States should immediately implement direct selling rules: QNet

Malaysia-based QNet has called for expeditious implementation by various states in India of the direct selling guidelines issued by the central government to "clear the blurred lines" between genuine and fraudulent players in this sector.

QNet, a global direct selling major that has been battling regulatory issues in India, said the biggest challenge faced by the industry for the last 10-15 years has been the lack of a clear regulatory framework.

"Considering that India is the 20th largest direct selling market in the world, and one of only 23 countries that are billion dollar markets globally, it is about time the industry was regulated properly," QNet Global CEO Trevor Kuna said in a statement.

Kuna said the "need of the hour" is to formulate clear- cut laws to govern the direct selling industry in India which has been generating large scale self-employment and contributing well to the exchequer.

Recently, the Consumer Affairs Ministry listed the new direct selling guidelines among the measures taken by the Modi government in its first three years for improving 'ease of doing business' in the country.

"With the intention of facilitating 'Ease of doing business', guidelines for direct selling were issued after detailed deliberations by an Inter-Ministerial Committee.

"The guidelines are in the form of an Advisory to State Governments and provide transparency, ease to consumers and establishing a grievance redressal mechanism for consumers," it had said.

Kuna said the issuance of guidelines is "a good first step".

Stating that the direct selling companies bring about a huge employment proposition, he said the states should "expeditiously formulate a policy framework based on these guidelines to help clear the blurred lines between ethical industry players and fraudulent companies".