Inter-Ministerial Committee on Multi Level Marketing

By admin - Wed Dec 19, 8:19 am

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The Government had constituted an Inter-Ministerial Committee to consider the issues relating to the companies engaged in Direct Selling/ Network/Multi-level Marketing in the country;  This was stated by the Minister of State (IC) for Consumer Affairs, Food & Public Distribution Prof. K.V.Thomas in a written reply in the Lok Sabha .

He said that with the liberalization of economy in India, numerous International and Domestic companies have been working and selling their products in the Indian consumer Market by using Direct Selling/Network Marketing/Multi Level Marketing(MLM) chain method. However, to look into the operational issues being faced by these companies an Inter-Ministerial Committee was constituted with the following terms of reference:-

            Terms of Reference

To Consider

(i)         necessity for enactment of a legislation to regulate the Director/Multi-Level Marketing companies; or

(ii)        issue of guidelines for these companies on the lines of Kerala guidelines; or

(iii)       including the definitions of the Director/Multi-Level Marketing and Pyramid Scheme in the Prize, Chits and Money Circulation (Banning) Act, 1978 through and amendment;

(iv)       organizing an awareness campaign under ‘Jago Grahak Jago’ to protect the interest of the consumer in respect of such Multi-Level Marketing Schemes;

(v)        international best practices to protect consumers;

(vi)       suggesting legal action against the companies dealing with such Multi-Level Marketing Schemes;

(vii)      which should be the Department to deal with the matters relating to these Marketing Schemes;

(viii)     any other matter with the permission of the Chairman.

 

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