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If you’re interested in starting your own direct selling venture, you need to be well versed with the legal compliance and legal risk associated with running direct selling business
DIRECT SELLING INDUSRTY IS SET TO EMPLOY 18 MILLION PEOPLE BY 2025 AS PER EXPERT PREDICTION law of the land.
Existing Direct Selling firms must comply with the new rules within 90 days
Both direct sellers and direct selling companies utilizing e-commerce platforms for sale must comply with the Consumer Protection (e-Commerce) Rules, 2020.
It is illegal for both direct selling entities and direct sellers to promote Pyramid Schemes or money circulation schemes.
The state government will establish a system to monitor or supervise direct sellers' and direct selling entities' operations.
Prevention of Money Laundering Act (Ed – Enforcement Directorate Cases)
Protection of Interest of Depositors (In Financial Establishments) Act
The Banning Of Unregulated Deposit Schemes Act
CIS (Collective Investment Scheme) Under SEBI
How should you formulate your business plan?
What are the licenses you possess?
Even if you have MLM license or Direct Sales license and a legitimate business plan, what else can put you in legal trouble & why?
Who is your legal advisor? Is he eligible and well equipped to save you from legal challenges or is he a part of a larger Ponzi scheme?
Are you looking for trending Ponzi scheme and trying to name them as direct selling ?
Is it legal to put few products & run ROI scheme indirectly?
How do you calculate your incentive?
Are you trying to implement Binary, Growth or Any other old method for Incentive calculation?
Are you using those motivators to brainwash your members?
The questions are many but you will never really find a legit answer as you are trying to sell greed to innocent public.