According to IDSA (Indian Direct Selling Association), the finance ministry on recenlty gave its nod to set up a central agency to regulate the MLM (multi-level marketing) sector after several incidents duping consumers have come to light.
Mr. Chavi Hemanth, Secretary-General, IDSA said, “The industry has many fly by night operators. We want strong rules to curb these fraudulent operators from operating in the garb of genuine direct-selling companies”.
Genuine direct-selling companies in the country include Amway, Oriflame & Tupperware. The Indian direct-selling industry in India is expected to touch Rs. 7,120 crore by 2012-13.
The IDSA has been lobbying with the government for legislation for many years now. In the absence of necessary regulation, illegitimate pyramid schemes posing as direct selling companies/non-retail store companies have been duping consumers by promising them instant financial gains.
Mr. Chavi Hemanth, Secretary-General, IDSA said, “The industry has many fly by night operators. We want strong rules to curb these fraudulent operators from operating in the garb of genuine direct-selling companies”.
Genuine direct-selling companies in the country include Amway, Oriflame & Tupperware. The Indian direct-selling industry in India is expected to touch Rs. 7,120 crore by 2012-13.
The IDSA has been lobbying with the government for legislation for many years now. In the absence of necessary regulation, illegitimate pyramid schemes posing as direct selling companies/non-retail store companies have been duping consumers by promising them instant financial gains.
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