Direct Selling Guidelines by Rajasthan Govt:
RAJASTHAN GAZETTE EXTRAORDINARY
ON 5TH OCTOBER 2012
Industries Gr-1 Department
Jaipur
No. F5(2) Ind/1/2012: To regulate the sale of goods and services outside of retail establishments otherwise known as "Direct Selling (Multi Level Marketing)" and to provide for protection of consumers who purchase goods and services from direct sellers, following guidelines are issued with the approval of the Competent Authority, These guidelines will come into force from the date of publication in official Gazette and will remain in force till an appropriate legislation is enacted for the said purpose.
Conditions for Permissible Direct Selling:
1. Should be a Direct Selling Entity, having sales tax/Vat, Income Tax, TDS and other licenses may be required as per the law/regulation of its principle place of business
2. Should have bank account with at least one nationalized bank.
3. Partnership Deed or Memorandum of Association should clearly state their nature of business. (Those who not have such specific clauses should get their memorandum of Association or Partnership Deed, as the case may be amended within 2months from the date of publications of these Guidelines.
4. Pay Sales Incentive at the agreed rate within the agreed period.
5. Shall display names and Identification Numbers of their authorized Direct Sellers in the official websites.
6. Should have a consumer grievance cell that should ensure redressal of consumer grievances with in 7days from the date of making such complaints.
7. Website should provide space for registering consumer complaints hassle free.
Appointments/Authorizations
1. Direct Selling Entity shall appoint/authorize Direct Sellers upon receipt and scrutiny of application in a prescribed format.
2. An agreement recording terms of such appointment should be executed between the Direct Selling Entity and Direct Seller.
3. No application should be considered unless such applicant is eligible to enter into a contact under the Indian Contract Act.
4. Each Direct Seller shall be allotted Unique Identification Numbers before granting license/permission to start Direct Selling.
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