The guidelines issued by Ministry of Consumer Affairs on direct selling are good for consumers. The direct marketing done earlier using network of selling have cheated no. of consumers and they have also cheated govt. by not paying any tax like vat, sales tax, IT etc. Also there was no receipt issued to the consumers as per sale of goods Act 1930. Though the direct marketing didn't involve any pyramid schemes like other businesses still goods have been sold to the consumers with higher profits and in this multi layer marketing consumers have been utilized as an agent but no profit was distributed to the consumers. Also there was no refund policy existed and consumer was having no remedy to recover their money. There was no address of seller available hence consumer was unable to serve notice on seller.
There was no grievance redressel mechanism exist for consumers which has been included in this new guidelines is good for consumers. Also seller has to register himself as legal entity. Hence total transparency possible due to these guidelines. Also he has to declare reasonable commercial terms for full refund or buy back guarantee. Also there is a provision of cooling off period and post sale redressal of grevences which will help for quality marketing. The seller has to maintain proper records of goods and services. Hence seller will come into direct tax bracket. They have to display everything on their website is also very good as on today no physical address is available for consumers. Also Indian Contract Act 1872 has been made obligatory. So there will be transparency. Also they have to protect private information of the consumer and now application of consumer protection act is also mandatory to them. They have to maintain complaint register which is beneficial with respect to consumers and all the direct sellers including internet marketing, they have to provide information of seller, returning policy, warranty which is good step for protecting interest of consumers. They have also made prohibition of pyramid schemes and money circulation schemes. Hence number of consumers will be saved from dipping. state govt. and central govt. department will deal with direct selling and state govt. and central govt. will monitor it which is a good step in the interest on consumers. Hence ABGP congratulate government for issuance of guidelines related to direct selling. now some of the companies will say that there will be inspector raj but we dont think that it will be there if seller is fair.
Akhil Bhartiya Grahak Panchayat, Pune