Tag Archive for Legislation

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DSA Advocacy Drives Historic Committee Vote: H.R. 3495 Advances as Entrepreneurs Rally on Capitol Hill

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Most Significant Federal Step Since 1982 Comes as DSA-Led Delegation Meets with 100+ Lawmakers to Defend Independent Work
Direct Selling Association (DSA) announced today that the House Committee on Education and the Workforce, chaired by Rep. Tim Walberg (MI-5), successfully moved The Direct Seller and Real Estate Agent Harmonization Act out of committee, marking the most significant legislative victory for the direct selling channel in decades.
The milestone vote coincided with DSA’s annual Direct Selling Day on Capitol Hill, where 85 direct sellers and executives from 14 DSA member companies from across the country are meeting with more than 100 elected officials to highlight the channel’s impact and advocate for independent entrepreneurs.

H.R. 3495 would explicitly define direct sellers and real estate agents as independent contractors under the Fair Labor Standards Act (FLSA), harmonizing federal law with the Internal Revenue Code, which has recognized this classification since 1982. The bill provides clarity and protection for millions of Americans who build businesses in these industries, reducing legal uncertainty and strengthening entrepreneurial opportunity.

“This is proof that advocacy works,”

said Dave Grimaldi, CEO of the Direct Selling Association.

“We brought entrepreneurs from across the U.S. to Capitol Hill to share their stories and explain the real-world value of

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India’s AP State Chief Minister Assures Industry Of Legislation

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Andhra Pradesh Chief Minister N Chandrababu Naidu has assured the industry on addressing the need for creating a regulatory framework for direct selling. 
 
A delegation from Federation of Indian Chamber of Commerce & Industries (FICCI) consisting of key industry leaders, government officials and FICCI representatives met at Andhra Bhawan in New Delhi and presented the Chief Minister with FICCI’s Direct Selling report on Andhra Pradesh and Telangana.
 
While releasing the report Naidu stated the importance of Self Help Groups (SHGs) such as ‘Dokra’ for the growing importance of women empowerment in society. This sector in particular, has a major chunk of women retailers working independently.
 
According to the report, the direct selling industry has the potential to attain a market size of Rs 50 billion in Andhra Pradesh and Telangana by 2025, driven by growth in the consumer markets and

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Centralised Regulator For Direct Selling Industry Needed: IICA

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There should be a centralised regulatory mechanism and a mandatory registration process for all direct selling entities operating in the country, a study by Indian Institute of Corporate Affairs (IICA) says. The IICA works under the aegis of India’s Ministry of Corporate Affairs.
The whitepaper on regulation of direct selling in India, called for setting up of a centralised regulatory mechanism to redress the regulatory uncertainty existing in the country.
It also recommended a mandatory registration process for all such entities in the country, on the lines of the mandatory SEBI registration for all schemes soliciting investments.

“Registration for players in the direct selling industry should be done through the proposed central regulatory body for the industry,” it said.

The study also called for drafting clear definition of direct selling “so that law enforcement agencies could easily differentiate

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Indian Traders’ Body Wants Direct Selling Legislation

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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 To Introduce New SOPs For Law Enforcement Investigating Illegal MLM

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A new set of Standard Operating Procedures (SOP) is being formulated by the government for central and state law enforcement agencies for probing illegal multi-level marketing or ponzi schemes. 
Sources said the dos and don’ts for investigating these fraudulent schemes are being drawn up by Central Economic Intelligence Bureau (CEIB) in coordination with Department of Financial Services. 
The move comes following instances in which investors have been duped of their hard earned money through ponzi schemes–a swindle in which quick return on an investment is offered. 
Sources in the CEIB, which acts as the nodal agency for economic intelligence, said they will share the SOP with investigating agencies once they are finalised. 
Major such scams being probed include those relating to Rose Valley and Saradha chit fund wherein investors lost about Rs 15,000 crore and Rs

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Proposed Amendment to Indian E-Commerce Law To Include MLM

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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

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