Consumer Protection (Direct Selling) Rules

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29 December 2021 Current Affairs:The Consumer Protection (Direct Selling) Rules, 2021, have been published by the Central Government.


  • Direct selling entities and direct sellers are prohibited from Promoting a Pyramid Scheme or enlisting anyone in these schemes under the notified rules.
  • Participating in a money-transfer scheme
  • State governments have been given the responsibility of monitoring compliance with these rules.
  • Direct Selling Entities are required to have at least one physical location as a registered office within India, according to the rules.
  • They should make a self-declaration that the Direct Selling Entity has followed the rules and is not involved in a pyramid scheme or money circulation scheme.
  • All products sold by a direct selling company must adhere to the declarations made under the Legal Metrology Act of 2009.
  • A proper grievance redressing mechanism must be established by the direct selling entity. On their website, they will have to display the current and updated name, as well as other information.
  • The website address must be prominently displayed on the product information sheet or pamphlet.

New Rules

  • The following will be subject to new rules:
  • Direct selling encompasses all goods and services purchased or sold.
  • All direct selling businesses that sell goods and services to consumers are included.
  • All direct selling models
  • Unfair trade practices of any kind in any model of direct selling
  • A direct selling company that is not based in India but sells goods and services to Indian consumers.

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