【New Delhi】The Government is working on a clear definition for multi-layer marketing and direct selling in the foreign direct investment (FDI) policy to remove ambiguities on the legal status of foreign companies operating in the sector.
This follows representations from global direct sellers, such as Amway, Oriflame and Tupperware, as members of the Indian Direct Selling Association (IDSA) seeking clarity on the FDI policy governing their operations.
Since the FDI policy is silent on multi-layered marketing and direct selling, such companies run the risk of being clubbed with fraudulent ponzi and pyramid schemes and getting penalised under the Prize Chit and Money Circulation Act, 1978. Last year, top officials of Amway India were arrested under the Act in Kerala.
【News source】
FDI: Govt to clearly define direct sellers
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