Meghalaya Government notifies the Meghalaya State Direct Selling Guidelines, 2019

Feb 14, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The State Government of Meghalaya on December 17, 2019 notifies the Meghalaya State Direct Selling Guidelines, 2019 and it will extend to the whole of Meghalaya.

Direct selling means marketing, distribution and sale of goods or providing of services as a part of network of Direct Selling other than under a pyramid Scheme: Provided that such sale of goods or services occurs otherwise than through a “Permanent Retail Location” to the consumers, generally in their houses or at their workplace or through explanation and demonstration of such goods and services at a particular place.

Pyramid Scheme means a multi layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, as a result of enrolment, action or performance of additional subscribers to the scheme. The subscribers enrolling further subscriber(s) occupy higher position and the enrolled subscriber(s) lower position, thus, with successive enrolments, they form multi-layered network of subscribers.

Ø  These Guidelines includes the conditions:

                           i.            for setting up of Direct Selling Business;

                         ii.            for conduct of Direct Selling Business;

                       iii.            for Direct Selling Contract between Direct Seller / Distributor and Direct Selling Entity

Ø  Direct Seller engaged in direct selling should carry their identity card and not visit the Customer’s premises without prior appointment or approval.

Ø  The relationship between Direct Selling entity and Direct Seller will be determined as per the written agreement between the parties which shall contain the rights and obligations that are expressly provided as conditions for the conduct of Direct Selling business as well as provide for the obligation of the Direct Selling entity and the Direct Seller in terms of these Guidelines.

Ø  Direct Sellers and Direct Selling Entity shall take appropriate steps to ensure the protection of all private information provided by a Consumer.

They will come into force on the date of their publication in the Official Gazette (January 16, 2020).

[Notification No. SUP.25/2015/171]


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