Condemning the sudden arrest of Amway CEO William S Pinckney on May 26 last by the Andhra Pradesh police, Indian Direct Selling Association (IDSA) called for amendment in the Prize Chits and Money Circulation Schemes (Banning) Act 1978 (PCMCS).
Unless amended, the law is unable to distinguish genuine direct selling companies from pyramid schemes and regular consumer complaints will continue to attract provisions of the PCMCS Act, IDSA said.
The association also demanded an immediate operational and definitional clarity to provide a framework to genuine direct selling companies for effective and unhindered operations.
IDSA secretary general Chavi Hemanth said, “International companies are reluctant to come to India because of the policy ambiguity in Indian direct selling industry which has been promoting self employment opportunities and women empowerment.”