If you have been paying attention to the business section of your newspaper, you might have seen a headline reading, “Govt draft norms ban direct selling cos from offering pyramid, money circulation scheme”. And you might have thought to yourself about what it means to direct selling and QNET in particular. Here is all that you have to know about the new norms that the government has proposed.
What is the new Government norm?
First and foremost, this is just a draft and not yet set in stone. In an effort to combat the issues that surround the direct selling network marketing business, the government of India has proposed some new changes and policies that are aimed at keeping the customer’s safe and the companies accountable.
The new proposal suggests all direct selling companies in India have to register themselves under relevant laws and under the Department of Promotion of Industry and Internal Trade, or DPIIT, and obtain a registration number. They also have to have at least one physical location as a registered office in India.
Direct selling companies are also prohibited from offering pyramid and money circulation schemes to their customer. I have already talked about what makes a pyramid scheme and the tell-tale signs of one.
The draft also reveals the government will require direct selling companies to have chief compliance officers, grievance redressal officers as well as nodal contact officers for coordination with law enforcement officials. The companies should also maintain an updated website that provides all the details of the company, products and contact information.
The company should also provide proper identity cards to its representatives after a full KYC verification process. They are also required to maintain a record of direct sellers who have repeatedly sold spurious or damaged products to their customers. The draft has also proposed that direct sellers should only visit their customer’s premises with proper identification and after making a prior appointment.
That’s not all that the new draft proposes. It also says that direct sellers should not provide any literature or sales material that has not been approved by the parent company. It also states that a direct seller should have written consent from the company before selling their products through e-commerce platforms. It also rules that people with prior convictions or who are bankrupt should not engage in the business.
What does this mean to QNET and the direct selling industry?
Believe it or not, this is a positive turn of events. QNET has always pushed for reforms and changes in the industry to make it transparent and trustworthy for many years now. These new rules are not meant to hurt the direct selling business but to make it more customer-friendly and transparent. And QNET has always welcomed changes like that.
QNET has a company that has always taken steps to keep its customers at the centre of the operation and to make everything better for them. They have rules against misinterpretations of their products and business model, have strict codes of conduct and rules that every QNET IR has to follow as well as a proper refund policy. I have already talked in detail about what makes QNET different from a pyramid scheme more than a few times. All this makes QNET one of the top direct selling companies in India.
Personally, I think these new regulations and rules can be a great thing for the industry if implemented. It will go a long way in legitimising the business and helping it regain the trust in the public’s eye. It will also help weed out malicious players from the industry who has given it a bad reputation.
That’s my two cents about it. If you want to add something or feel that I missed out on any points, feel free to add it to the comments below. Also, share this with your friends and loved ones to spread the word.
Read More: 5 Reasons to get into Direct Selling