Financial pyramid scheme operating under the garb of direct selling is the biggest challenge, says Chavi Hemanth
The Indian Direct Selling Association representing 19 entities such as Amway, Tupperware and Oriflame is hopeful of a Central law to regulate the industry to materialise shortly with the Union Ministry of Consumer Affairs setting the process in motion.
A uniform regulatory mechanism, IDSA secretary general Chavi Hemanth says, becomes necessary for the industry as also thousands of people, including women, who earn a livelihood as direct sellers to smoothly conduct business. It would also help weed out “fraudulent operators”, she said, adding that the Ministry was working on such a legislation. “First step would be a law, followed by a regulator [agency],” she said. An inter-ministerial group has also been constituted, she said, even while underscoring the need for the proposed legislation to make the direct sellers accountable for their actions too as “they are finally benefiting from the business opportunity.”