Direct Selling Industry in India requires a separate regulation


Direct Selling Industry in India requires a separate regulation
The Issue
An appeal to every responsible Indian.
An estimated 1.79 Crore non-technical / poorly educated / illiterate people in India are solely dependent on Direct Selling for their survival.
In the absence of specific legislation, many unscrupulous companies started duping the consumers on the pretext of Direct Selling by collecting money on assured returns / land lease / plantation etc. The authorities applied traditional business laws and acted on them which are neither able to protect the genuine nor punish the fly-by-night operators. Thus, the genuine people are also facing the problem due to ignorance of administration and lack of proper definition of Direct Selling.
This is probably for the first time that an industry is not asking for any subsidy or help from the government; rather seeking strict regulation to carry out honest working for a disciplined growth in the national interest.
Kindly sign the petition to support the demand for a strict regulation on Direct Selling to protect the consumers and save the livelihood of deprived people who are silently contributing for our economy.
Direct Selling, a proven arm of Modern trade across the world entered in India during ‘90s. This is also considered as a most proven platform for soft skill development which has especially benefited the Indian non-technical / poorly educated / illiterate lot of society.
In the last twenty years Direct Selling business has given financial strength to many economically weaker families and raised the living standards of poor section of society, a feat which traditional business could not do in centuries. In India, more than 1.79 crore people are already making their livelihood from this industry by selling over 70% products of MSME sector procured by Direct Selling Companies.
Apart from implementing several government policies like
(a) Women empowerment
(b) Make in India and Support to MSME
(c) arresting rural migration – offering occupation at native places of residents
(d) creating entrepreneurship for the youth
the Direct Selling contributes 100% tax to the government through invoicing each & every sale, bringing people of remote area into tax net and opens opportunities for unskilled/illiterate people to climb higher on social ladder; who otherwise are destined to live in poverty without any contribution in Nation building.
Such powerful features of Direct Selling prompted several developed nations like USA, Australia, New Zealand, Singapore, Malaysia etc. to accept it as a support to economy and created specific regulation for this business in their country to empower people to choose self employment.
Bangladesh, emerging much after our Independence, with much smaller infrastructure; too suffered heavy damage on economy due menace created by the collective investment schemes operated from India based companies; they scared and worried. The Government of Bangladesh immediately came out with a stringent law to regulate the direct selling business on 20th August 2013, when the cabinet passed the Multi Level Marketing (Control) Act-2013 and gave a tribute to the nation.
It is already too late for India. Every year one or the other company is duping the innocent people of India with variety of Money circulation schemes & collective investment schemes. It is the time to distinguish Direct Selling from speculative business models.
In order to protect this strong system of channelizing human resources towards nation building, we require –
a. A clear definition of Direct Selling
b. Exemption from 2(c) & 2(e) of PCMC (Banning) Act 1978
c. A regulation or regulatory body for Direct Selling business in India

The Issue
An appeal to every responsible Indian.
An estimated 1.79 Crore non-technical / poorly educated / illiterate people in India are solely dependent on Direct Selling for their survival.
In the absence of specific legislation, many unscrupulous companies started duping the consumers on the pretext of Direct Selling by collecting money on assured returns / land lease / plantation etc. The authorities applied traditional business laws and acted on them which are neither able to protect the genuine nor punish the fly-by-night operators. Thus, the genuine people are also facing the problem due to ignorance of administration and lack of proper definition of Direct Selling.
This is probably for the first time that an industry is not asking for any subsidy or help from the government; rather seeking strict regulation to carry out honest working for a disciplined growth in the national interest.
Kindly sign the petition to support the demand for a strict regulation on Direct Selling to protect the consumers and save the livelihood of deprived people who are silently contributing for our economy.
Direct Selling, a proven arm of Modern trade across the world entered in India during ‘90s. This is also considered as a most proven platform for soft skill development which has especially benefited the Indian non-technical / poorly educated / illiterate lot of society.
In the last twenty years Direct Selling business has given financial strength to many economically weaker families and raised the living standards of poor section of society, a feat which traditional business could not do in centuries. In India, more than 1.79 crore people are already making their livelihood from this industry by selling over 70% products of MSME sector procured by Direct Selling Companies.
Apart from implementing several government policies like
(a) Women empowerment
(b) Make in India and Support to MSME
(c) arresting rural migration – offering occupation at native places of residents
(d) creating entrepreneurship for the youth
the Direct Selling contributes 100% tax to the government through invoicing each & every sale, bringing people of remote area into tax net and opens opportunities for unskilled/illiterate people to climb higher on social ladder; who otherwise are destined to live in poverty without any contribution in Nation building.
Such powerful features of Direct Selling prompted several developed nations like USA, Australia, New Zealand, Singapore, Malaysia etc. to accept it as a support to economy and created specific regulation for this business in their country to empower people to choose self employment.
Bangladesh, emerging much after our Independence, with much smaller infrastructure; too suffered heavy damage on economy due menace created by the collective investment schemes operated from India based companies; they scared and worried. The Government of Bangladesh immediately came out with a stringent law to regulate the direct selling business on 20th August 2013, when the cabinet passed the Multi Level Marketing (Control) Act-2013 and gave a tribute to the nation.
It is already too late for India. Every year one or the other company is duping the innocent people of India with variety of Money circulation schemes & collective investment schemes. It is the time to distinguish Direct Selling from speculative business models.
In order to protect this strong system of channelizing human resources towards nation building, we require –
a. A clear definition of Direct Selling
b. Exemption from 2(c) & 2(e) of PCMC (Banning) Act 1978
c. A regulation or regulatory body for Direct Selling business in India

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Petition created on 1 May 2016