Usher legislative framework for Direct Selling Multi-Level-Marketing (DS/MLM) Industry in India and stop the mischief of ‘Prize Chits and Money Circulation Schemes (Banning) Act 1978’

The Issue

Direct Selling/Multi-Level-Marketing (DS/MLM) Industry is in a crisis situation today. Help save this industry by joining and supporting this online petition.

The Direct Selling Industry has been operational in India for almost 2 decades and currently provides income opportunity to over 7 crore Indians with a gross estimated industry turnover of Rs. 20,000 crores. Genuine direct selling companies manufacture and/or source products that are consumed and promoted by its distributors.

The problems faced by genuine DS/MLM companies can be summarized due to the following.

  • Fraudulent Companies: Taking undue advantage of the success of genuine DS/MLM companies many local businesses have floated fraudulent schemes cheating countless citizens of their hard-earned money. These companies are not product based and pure money circulation schemes paying commission to its members for recruiting people and not selling products.
  • Lack of Legislation: There is no law/regulation that helps differentiate the genuine product-sales based DS/MLM companies from these fraudulent schemes which are nothing but ponzi/pyramid schemes.
  • Identity Crisis and Police Harassment: In the absence of a clear legislative framework the Police are unable to distinguish genuine DS/MLM companies from fraudulent ponzi/pyramid schemes and in many cases end-up harassing the genuine DS/MLM companies and their members.

 

If you are a member of any genuine DS/MLM company operational in India, or even just someone who knows the industry, understands it and wants to support it - the industry needs your help today!

Besides providing income opportunity to crores of Indians the industry is also unique in some other aspects listed hereunder and possibly the reasons why you might want to support it with your valuable participation.

  • Supports 7 Crore Indians + Families: Even in urban areas, Direct Selling is one of the most engaged supplementary income business opportunity for Indians. Approximately 7 crore Indians are estimated to be full /part-time involved in this business for augmenting or fully supplying their household incomes.
  • Open: Direct Selling does not require specialized experience, skills or language familiarity as one operates within their own community.
  • Grass Root Employment Opportunity: Direct Selling is one of the very few options of self-employment in situations where traditional industry and employment options are not available.
  • Women Empowerment: Many unemployed Indian housewives engage in this industry (though there are still more men than women in India engaged in this business model as of now).  Research indicate that lack of a legislative framework has been the biggest deterrent for more women entering this industry as they don’t feel safe given the random and arbitrary arrests of its members by police.
  • Zero Start-up Cost: The start-up cost to enter this business is zero since genuine companies do not charge sign-up fees in India.
  • Performance: Direct Selling has grown at an exponential rate all over India and amongst the few industries to have consistently posted double digit growth averaged over the last approximate 2 decades.
  • Society Building: Direct Selling offers phenomenal opportunity and platform for individual personality development. Better individuals make better families and stronger families a better society.
  • Contribution to Economic Growth: With an estimated turnover of Rs. 20,000 crores the DS/MLM industry contributes thousands of crores by way of statutories to the exchequer.

 

 

 

 

 

avatar of the starter
FDCIndia BangalorePetition StarterFDCI is a joint forum of Direct Selling Companies, Distributors/Networkers, Consumers and Manufacturers formed for the purpose of helping bring legislation for MLM/DS industry in India, working with both the Central and State Governments.
This petition had 6,419 supporters

The Issue

Direct Selling/Multi-Level-Marketing (DS/MLM) Industry is in a crisis situation today. Help save this industry by joining and supporting this online petition.

The Direct Selling Industry has been operational in India for almost 2 decades and currently provides income opportunity to over 7 crore Indians with a gross estimated industry turnover of Rs. 20,000 crores. Genuine direct selling companies manufacture and/or source products that are consumed and promoted by its distributors.

The problems faced by genuine DS/MLM companies can be summarized due to the following.

  • Fraudulent Companies: Taking undue advantage of the success of genuine DS/MLM companies many local businesses have floated fraudulent schemes cheating countless citizens of their hard-earned money. These companies are not product based and pure money circulation schemes paying commission to its members for recruiting people and not selling products.
  • Lack of Legislation: There is no law/regulation that helps differentiate the genuine product-sales based DS/MLM companies from these fraudulent schemes which are nothing but ponzi/pyramid schemes.
  • Identity Crisis and Police Harassment: In the absence of a clear legislative framework the Police are unable to distinguish genuine DS/MLM companies from fraudulent ponzi/pyramid schemes and in many cases end-up harassing the genuine DS/MLM companies and their members.

 

If you are a member of any genuine DS/MLM company operational in India, or even just someone who knows the industry, understands it and wants to support it - the industry needs your help today!

Besides providing income opportunity to crores of Indians the industry is also unique in some other aspects listed hereunder and possibly the reasons why you might want to support it with your valuable participation.

  • Supports 7 Crore Indians + Families: Even in urban areas, Direct Selling is one of the most engaged supplementary income business opportunity for Indians. Approximately 7 crore Indians are estimated to be full /part-time involved in this business for augmenting or fully supplying their household incomes.
  • Open: Direct Selling does not require specialized experience, skills or language familiarity as one operates within their own community.
  • Grass Root Employment Opportunity: Direct Selling is one of the very few options of self-employment in situations where traditional industry and employment options are not available.
  • Women Empowerment: Many unemployed Indian housewives engage in this industry (though there are still more men than women in India engaged in this business model as of now).  Research indicate that lack of a legislative framework has been the biggest deterrent for more women entering this industry as they don’t feel safe given the random and arbitrary arrests of its members by police.
  • Zero Start-up Cost: The start-up cost to enter this business is zero since genuine companies do not charge sign-up fees in India.
  • Performance: Direct Selling has grown at an exponential rate all over India and amongst the few industries to have consistently posted double digit growth averaged over the last approximate 2 decades.
  • Society Building: Direct Selling offers phenomenal opportunity and platform for individual personality development. Better individuals make better families and stronger families a better society.
  • Contribution to Economic Growth: With an estimated turnover of Rs. 20,000 crores the DS/MLM industry contributes thousands of crores by way of statutories to the exchequer.

 

 

 

 

 

avatar of the starter
FDCIndia BangalorePetition StarterFDCI is a joint forum of Direct Selling Companies, Distributors/Networkers, Consumers and Manufacturers formed for the purpose of helping bring legislation for MLM/DS industry in India, working with both the Central and State Governments.

The Decision Makers

Dr. Manmohan Singh
Dr. Manmohan Singh
Prime Minister of India
Shri Pranab Mukherjee
Shri Pranab Mukherjee
President of India
Shri Sushil Kumar Sambhajirao Shinde
Shri Sushil Kumar Sambhajirao Shinde
Home Affairs Minister
Shri P Chidambaram
Shri P Chidambaram
Finance Minister
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