business-india-news

DS/MLM: FDCI files petition

Kolkata, Dec 19 : The Forum for Direct-Selling-Companies and Consumers of India (FDCI), first industry body to have representations from amongst all the stakeholders in the Direct Selling/ Multi-Level Marketing (DS/MLM) Industry has petitioned the President of India and the Central Government to usher a clear legislative framework for the Rs 20,000-crore DS/MLM industry which offers full/part-time income opportunity to over 7 crore Indians today in the country.


A legislative framework will safeguard the interests of genuine organizations and also help distinguish them from fraudulent ponzi and pyramid schemes that operate under the garb of DS/MLM companies.

In a petition addressed to President Pranab Mukherjee, Prime Minister Manmohan Singh, Home Minister Sushilkumar Shinde and Finance Minister P. Chidambaram, the FDCI has also urged immediate intervention to protect genuine DS/MLM companies from the mischief of 'Prize Chits and Money Circulation Schemes (Banning) Act 1978 (PCMCS)' by excluding from its purview genuine companies that have been operational in the country for over 10 years now.

Despite various initiatives to amend the said Act and remove from its purview genuine product-sales based DS/MLM companies, the said Act continues to bring under its mischief genuine DS/MLM companies and authorities, in the absence of a clear legislation are unable to distinguish genuine companies from fraudulent ones and many times end-up harassing genuine companies and their representatives.

P A Joseph, General Secretary FDCI, said, "The Indian Direct-Selling Industry needs legislation today more than it ever did before. There are more fraudulent ponzi schemes operating today in the garb of DS/MLM and in the lack of clarity at legislative level, it is only getting tougher for genuine companies to differentiate themselves.

"The last two years have seen a steady dip in the overall industry performance, which has otherwise grown consistently in India and we believe this is principally because of the ambiguity that shrouds the industry currently. Amway CEO was recently arrested in Kerala and QNET faces probe in Maharashtra.

"RCM survived a nearly fatal probe in Rajasthan with similar stories for other DS/MLM in various states."

--IBNS (Posted on 19-12-2013)

business-india-news headlines

PepsiCo launches free talk time offer

TCS, Twitter launch app to track Indian Elections

India's software market grew at 10pc in 2013: Research

Anand Mahindra, Banmali Agrawala, Ellen Lord named USIBC directors

Sigvaris appoints NovoMed as distributor in India

AGP launches talent division

Hotel Sahara Star honoured with award

eBay, CAIT partner to benefit Indian traders

Wipro ups IT revenue forecast for first quarter

Germany's SCHOTT cleared of anti-competition charges

Wipro net up 41 percent in Q4

Sensex up 352 points; IT, bank stocks gain

Quick Links: Goa | Munnar | Pondicherry | Free Yearly Horoscope '2014

Comments

Your e-mail:


Your Full Name:


Type verification image:
verification image, type it in the box

Message:

Back to Top