CCPA issues notices to 17 entities for violating direct selling rules
New Delhi (The Uttam Hindu): The Central Consumer Protection Authority (CCPA), under the Department of Consumer Affairs, on Friday issued notice to 17 entities that were found violating Consumer Protection (Direct Selling) Rules, 2021. Of these, 13 entities are currently under investigation and reply from three of the entities is awaited, informed the consumer watchdog.
Some of the entities are Vihaan Direct Selling (India) Pvt. Ltd. (a sub-franchise of QNet Group, Hong Kong), Triptales Pvt. Ltd, Oriens Global Marketing Pvt. Ltd, Zennesa Wellness Pvt. Ltd, Orgolife Solutions Pvt. Ltd, Oriflame India Pvt. Ltd and Juncture Marketing Pvt. Ltd, among others. “The action aims to address concerns about deceptive and exploitative practices in the direct selling industry and ensure adherence to the regulatory framework designed to safeguard consumer interests,” said the CCPA.
Some fraudulent entities misuse the direct selling model to promote illegal pyramid or money circulation schemes. “These entities often make unrealistic promises of high commissions, foreign trips, entrepreurship, high returns and wealthy future, contingent on recruiting others, which violates consumer trust and established laws, thereby exposing consumers to fraudulent pyramid and money circulation schemes,” according to the CCPA.
The nation’s consumer watchdog has intensified its focus on regulating direct selling activities and ensuring compliance with relevant legal framework. The government notified the Consumer Protection (Direct Selling) Rules, 2021, establishing a comprehensive framework to regulate direct selling entities and protect consumer interests. These rules aim to promote transparency, accountability, and ethical practices within the direct selling industry, enabling consumers to make informed decisions.
The Department urged all direct selling entities to adhere strictly to the regulatory framework and prioritize consumer welfare in their operations. “Consumers are advised to stay vigilant and report any suspected illegal activities or violations related to direct selling to the appropriate authorities,” said the CCPA.
