The Consumer Protection (Direct Selling) Rules, 2021
The Central Government made the Consumer Protection (Direct Selling) Rules, 2021, and the Tamil Nadu Co-operation, Food and Consumer Protection Department republished them through G.O. Ms. No. 71, Co-operation, Food and Consumer Protection (H1), dated 27th June 2022. The rules regulate direct selling to consumers in India, including seller verification, disclosures, records, complaints, refunds, personal data and unfair trade practices, and do not govern land ownership or property records.
What the notification does
The Consumer Protection (Direct Selling) Rules, 2021 were made by the Central Government and republished in Tamil Nadu by the Co-operation, Food and Consumer Protection Department through G.O. Ms. No. 71, Co-operation, Food and Consumer Protection (H1), dated 27th June 2022. They apply to goods and services sold through direct selling, all direct selling models, unfair trade practices, and entities offering goods or services to consumers in India, including entities not established in India.
The rules came into force on publication in the Official Gazette. Existing direct selling entities were given ninety days from publication to comply.
Who is affected
The Consumer Protection (Direct Selling) Rules, 2021 affect direct selling entities, their authorised direct sellers, prospective participants and consumers. A direct selling entity does not include an entity engaged in a pyramid scheme or money circulation scheme.
For a Tamil Nadu property buyer or owner, the notification does not set land rights, registration requirements or property charges. It is relevant when a person buys goods or services through direct selling, operates a direct selling entity or works as an authorised direct seller.
Main requirements for direct selling entities
Direct selling entities must:
- Have a registered office at a physical location in India and obtain applicable registrations and licences.
- Keep corporate, tax, financial, licensing and direct seller records at the registered office, manually or electronically.
- Make a self-declaration that they comply with the rules and are not involved in a pyramid scheme or money circulation scheme.
- Use prior written contracts with direct sellers, verify their identities and physical addresses, and issue identity documents only after verification.
- Maintain an updated website showing business details, products, prices, management, contact information and complaint procedures.
- Display the total price in one figure, with compulsory and voluntary charges, delivery costs and applicable tax broken down.
- Give clear information about returns, refunds, exchanges, warranties, delivery, payment methods and complaint handling.
- Store sensitive personal data within India and protect it from unauthorised access or misuse.
Consumer complaints and conduct
The Consumer Protection (Direct Selling) Rules, 2021 require an adequate complaint mechanism and designated grievance officers. Complaints must be acknowledged within forty-eight working hours and normally resolved within one month. Entities must not use unfair trade practices, misleading advertisements, mis-selling, false consumer reviews or misrepresentation of product quality or features.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Do these rules change my land title or property registration?
No. The Consumer Protection (Direct Selling) Rules, 2021 regulate goods and services offered through direct selling and do not contain provisions on land title or property registration.
Do the rules apply to a direct selling company based outside India?
Yes. They apply when an entity not established in India offers goods or services to consumers in India.
How quickly must a direct selling company respond to my complaint?
Its grievance officer must acknowledge the complaint within forty-eight working hours and normally resolve it within one month. If resolution takes longer than a month, the complainant must be told the reasons and actions taken in writing.
Can I ask for details of the direct seller who sold me a product?
Yes. After a purchase, a consumer may make a written request for the direct seller's name, address, email, contact number and other information needed for effective dispute resolution.
