On 21-6-2023, the Ministry of Consumer Affairs, Food and Public Distribution notified the Consumer Protection (Direct Selling) (Amendment) Rules, 2023 to amend the Consumer Protection (Direct Selling) Rules, 2021,
The definition of “network of sellers” has been inserted in Rule 3(1) which provides that:
“a network of direct sellers formed by a direct selling entity to sell goods or services for the purpose of receiving consideration solely from such sale”.
Accordingly, in Rule 3(1)(d) where a “direct selling entity” is defined, instead of principal entity selling or offering to sell goods/services through direct sellers, they will have to sell through a network of sellers.
