To protect public from fraudulent ponzi schemes being peddled as direct selling, a new set of guidelines is likely to be put in place soon to regulate this sector.
The Department of Consumer Affairs Ministry has finalised the guidelines for the Rs72,000 crore direct selling industry and the same is expected to be notified.
The guidelines will define direct selling and how it is different from the other money circulating scheme. The direct selling should always be linked with products and there should be a buyer-seller agreement, sources said.
In a meeting with industry stakeholders held last month, Consumer Affairs Minister Ram Vilas Paswan had discussed the draft guidelines prepared by the inter-ministerial panel and took their final views.