For Immediate Dissemination
IDSA Stipulates Government for Clear Policy Framework for Direct Selling Industry in India
Request to Government for Immediate Operational Clarity
New Delhi, 31st May 2013:
In an attempt to clear-out the clouds about the operational ambiguities
for Direct Selling Industry in India, the member companies of the
Indian Direct Selling Industry have come together and are demanding the
Government for a clear policy framework while recommending the
following:
1. Immediate Operational Clarity for the Industry
2. Exclusion from PCMC Act
3. Separate Legislation
The
conference was organized by Indian Direct Selling Association (IDSA) in
New Delhi today, as all the Industry pledges to stand together against
the continued harassment because of the collapse happening often between
fraudulent financial pyramid schemes and Direct Selling companies. The
arrest of Amway India CEO and Directors in Kerala amidst unclear reasons
has not only dazed the Industry but also risked the future of lakhs of
independent sales consultants i.e. Direct seller working in the Direct
Selling Industry in India.
Addressing
the media, the companies addressed on the pressing issue of unclear and
incomplete policy framework that has been affecting the Direct Selling
Industry in India for almost a decade.
Ms. Chavi Hemanth, Secretary General of IDSA said,
“The focus of regulation should be to identify which practices are
fraudulent and it should lay down certain specifications for the
protection of consumers, distributors as well as Direct Selling entity.
The government needs to create a conducive environment for the efficient
operation of genuine Direct Selling companies and ensure that the
consumers are not cheated by the fraudulent players. There is no clear
and holistic definition of Direct Selling in India and as a result, the
classification of Direct Selling is also not clear.”
Ms. Chavi Hemanth
also added that “We should not just focus on the Direct Selling sector
as alone, but such kind of incidents will also threaten and jeopardize
the investment from overseas. Recently from our Industry only, one of
our member company has shut their business owing to the lack of clarity
over the regulatory aspects. Further, when such unwarranted act of
detention of top officials of a company who are generating a revenue of
INR 2288 Crore will happen, it will surely give a wrong epistle to the
global companies in India and will affect the investment floating into
India.”
Emphasizing on Direct Selling Companies who are operating globally, Ms. Chavi Hemanth said,
“Global experiences shows that Direct Selling Industry vary across
countries. However, there are some global best practices, which can be
taken into consideration while designing a regulation for Direct Selling
in India. Malaysia is one of the few countries, which have a
comprehensive Act relating to the Direct Selling sector-Direct Sales
Act, 1993. Under which, all door-to door sales and mail order Selling in
Malaysia is subject to this Act. Though, IDSA is working on these
regulations but it is highly imperative to provide a legal framework to
regulate Direct Selling Industry and to prevent unscrupulous elements
operating in the guise of Direct Selling business and for protection of
interest of public at large.”
Amarnath Sengupta, Chairman IDSA
said, “IDSA have been continuously advocating with the Government of
India since last many years and we as an Industry body association would
want to emphasize on separate regulation that should govern this
Industry. Due to the fact that there is no definition in the statutory
books of India on the business of Direct Selling, many fly-by-night
operators are mis-using the concept. Therefore, there can be provisions
for licensing and registration of Direct Selling companies which help to
identify legitimate companies and thereby secure their interest. Hence
it is extremely important to define a distinction between Direct Selling
Companies and fraudulent financial pyramid schemes which operate under
the garb of Direct Selling companies. The policy framework should have
comprehensive approach.”
Dr. S P Sharma, Chief Economist & Head of Research, PHD Chamber of Commerce and Industry,
“The Indian Direct Selling Industry has scaled remarkable growth over
the years and has been expanding its horizons in India as a rapidly
emerging alternate distribution channel. However, with increasing
importance of Direct Selling Industries in India, the Industry has been
victimized by frequent fraudulent activities that have impacted the
goodwill of Direct Selling businesses. I believe there should be
centralized legislation across India that will enable Direct Selling
Industry to operate smoothly for the conduct of their businesses.
The
CEO’s of member companies of IDSA came together as the Industry has
stand together to look forward for a favorable response. They stated
that the government needs to have an appropriate regulation in place
that lays down conditions for identification of a legitimate Direct
Selling company. The policy framework should have comprehensive
approach.
About IDSA:
Incorporated in 1996 and headquartered in Delhi, IDSA strives to create
an environment conducive to the growth of Direct Selling Industry in
India, partnering Industry and government alike through advisory and
consultative activities. IDSA is affiliated to World Federation of
Direct Selling Association established in 1978, which has 59 Direct
Selling Associations across the world as its members. WFDSA is a
non-government voluntary organization, representing Direct Selling
Industry globally as a federation worldwide. It is reported that
worldwide retail sales by its members is US $ 153,727 million through
the activities of more than 91,533,825 independent sales persons.
To boast
of our list of members, we have leading Indian and international
organizations engaged in the business of Direct Selling in India.
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· Altos Enterprises Ltd, Ludhiana, www.altosindia.net
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· AMC Cookware (India) Pvt. Ltd, Bangalore, www.amc.info
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· Amway India Enterprises Pvt. Ltd, Noida, www.amway.com
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· Avon Beauty Products India Pvt. Ltd, Gurgaon, www.avonindia.in
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· CNI Enterprises (India) Pvt. Ltd, Bangalore, www.cni-india.com
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· Elken International India Pvt. Ltd, Bangalore www.elken.com.my
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· Herbalife International India Pvt .Ltd, Bangalore, www.herbalife.com
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· Hindustan Unilever Network, Mumbai, www.huln.co.in
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· K-Link Healthcare (India) Pvt. Ltd,Chennai, www.klinkindia.in
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· Max Life Insurance Co. Ltd, Gurgaon, www.maxlifeinsurance.com
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· Oriflame India Pvt. Ltd, Delhi www.oriflame.co.in
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· Tupperware India Pvt. Ltd, Gurgaon www.tupperwareindia.com
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· Tianjin Tianshi India Pvt. Ltd , Chennai www.tianshiindia.co.in
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For further information please contact:
Neeraj Shorya, neeraj@impactpr.in, 9310333595
Parul Kohli, parul@impactpr.in, 8860334379
Sujoy Choudhary, sujoy@impactpr.in, 9310333597
Impact Public Relations Pvt. Ltd.
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