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  • What We Like and What We Don't Like in Direct Selling Guidelines 2016

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    vietnam gcoop
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    The document summarizes what is liked and disliked about the Direct Selling Guidelines 2016. What is liked includes provisions like a 30 day money back policy, free registration, and no minimum purchase requirements. What is disliked includes that the guidelines are too complex for a common person to understand, use ambiguous terms open to interpretation like "reasonable", and do not address potential loopholes in different direct selling business models. In conclusion, more clarity is needed in the guidelines.

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    Good-and-Bad-about-Direct-8816609

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    The document summarizes what is liked and disliked about the Direct Selling Guidelines 2016. What is liked includes provisions like a 30 day money back policy, free registration, and no minimum purchase requirements. What is disliked includes that the guidelines are too complex for a common person to understand, use ambiguous terms open to interpretation like "reasonable", and do not address potential loopholes in different direct selling business models. In conclusion, more clarity is needed in the guidelines.

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    13 views10 pages

    What We Like and What We Don't Like in Direct Selling Guidelines 2016

    Uploaded by

    vietnam gcoop
    The document summarizes what is liked and disliked about the Direct Selling Guidelines 2016. What is liked includes provisions like a 30 day money back policy, free registration, and no minimum purchase requirements. What is disliked includes that the guidelines are too complex for a common person to understand, use ambiguous terms open to interpretation like "reasonable", and do not address potential loopholes in different direct selling business models. In conclusion, more clarity is needed in the guidelines.

    Copyright:

    © All Rights Reserved
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    Flag for inappropriate content
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    of 10

    What we like and what we don't like

    in Direct Selling Guidelines 2016


    What We Like?
    1. 30 days’ money back policy.
    2. Free registration.
    3. No minimum purchase requirement.
    4. KYDS (Know your direct seller requirement).
    5. 90 days to comply.
    6. Explanation about People based and Pyramid Scheme prohibition.
    7. Company to provide information to existing direct sellers concerning
    remuneration, rights and obligations.
    8. Bill and receipt.
    9. Not provide literature/training material not approved by the company.
    10. Company being responsible for monitoring and compliance of practices.
    11. Complaint tracking mechanism.
    12. Grievance redressal committee – 3 official’s from the company
    13. The direct selling company to inform the consumer the procedure for
    returning the goods.
    14. Any person who sells or offers to sell on ecommerce platform must have
    consent of the company.
    What We don’t like ?
    1. Too complex to be understood by a common man.
    2. The word “reasonable” in the commercial terms (in case of 30 days
    money back policy).
    3. Different terms used for describing the same component.
    4. No Business Information Kit (with 30 days)made mandatory – which will
    encourage miscommunications and trouble for all (Customer, Direct
    Seller, Company and the Police), Higher chances of failures because of no
    information about the products, polices and the opportunity, Low
    retention rate, Unnecessary burden on company’s infrastructure, etc.
    5. With no minimum efforts requirements, no renewal fees, etc. will ensure
    product based pyramid structure where the person joined the earliest
    would continue to earn from the sales happening in his marketing
    organization. In other words, “Easy money”.
    6. KYDS proof requirement unclear.
    7. Infrastructure requirement – Offices in every state.
    8. States asked to set up/monitor activities.
    9. No rules against other 4 types of business models (only for direct selling
    and for the people based pyramid).
    10. Pay all dues and withholdings in a “Reasonable” manner – open to
    interpretation.
    11. No clarity on the word “registered” legal entity.
    12. Mandatory orientation for “Prospective” direct sellers – Unviable.
    13. Issue proper identity documents to direct sellers – open to interpretation.
    14. Indian contract Act 1872 – Loopholes for both parties to exploit.
    15. “Reasonable” – open to interpretation.
    16. “Satisfaction guarantee” and “Money back guarantee” not researched and
    used.
    17. Book of account to be maintained by direct seller.
    18. “Unreasonably” – open to interpretation.
    19. No explanation of “Unfair trade practice”.
    20. Name of the purchaser and the seller provided to the consumer upon
    purchase.
    21. Process, policies and contacts for monitoring not provided.
    22. Does not have a list of products/services not to be promoted.
    23. Does not have a list of Products to be promoted under specific conditions.
    24. Does not have clear and simple definitions/explanations of commonly
    used terms by 6 different types of models (which deploy the MLM
    compensation plans).
    25. No mention of VAT on MRP to be paid by the company.
    26. No mention of Service tax to be paid by direct sellers earning above INR
    10 lac above.
    27. Does not fill common loopholes exploited by 6 different types of business
    models.
    Conclusion
    Need to Read More Direct Selling Guidelines? Visit Here

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