New Delhi: The Central Consumer Protection Authority (CCPA) has issued notices to as many as 17 direct-selling companies for allegedly acting in violation of the Consumer Protection (Direct Selling) Rules, 2021. Acts of thirteen entities are being probed and responses from three firms are still awaited, the ministry of consumer affairs, food & public distribution said in a statement on Friday.
The CCPA has initiated action against these companies as part of its regular measure to ensure compliance with regulations governing direct-selling activities and protect consumer interests.
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Many firms used to resort to direct selling of goods or services directly to consumers, typically by independent representatives. These representatives sell products through personal interactions, online platforms, or presentations at home, doing away with the need for retail outlets.
In a statement, the ministry said, “The 17 entities that have received notices for alleged non-compliance include Vihaan Direct Selling (India), a sub-franchise of QNet Group, Hong Kong; Triptales; Oriens Global Marketing; Zennesa Wellness; Orgolife Solutions; Oriflame India; Juncture Marketing, Wolte Marketing; Preet Life Care; Enroots Horizon; E Biotorium Network; Meghdoot Marketing; Suii Dhaaga Lifestyle; Winmarg Business; Ayusratna Natural Herbal; Biothon Lifecare; and Okflip India.”
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“Of these, only Oriflame India is a member of the IDSA (Indian Direct Selling Association) and fully complies with the Consumer Protection (Direct Selling) Rules, 2021. There was no violation by Oriflame India,” Vivek Katoch, chairman of IDSA said. “As the other companies are not members of the IDSA, I won’t comment on their practices,” he added.
Earlier, the Central government had proposed to set up a team to tighten rules under the Consumer Protection Act to rein in the direct-selling industry. The report said the department was scrutinising complaints filed against direct-selling companies for violations of the Consumer Protection (Direct Selling) Rules, 2021, and would devise a plan to ensure compliance after assessing these complaints.
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Reports said that the CCPA’s recent actions aim to counter deceptive practices in the direct-selling industry and ensure that businesses comply with established consumer protection laws. The ministry has called on all direct-selling entities to adhere to the rules, and emphasised the need for transparency and accountability in their operations.
