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The direct selling market in India’s Andhra Pradesh and Telangana states has the potential to attain a market size of Rs 50 billion (approx $765 million) by 2025, according to a FICCI KPMG report.
The market at present is worth approximately Rs 3.3-3.5 billion.

“AP and Telangana’s Direct selling Industry could potentially reach a size of Rs 50 billion by 2025. The sector’s contribution to the state governments revenue is expected to reach Rs 4.5-Rs 5 billion by the same period,” said the report on “Direct Selling Andhra Pradesh and Telangana-Global Industry Empowering Millions in India.”

The direct selling market grew at a CAGR of 15 per cent from 2010 to 2012 and witnessed a strong year-on-year growth from 2011 to 2012 to reach revenue in the range of Rs 4.3-4.5 billion, said the report which was

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Tupperware’s India Business Declines 4% In Q3

by Ramya Chandrasekaran • October 23, 2015 • 0 Comments

Tupperware India said business declined 4% during the July-September quarter, partly due to a legal issue in the Punjab and Haryana high court.
A month ago, a first information report (FIR) was registered against company officials for allegedly violating the Chits & Money Circulation Schemes Act. Tupperware India, has approached the Punjab and Haryana high court challenging the FIR by the Chandigarh Police. The FIR was registered against the company and its top management officials, including chief executive officer (CEO) Rick Goings, managing director, Tupperware India, Shilpa Ajwani among others.
The next hearing in the matter is on October 29, when the Chandigarh Police have to respond to the allegations of abuse of criminal process of law by its officials.

“We are dealing with some distraction in the Punjab area, the northern province where local authorities don’t really understand our entrepreneurial sales force structure and…that’s

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Indian Parliamentary Panel Proposes Model Central Law To Curb Ponzis

by Ramya Chandrasekaran • October 18, 2015 • 0 Comments

To protect people from ponzi schemes, a Parliamentary panel has suggested framing of a model central law with clear cut definitions to curb illegal money pooling activities done in the garb of direct selling.
Moreover, it said, the model law needs to define the scope of schemes in “unambiguous and specific terms” as broad definition of ‘money circulation’ has scope for large-scale circumventing by unscrupulous operators.
There have been rising instances of gullible investors getting cheated by fraudulent investment schemes that mostly offer high returns within a short period of time.
The Parliamentary Standing Committee on Finance has proposed a “model central law that would be comprehensive and all-encompassing including in its ambit collective investment schemes, chit funds, direct selling schemes and such other activities which are presently permissible but are defined and regulated in

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Indian Traders’ Body Wants Direct Selling Legislation

by Ramya Chandrasekaran • September 2, 2015 • 0 Comments

The Confederation of All India Traders (CAIT) has sought a separate legislation to regulate and monitor direct selling business in the country.

“The Indian direct selling industry is growing at a phenomenal rate and has a huge growth potential. More than 50 per cent distributors engaged in direct selling business are household women and in this way, the direct selling business is promoting women empowerment in the country to a distinct level”, said CAIT national secretary general Praveen Khandelwal.

CAIT in a a letter to Union minister for consumer affairs, food and public distribution Ram Vilas Paswan said, “Since the direct selling industry is poised for growth, it is imperative to bring it under an appropriate legislation. The legislation should include safeguards to protect the interest of industry as well as consumers. Parameters like minimum capital/equity

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India’s New Consumer Protection Bill To Include MLM Companies

by Ramya Chandrasekaran • August 10, 2015 • 0 Comments

A Bill seeking to set up a regulatory authority having powers to recall products and cancel licences of defaulting companies, including e-tailers, was introduced in the Indian Parliament’s low house, the Lok Sabha today.
The new Bill seeks to create a Consumer Protection Authority, which will also have the power to initiate class suit against defaulting companies and will fast-track the redressal of consumer grievances.
Explaining the rational behind bringing the new bill, sources said that misleading advertisements, tele-marketing, multi-level marketing, direct selling and e-tailing pose new challenges to consumer protection. Hence, there was a need to modernise the act to address the situation effectively.
The bill comes against the backdrop of emergence of complex products and services in the era of growing e-commerce business in India that has rendered consumers vulnerable to new forms

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India Puts MLM Legislation On Hold

by Ramya Chandrasekaran • August 4, 2015 • 0 Comments

A proposed Bill to check fraudulent multi-level marketing (MLM) schemes has been put on hold by the Indian government.
The Finance Ministry had started the process to amend Prize Chits and Money Circulation Schemes (Banning) Act, 1978, to check the menace of ponzi schemes which continue to defraud investors of their hard-earned money.
The ministry informed a recent meeting of representatives of Central revenue intelligence and law enforcement agencies that the amendment Bill “has been put on hold for the time being”, official sources said.
It was also informed that an inter-ministerial group (IMG) formed under Additional Secretary, Department of Economic Affairs, is looking into all aspects including the amendment of the Act, they said.
The Finance Ministry had earlier obtained comments from the industry on the amendments to the Act for a framework for regulation

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Proposed Amendment to Indian E-Commerce Law To Include MLM

by Ramya Chandrasekaran • May 30, 2015 • 0 Comments

As more Indian direct selling companies take advantage of e-commerce to expand their presence, the Indian government is pushing for a revamp of the Consumer Protection Act to protect the rights of consumers. The proposed amendments take care of new-age online and off-line models, including e-commerce, teleshopping, direct selling or multi-level marketing.
India’s Finance minister Arun Jaitley stressed the need for a provision where consumers can file class action suits against fraudulent sellers, particularly in the era of e-commerce, which is dynamically changing the marketplace.

“Globally, the best practice is you allow class action in these cases. You also have to regulate the extent of reviews and appeals and the grounds on which multiple appeals can be filed,” he said.

Consumer affairs minister Ram Vilas Paswan said consumers were often taken for a ride at

by Ramya Chandrasekaran • October 29, 2015 • 0 Comments

by Ramya Chandrasekaran • October 23, 2015 • 0 Comments

by Ramya Chandrasekaran • October 18, 2015 • 0 Comments

by Ramya Chandrasekaran • September 2, 2015 • 0 Comments

by Ramya Chandrasekaran • August 10, 2015 • 0 Comments

by Ramya Chandrasekaran • August 4, 2015 • 0 Comments

by Ramya Chandrasekaran • May 30, 2015 • 0 Comments