Maharashtra’s New Dawn: Direct Selling Firms to Face Stringent Monitoring and Rules

The Maharashtra government has taken a decisive step to address growing consumer complaints related to direct-selling companies and their distributors by constituting a five-member committee tasked with framing monitoring rules and guidelines. This committee, formed under the Food, Civil Supplies and Consumer Protection Department, seeks to tackle issues arising from the absence of a regulatory framework governing direct-selling operations in the state.

Direct selling, involving companies selling products directly through independent distributors bypassing traditional retail channels, has seen a significant surge in Maharashtra without oversight, leading to consumer concerns about misleading claims and unregulated business practices.

The committee will study existing regulations and best practices from other states to draft suitable rules tailored for Maharashtra’s direct-selling ecosystem. Key members include officials from the Food Department, Legal Metrology, and the Indian Direct Selling Association, chaired by the Department’s Under Secretary.

Once the committee submits its recommendations, the state government will formulate comprehensive regulations to safeguard consumer interests, ensure transparency, and regulate sales agents’ conduct, aiming to restore trust and accountability in this burgeoning market.

Key Highlights:

Maharashtra forms a five-member committee to draft rules for direct-selling firms.

Increasing consumer complaints highlight lack of existing oversight.

Committee to study models from other states before recommending rules.

Direct selling firms operate through independent distributors, bypassing retail.

Goals include consumer protection, transparency, and business oversight.

Regulation expected to address misleading claims and unethical practices.

Committee comprises Food Department, Legal Metrology, and Industry representatives.

Recommendations will inform government’s new regulatory framework.

Sources: The Print, Hindustan Times, IANS, Social News XYZ