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Date: 21-Jun-2023 Category: Extra Ordinary State: Union Government Country: India

Consumer Protection(Direct Selling)(Amendment) Rules, 2023

Issued by Ministry of Consumer Affairs, Food and Public Distribution · Department of Consumer Affairs

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Executive Summary & Key Takeaways

What it means

  • The gazette notification introduces the Consumer Protection (Direct Selling) (Amendment) Rules, 2023. These rules amend the Consumer Protection (Direct Selling) Rules, 2021.

Key Changes

  • The amendment replaces the words 'through direct sellers' with 'directly through a network of sellers' in clause (d) of sub-rule (1) of rule 3 of the Consumer Protection (Direct Selling) Rules, 2021.
  • A new clause (ga) is inserted after clause (g) in sub-rule (1) of rule 3, defining 'network of sellers' as 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.
  • The amendment rules came into force on the date of their publication in the Official Gazette, June 21, 2023.

Impact Analysis

Direct Selling Entities

  • Direct selling entities need to review their compensation structures to ensure that consideration is received solely from the sale of goods or services within the network of sellers.

Direct Sellers

  • Direct sellers need to understand the implications of receiving consideration solely from sales within the network.

Consumers

  • Consumers should benefit from a more transparent and accountable direct selling ecosystem.

Government

  • The Department of Consumer Affairs will be responsible for monitoring and enforcing the amended rules.

Action Items

  • Monitor the impact of the changes on sales, recruitment, and overall business performance.

Key Entities Referenced

Consumer Protection Act, 2019: The principal legislation under which the amendment rules are framed. Specifically, Section 94 and Section 101(2)(zg) are referenced. Consumer Protection (Direct Selling) Rules, 2021: The original rules that are being amended by this notification. These rules were initially published vide G.S.R. 889(E) dated 28th December, 2021. Central Government: The authority issuing the notification and responsible for enforcing the Consumer Protection Act, 2019 and its associated rules. Department of Consumer Affairs: The specific department within the Ministry of Consumer Affairs, Food and Public Distribution responsible for formulating and implementing consumer protection policies and regulations. Direct Selling Entity: An entity that engages in direct selling activities and forms a network of direct sellers. Direct Sellers: Individuals or entities that sell goods or services directly to consumers as part of a direct selling entity's network. Network of Sellers: 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.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-21062023-246732 xxxGIDHxxx CG-DL-E-21062023-246732 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 365] िई दिल्ली, िुधर्ार, ििू 21, 2023/ज्य ष्े ि 31, 1945 No. 365] NEW DELHI, WEDNESDAY, JUNE 21, 2023/JYAISHTHA 31, 1945 उपभोक्ता मामल,े खाद्य और सार्िव जिक जर्तरण मत्रं ालय (उपभोक्ता मामल ेजर्भाग) अजधसचू िा िई दिल्ली, 21 िूि, 2023 सा.का.जि. 454(अ).—केंद्रीय सरकार, उपभोक्ता संरक्षण अजधजियम, 2019 (2019 का 35) की धारा 94 के साथ पठित धारा 101 की उप-धारा (2) के खंड (यछ) द्वारा प्रित्त िजक्तयों का प्रयोग करते हुए, उपभोक्ता संरक्षण (प्रत्यक्ष जिक्री) जियम, 2021 का संिोधि करिे के जलए जिम्नजलजखत जियम ििाती ह,ै अथावत्:- 1. (1) इि जियमों का संजक्षप्त िाम उपभोक्ता संरक्षण (प्रत्यक्ष जिक्री) (संिोधि) जियम, 2023 ह।ै (2) ये रािपत्र में उिके प्रकािि की तारीख से प्रर्ृत्त होंगे। 2. उपभोक्ता संरक्षण (प्रत्यक्ष जिक्री) जियम, 2021 के, जियम 3 के, उप जियम (1) में - (i) खंड (घ) में िब्ि ‘सीधे जर्क्रेताओं के माध्यम स’े के स्ट्थाि पर िब्ि “सीधे जर्क्रेताओं के िेटर्कव के माध्यम स”े प्रजतस्ट्थाजपत दकया िाएगा; (ii) खंड (छ) के पश्चात, जिम्नजलजखत खंड अन्तःस्ट्थाजपत दकया िाएगा, अथावत्:- 3958 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] “(छक) “जर्क्रेताओं के िेटर्कव” से दकसी प्रत्यक्ष जिक्री इकाई द्वारा जिर्मवत प्रत्यक्ष जर्क्रेताओं का एक िेटर्कव अजभप्रेत है, िो माल या सेर्ाओं का जर्क्रय केर्ल ऐसे जर्क्रय से प्रजतफल प्राप्त करिे के प्रयोिि के जलए करता ह।ै ” [फा. सं. िे-10/9/2018-सीपीयू] अिुपम जमश्रा, संयुक् त सजचर् ठटप्पण: मूल जियम भारत के रािपत्र, असाधारण, भाग-II, खंड 3, उप-खंड (i), सा.का.जि. 889(अ), 28 दिसंिर, 2021 द्वारा प्रकाजित हुए थे। MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (Department of Consumer Affairs) NOTIFICATION New Delhi, the 21st June, 2023 G.S.R. 454(E).—In exercise of the powers conferred by clause (zg) of sub-section (2) of section 101 read with section 94 of the Consumer Protection Act, 2019 (35 of 2019), the Central Government hereby makes the following rules to amend the Consumer Protection (Direct Selling) Rules, 2021, namely:- 1. (1) These rules may be called the Consumer Protection (Direct Selling) (Amendment) Rules, 2023. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Consumer Protection (Direct Selling) Rules, 2021, in rule 3, in sub-rule(1),- (i) in clause (d), for the words “through direct sellers”, the words “directly through a network of sellers” shall be substituted; (ii) after clause(g), the following clause shall be inserted, namely :- ‘(ga) "network of sellers" means 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;’. [F.No. J-10/9/2018- CPU] ANUPAM MISHRA, Jt. Secy. Note: The Principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-Section (i) vide G.S.R.889(E) dated 28th December, 2021. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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