Blitz Bureau
NEW DELHI: The Central Consumer Protection Authority (CCPA), under the Department of Consumer Affairs, on December 13 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. “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.
