Indian Trade Body Asks For Separate Direct Selling Laws

India MLM legislation


Indian traders body CAIT has asked the government to formulate a separate law to regulate and monitor direct selling business in the country. 

The direct selling business in India is a source of self-employment and it should be regarded as a vertical of retail trade like e-commerce, Confederation of All India Traders (CAIT) said in a statement today. 

In an inter-ministerial meeting convened by Ministry of Consumer Affairs recently, CAIT has sought specified legislation to regulate direct selling business in India, it said. 

The direct sellers should be given facilitation to set up manufacturing plants, it said, adding the 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 business is promoting women empowerment, it added. 

According to a KPMG report, the industry will touch a turnover of Rs 64,500 crore by 2025, it said. 

Further, CAIT said that the legislation for direct selling industry should include safeguards to protect interest of consumers. 

The Indian direct selling industry generated total sales of $1.2 billion in 2014. The industry's sales are expected to reach $3.9 billion by 2020.

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