In a recent speech on the direct selling sector, Consumer Affairs Minister Rohit Kumar Singh conveyed a clear message: the government will support the sector as long as it complies with the ethical practice.
Singh emphasized that while the government recognizes the legitimacy of the economic model, any involvement in money circulation or Ponzi schemes will not be tolerated.
Rohit Kumar Singh’s comments come amid growing concerns and cases of direct selling companies being involved in illegal activities such as money circulation and Ponzi schemes.
Addressing these concerns, Singh emphasized the government’s commitment to ensuring transparency and accountability in the industry.
Key Points
- Support for Ethical Practices: Singh assured the direct selling industry that the government will stand by it as long as ethical practices are maintained. However, he cautioned that any involvement in dubious activities will prompt government intervention.
- Clarity in Business Model: Emphasizing the importance of perception, Singh urged the industry to enhance clarity in its business model. He underscored the need for transparent communication, especially regarding product subscription and sales procedures.
- Non-Interference in Business Model: Singh clarified that the government does not intend to interfere with the direct selling business model, which often involves multiple layers of product distribution. However, this freedom comes with the expectation of ethical conduct.
Direct Selling Industry Insights
Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT), highlighted the integral role of direct selling in the retail trade. With the current market size standing at Rs 50,000 crore, the industry aims to double its size this year. Khandelwal emphasized the importance of identifying and addressing any negative elements within the industry to ensure sustained growth and credibility.
Upcoming Events
CAIT announced plans to organize a conclave of women direct sellers in the national capital on March 8, coinciding with International Women’s Day. This event aims to celebrate the contributions of women in the direct selling sector and promote gender inclusivity within the industry.
Conclusion
As the direct selling industry continues to evolve and expand, maintaining integrity and transparency is paramount. The government’s stance on supporting ethical practices while cracking down on illicit activities sends a clear message to stakeholders. By fostering a culture of accountability and collaboration, the industry can thrive while safeguarding consumer interests and trust.
