Consumer Protection (Direct Selling) Rules, 2021.

These Rules are framed by the central government pursuant to the powers conferred by the Consumer Protection Act, 2019 to prevent unfair trade practices in respect of goods and services traded through direct selling.
The Rules make it mandatory for every direct selling entity to maintain records such as incorporation certificate, tax related documents, audit reports and balance sheets, licenses and registrations under various laws including license issued under the Food Safety and Standards Authority of India Act, 2006 for the manufacture or sale of food items. The Rules lay down obligations on every direct entity such as lawful incorporation, physical office location, obtaining necessary licenses, tax registrations, maintaining websites with relevant information, storing personal data within India, establishing grievance redressal mechanism, avoiding false representations to consumers etc. Further, the duties of direct selling entity include making clear the offer terms along with payment terms and delivery time; avoiding misleading, deceptive or unfair trade practices; accepting return of spurious goods or deficient services and refunding the consideration paid. The Rules explicitly prohibit promoting Pyramid Scheme and money circulation scheme in the garb of doing direct selling business.