Direct Selling Guidelines Tamil Nadu PDF is an important step by the government against illegal direct selling entities. In India, there are many direct selling companies running and selling products freely. But some of them are promoting illegal schemes to earn profits. So, Many states propose their own rules and penalties for such companies. Therefore Tamil Nadu Direct selling guidelines and rules will help to differentiate the illegal and ethical businesses from the market.
Tamil Nadu is not the only state to notify these direct selling guidelines more than 15 states issued their own set of rules. In addition to Tamil Nadu, 15+ other states include Karnataka, Punjab, Sikkim, Kerala, and other states.
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| Tamil Nadu direct selling guidelines pdf |
In this article, I will be sharing updated Tamil Nadu direct selling guidelines 2022 pdf from officials. Also, list down some key points from PDF and rules for direct selling entities and direct sellers.
Tamil Nadu Direct selling guidelines
As per the new rules, state governments will have to set up a mechanism to monitor or supervise the activities of direct sellers and direct selling entities.
It is very important to regulate and monitor the direct selling market because it is among the fastest-growing industry for a few decades. Millions of people are employed and earning money, especially women in Tamil Nadu.
In addition -
Direct selling is a relatively new business model in India that has generated self- employment opportunities for 5 million people out of which 60 percent are women as per a report from KPMG
Tamil Nadu Direct selling rules for companies
According to Guidelines PDF below are some important key points to note and follow for direct selling entities and direct sellers.
Some important points which should be done by Direct Selling Entities:
- It is mandatory for the businesses to have a complaint number for tracing and tracking the complaint and keep records of time taken for redressal of complaints received over the phone, email, website, post, and walk-in.
- Every Direct Selling entity shall maintain proper records either manual or electronic of their business dealings. The details of Direct Sellers shall include and not be limited to verified proof of address, proof of identity, and Permanent Account Number (PAN).
- It shall provide training or demonstration materials, catalogs, brochure, etc. to the direct sellers generally free or only at cost if at all.
- The entity shall not use or cause or permit to be used fraud, coercion, harassment, or unconscionable or unlawful means in promoting its direct selling practice including the remuneration system and agreement between itself and the direct seller.
- The companies shall maintain a proper book of records mentioning the details of the products, price, tax, and quantity.
- There will be no unfair recruitment practices by the display of misleading sales information or potential earnings of direct selling.
And many more rules and guidelines can be found in the official Direct Selling Guidelines Tamil Nadu PDF.
Prohibition of Pyramid Scheme and Money Circulation Scheme in Tamil Nadu
- No person or entity shall promote a Pyramid Scheme, as defined in rule 2(1)(k) or enroll any person in such scheme or participate in such arrangement in any manner whatsoever in the garb of doing direct selling business.
- No person or entity will participate in Money Circulation Scheme, as defined in rule 2 (1) (l) in the garb of direct selling of business opportunities.
Similarly, you can find the complete detail of the Direct selling rules in Tamil Nadu in the below PDF.
Direct selling guidelines Tamil Nadu PDF
Tamil Nadu's Direct selling guidelines are adopted by the government on 31 OCTOBER, 2018. These rules will apply to all goods and services bought or sold through direct selling. Also all models of direct selling, and all direct selling entities to consumers in India. These rules apply to those direct selling entities also that are not established in India but offer goods or services to consumers here.
Note: Below Tamil Nadu Direct selling Guidelines PDF is updated on 31th Oct 2018, as the government does not update its rules and guidelines every year. So, use the same PDF in the future until the new guidelines PDF will be shared with us.
Also read,
Andhra Pradesh Direct selling Guidelines PDF
Himachal Pradesh Direct Selling Guidelines PDF
Chhattisgarh Direct Selling Guidelines
For more information, you can refer above PDF and that’s it for this article.
In Conclusion of Direct Selling Guidelines and rules in Tamil Nadu PDF
I hope you like this article about Direct selling rules in Tamil Nadu PDF for direct selling entities, so please share it with everyone.
These PDF is legal and the latest by the government of Tamil Nadu. As the government doesn’t release or change guidelines every year. So, we can use it in the future until the new guidelines PDF will be shared with us.
Next: It is also important to understand about Why are Pyramid Scheme illegal and Difference between Multi-level marketing vs Pyramid schemes.