core sector communique

Inter Ministerial Committee to Consider the Issues Relating to Direct Selling and Multi- Level Marketing

Department of Consumer Affairs, Government of India has constituted Inter-Ministerial Committee to consider the issues relating to the companies engaged in Direct Selling/Network/Multilevel Marketing. The Committee will be headed by Shri Rajiv Agarwal, Secretary, Department of Consumer Affair. Representatives of Department of Finance Services, Department of Revenue, Ministry of Corporate Affairs and Reserve Bank of India will be its members. The Committee will consider following:- -Necessary for enactment of legislation to regulate the Director/Multi-Level Marketing companies; -Issue of guidelines for these companies on the lines of Kerala guidelines; -Including the definitions of the Director/Multilevel Marketing and Pyramid Scheme in the Prize, Chits and Money Circulation (Banning) Act, 1978 through an amendment, -Organizing an awareness campaign under ‘Jago Grahak Jago’ to protect the interest of the consumers in respect of such multi-level marketing schemes; -International best practices to protect consumers; -Suggesting legal action against the companies dealing with such multi-level marketing schemes, -Which should be the Department to deal with the matters relating to these marketing schemes; The committee shall submit its report by August 2012.