Maha govt to regulate direct selling companies and distributors

Mumbai, Nov 13 The Maharashtra government on Thursday has established a committee to frame rules and guidelines for regulating direct selling companies and their distributors operating in the state, which currently function without any oversight framework.

The committee is headed by the Deputy Secretary of the Food, Civil Supplies and Consumer Protection Department and comprises the Controller, Legal Metrology Department, Secretary, Indian Direct Selling Association, Under Secretary, Food, Civil Supplies and Consumer Protection Department and Section Officer, Food, Civil Supplies and Consumer Protection Department.

The government on Wednesday released a government resolution in this regard.

According to the government resolution, the committee will study the rules and guidelines related to direct selling implemented in other states and submit recommendations to the state government.

“Direct selling is a business model where companies sell products directly to consumers through independent distributors, bypassing intermediaries and traditional retail channels. In this process, distributors either purchase products from the company or earn commissions by selling directly to customers. Companies connect with consumers through direct sellers rather than through intermediaries or middlemen. Some companies sell directly in the market, while others use a network of distributors to sell their products,” said the government resolution.

In the current scenario, there are no specific regulations governing direct selling companies and vendors in the state. To address this gap, a meeting was organised in October by the state government to discuss the creation of guidelines for the supervision of the direct selling industry.

During this meeting, a decision was made to form a committee tasked with drafting the rules and guidelines for monitoring and supervising these companies and vendors, said the government sources.

The government’s move comes amid growing concerns about unregulated direct selling operations in Maharashtra, which is home to numerous multi-level marketing companies and independent distributors.

The absence of clear guidelines has created challenges in consumer protection and business oversight.

The committee is expected to submit its recommendations in the coming months, after which the state government will formulate comprehensive rules for the direct selling sector, said the government sources.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor