Direct Selling Entity shall appoint/authorise Direct Sellers upon receipt and scrutiny of application in a prescribed format.

An agreement recording terms of such appointment should be executed between the Direct Selling Entity and Direct Seller.

No application should be considered unless such applicant is eligible to enter into a contract under the Indian Contract Act.

Each Direct Seller shall be allotted Unique Identification Numbers before granting license/permission to start Direct selling.

Direct Selling Entity should not give incentive to any persons for joining of Direct Sellers.