Eight states have established committees to oversee direct selling operations. These efforts aim to enhance the regulatory framework, combat fraudulent schemes, and safeguard the interests of direct sellers and their companies. The establishment of these committees is expected to provide policy clarity and protect the direct selling industry within the respective states.
In December 2021, the central government introduced the Consumer Protection (Direct Selling) Rules, which include a provision for state governments to establish monitoring committees. These committees are responsible for overseeing the operations of direct sellers and direct selling companies. The purpose of these committees is to ensure compliance with regulations and promote transparency in the direct selling industry.
India's direct selling industry, valued at approximately Rs 19,000 crore, has encountered challenges due to fraudulent schemes disguised as legitimate direct selling activities. These instances have posed significant obstacles for the industry, leading to concerns regarding consumer protection and trust.
Governments in Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, Chhattisgarh, Kerala, West Bengal, Goa, and Punjab have successfully established and officially notified monitoring committees within their respective states.
In addition to the established monitoring committees, the Indian Direct Selling Association (IDSA) is actively engaging in discussions with other state governments to establish similar committees. These dialogues have reached an advanced stage with some of the states. IDSA is working towards expanding the presence of monitoring committees to ensure the protection and regulation of direct selling activities across various regions in the country.
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