBEY)

(a) to (f) : Under the provisions of the Consumer Protection Act, 2019, draft Consumer Protection (Direct Selling) Rules, 2021 were put on the website of the Department of Consumer Affairs for seeking views/comments/ suggestions. The draft rules, inter-alia, have provisions for mandatory registration of direct selling entities, provisions pertaining to contravention of the Rules and a time limit of 90 days for compliance by the direct selling entities, from the date of publication of the Rules in the official gazette.

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