Conditions for Permissible Direct Selling




Should be a Direct Selling Entity, having sales tax/Vat, Income Tax, TDS and other license as may be required as per the law/regulations of its principle place of business. Should have bank account with at least one nationalised bank.


Partnership Deed or Memorandum of Association should clearly state their nature of business. (Those who do not have such specific clauses should get their memorandum of Association or Partnership Deed, as the case may be, amended within 2 months from the date of publication of these Guidelines).


Pay sales incentive at the agreed rate within the agreed period.


Shall display names and Identification numbers of their authorized Direct Sellers in the official websites.


Should have a consumer grievance cell that should ensure redressal of consumer grievances within 7 days from the date of making such complaints.


Website should provide space for registering consumer complaints hassle free.