Now direct selling entities selling or offering to sell goods or services must do so through a network of sellers

Department of Consumer Affairs through Consumer Protection (Direct Selling) (Amendment) Rules, 2023 has updated the definition of direct selling entity* to include network of sellers. Now principal entity which sells or offers to sell goods or services must do so through a network of sellers. The definition of Network of sellers has been newly inserted as “a network of direct sellers formed by a direct selling entity to sell goods or services for the purpose of receiving consideration solely from such sale”.

“Direct Selling Entity” means the principal entity which sells or offers to sell goods or services directly through a network of sellers, but does not include an entity which is engaged in a Pyramid Scheme or money circulation scheme.

Source : Department of Consumer Affairs