Plea to define direct selling companies
The Direct Selling Industry has demanded the government to define the industry and bring a law to regulate the growing sector.
By PTI |
CHENNAI: With several multi-level-marketing companies brought under the scanner of the police, the Direct Selling Industry on Wednesday demanded that the government define the industry and bring a law to regulate the growing sector.
Indian Direct Selling Association, which had 16 major companies, selling fast moving consumer durables, said the failure of several MLM companies had brought a bad name to the direct selling companies, for no fault of theirs.
The association president, David Stanley, told that the Department of Consumer Affairs, government of India,should define the direct selling companies, who without any dealership network, were approaching the consumers directly, through their members.
'People think that we are also multi-level marketing companies. It is not true, MLMs have a pyramid set up, under which one person admits more members under him.
After some time, the company is closed down, putting their members into doldrums. We are not like that. We have a code of conduct for our business and will not deviate from that', he said.
Only if the Centre came out with a law, the direct selling industry could thrive, he said.
He said direct selling companies offered goods at a cheaper rate, as there were no middlemen and no expense on advertisements. "We believe the word of mouth from our members is the best advertisment", he said.
Indian Direct Selling Association, which had 16 major companies, selling fast moving consumer durables, said the failure of several MLM companies had brought a bad name to the direct selling companies, for no fault of theirs.
The association president, David Stanley, told that the Department of Consumer Affairs, government of India,should define the direct selling companies, who without any dealership network, were approaching the consumers directly, through their members.
'People think that we are also multi-level marketing companies. It is not true, MLMs have a pyramid set up, under which one person admits more members under him.
After some time, the company is closed down, putting their members into doldrums. We are not like that. We have a code of conduct for our business and will not deviate from that', he said.
Only if the Centre came out with a law, the direct selling industry could thrive, he said.
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He said direct selling companies offered goods at a cheaper rate, as there were no middlemen and no expense on advertisements. "We believe the word of mouth from our members is the best advertisment", he said.
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