SME Times News Bureau | 25 Apr, 2018
Industry
body ASSOCHAM on
Tuesday urged the
centre for speedy implementation of Direct Selling Guidelines
notified by Union Government's Department of Consumer Affairs in
2016 to facilitate ease of doing business in this sector.
"The
Department of Consumer Affairs must advise all states for speedy
implementation of centre’s Direct Selling Guidelines in letter and
spirit as that would help in recognising the sector and removing all
misconceptions," said ASSOCHAM secretary general, Mr D.S. Rawat in
a communication addressed to Ram Vilas Paswan, Union Minister for
Consumer Affairs, Food and Public Distribution.
Direct
selling industry is often mistaken as pyramid and money circulation
schemes which is adversely affecting growth of industry. "At
grassroots level, complaints falling under the ambit of Consumer
Protection Act are being redressed under the harsh provisions of
criminal law or the Prize Chits and Money Circulation Schemes
(Banning) Act 1978."
ASSOCHAM
suggested the union government to refurbish status of direct sellers
and entrepreneurs by introducing necessary regulations and policy
reforms to facilitate growth of the $1 billion worth direct selling
industry which generates employment for about six million
entrepreneurs.
It
also highlighted that direct selling sector in India is facing
harassment by local authorities on a variety of issues, mostly
pertaining to wrong interpretation of subject matter thus there is a
need for framing a separate law for the industry.
Direct
selling sector is also facing credit related challenges as most banks
do not recognising direct selling business as an entrepreneurial
venture which leads to rejection of credit and loan sanction for the
industry.
Besides,
facilities of payment gateway are also not easily made available to
direct selling entities.