Direct Selling cos seek government regulation

Published on May 05, 2015 01:45:07 AM
Business
While other sectors are trying to get rid of the government regulation, Direct Selling is the only industry that is running after the Centre to frame rules and create a law to segregate the fraudsters from the genuine players in this business, said Shankar Bidari, former DGP, Karnataka during a seminar on ‘Direct Selling & impact on the livelihood of micro entrepreneurs’ organised by Federation of Indian Chambers of Commerce and Industry (FICCI)  on Monday.

Genuine companies doing direct selling business are suffering due to the Prize Chits & Money Circulation (Banning) Act. Government should bring an appropriate act to deal with direct selling business as there are many companies in this industry which are not offering quick or easy money but encouraging MSMEs and following ‘Make in India’ right from its existence, said Bidari.

Every business is commission based now-a-days. If real estate brokers can earn commission by selling properties why not direct selling agents shall make money in the same manner, he compared. Ponzi schemes and unscrupulous chit funds must be banned but not honest firms. The companies which follow ethical business practices can prosper by its nature and code of conduct, he added.

Expressing similar views, Bejon Mishra, founder of Consumer Online Foundation said that Direct Selling should be understood in the way it should be and there is a need to facilitate clear understanding of the concept of direct selling to give its due place. Referring to consumer protection, he said despite many laws, the consumer is left with no protection in reality and there was lot of confusion on nature of laws.