Centre notifies the Consumer Protection (Direct Selling) Rules, 2021


Union Government has notified the Consumer Protection (Direct Selling) Rules, 2021.

This has been done by the Central Government in exercise of the powers conferred by section 94 of the Consumer Protection Act, 2019.

These rules shall apply to all goods and services bought or sold through direct selling, all models of direct selling, all direct selling entities offering goods and services to consumers in India, all forms of unfair trade practices across all models of direct selling and also to also to a direct selling entity which is not established in India, but offers goods or services to consumers in India.

Where will these rules be applicable?
The new rules will be applicable to:

  1. All goods and services bought or sold through direct selling
  2. All models of direct selling
  3. All direct selling entities offering goods & services to consumers in India
  4. All forms of unfair trade practices in all models of direct selling
  5. Direct selling entity, not established in India but offering goods or services to consumers in India.

Under the Consumer Protection (Direct Selling) Rules, 2021 notified by the Consumer Affairs Ministry, state governments will have to set up a mechanism to monitor or supervise the activities of direct sellers and direct selling entities.

As per new rules, every direct selling entity has to establish an adequate grievance redressal mechanism and display the current and updated name, contact details including telephone number, email address and designation of such officer on its website, and the details of its website shall also be prominently printed on the product information sheet or pamphlet.

The grievance redressal officer will have to acknowledge the receipt of any consumer complaint within forty-eight working hours of receipt of such complaint. They shall redress the complaint normally within a period of one month from the date of receipt of the complaint and in case of delay of more than a month, reasons for the delay, and the actions taken on the complaint, are informed to the complainant in writing.

Every direct selling entity shall appoint a nodal officer who shall be responsible for ensuring compliance with the provisions of the Act and the rules made there under, and to ensure compliance with any order, or requisition, made in accordance with the provisions of any other law for the time being in force or the rules made thereunder.


Share