OBLIGATIONS
The direct selling entities engaged in the business are obligated to:
- Carry their identity cards whenever making the deliveries to the consumers;
- hold the ownership, license, or any other required permit to any trademark, service mark or identification to the goods or services sold or supplied under the direct selling operation;
- the entity shall maintain a record book about all the aspects of the business, including prices, sales, details of direct sellers, etc.;
The company, on the other hand shall be responsible to maintain and update its website regarding all the aspects of the product, its contracts with direct sellers and provide for a complaint redressal forum on such website.
The website that the entity has to maintain and update has to have in clear terms the following information:
- legal name of the direct selling entity; all official addresses of its offices and branches;
- contact details of customer care and grievance officer; for the ease of tracking, a ticket number shall be issued and displayed for each complaint lodged through the website;
- All information regarding return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, and grievance redressal mechanism, and any other similar information;
- Acceptable payment methods and the security of those methods, any applicable fees or charges payable by users, chargeback options, and the contact details of the relevant payment service provider;
- Total MRP in single figure for any and all goods or service along with the detailed breakup price, showing all the compulsory and voluntary charges, such as GST, delivery charges, any voluntary donations, etc.;
- The website shall also display at all times:
- the name of the purchaser and seller;
- the estimated delivery date of goods or services;
- the country of origin of the product;
- month& year in which the product is manufactured;
- the procedure for return of the goods;
- warranty of the goods;
- exchange or replacement of goods in case of defect.
- Finally, the website shall also publish all mandatory notices and required information along with all contractual information requiring disclosure.
PROHIBITIONS
These prohibitions are applicable to both the company and the direct sellers engaged:
- the entity shall not deceive, misrepresent, mislead or use any other unfair practice while dealing with the consumers, either prospective or existing;
- the entity shall not make factual promises or make such representation to prospective consumers;
- the entity shall not do anything that causes a misled and misrepresented promotion of the products;
- the entity shall also not ask the direct sellers to pay an entry or any other kind of benefit to enter into the direct selling operation, and neither shall the entity ask for monetary fee from the direct sellers to renew the subscription;
- the entity shall not pay benefit to any person introducing direct sellers to the entity.
- there is also a prohibition on the entity from involving into pyramid scheme or money circulation scheme. Per the guidelines, any and every member of the entity shall be responsible to follow the guidelines, whether appointed directly or indirectly.
The direct selling entities engaged in the business are obligated to:
- Carry their identity cards whenever making the deliveries to the consumers;
- hold the ownership, license, or any other required permit to any trademark, service mark or identification to the goods or services sold or supplied under the direct selling operation;
- the entity shall maintain a record book about all the aspects of the business, including prices, sales, details of direct sellers, etc.;
The company, on the other hand shall be responsible to maintain and update its website regarding all the aspects of the product, its contracts with direct sellers and provide for a complaint redressal forum on such website.