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More states in process to regulate direct selling industry: Minister

Centre has sent an advisory to state governments on the model framework for guidelines on direct selling after consultation with industry and stakeholders

More states in process to regulate direct selling industry: Minister

More states are in the process of notifying model guidelines issued by the Centre to regulate direct selling industry, Union Minister of State for Consumer Affairs, Food and Public Distribution, CR Chaudhary said at an ASSOCHAM conference on Direct Selling, held in New Delhi on Wednesday.
 
“We are glad that states like Sikkim and Chhattisgarh have started to actually notify these guidelines, likewise other states like Maharashtra, Karnataka and Tamil Nadu are in the process of notifying those guidelines,” Chaudhary said.
 
Stressing that Centre had sent an advisory to state governments on the model framework for guidelines on direct selling after consultation with industry and stakeholders, he said, “We cannot force them but many states are in the process and every state will adopt them in the due course.”
 
He also said that guidelines are very simple. “It is not in a pyramid structure and thus it will help the industry to grow at a faster pace and keep a check on fraudulent, fly by night operators.”
 
The ‘biggest achievement,’ of these guidelines he said, is the grievance redressal mechanism.
 
Ensuring the industry that Government would come up with a more progressive legislation in this regard, Chaudhary said, “We are further working on streamlining the policies thereby resolving issues and challenges through progressive legislation as we have the responsibility to safeguard both the industry and the consumer.”
 
He also said that though traditionally India was a pioneer in direct selling but with times changing now there is a need to bring about modifications in policies to further develop the industry.
 
He added that direct selling industry holds significant potential to provide ample of job opportunities to the youth along with self-employment for budding women entrepreneurs.
 
Suggesting the industry to come up with demand-driven products in wake of the rising consumer awareness, the Union Minister said, “Industry should not merely highlight challenges, problems and issues being faced by them but also come up with feasible solutions to resolve the same through deliberations to further develop the direct selling sector.”
 
Chaudhary further said that while the Centre would take steps to encourage sale of domestically produced goods, the industry should make effort to come up with ways to bring about co-ordination between e-marketing and direct selling as their goal remains the same.

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