TS Direct Selling New Guidelines 2017
TS Direct Selling New Guidelines 2017 Telangana State Govt released new guidelines on direct selling in Telangana State vide G.O. M.S No 29, Dated 01.12.2017 of the Telangana Govt. This guidelines implement immediately effect to all telangana districts
TS Direct Selling New Guidelines 2017
“Direct Seller” means a person appointed or authorized, directly or indirectly, by a Direct Selling Entity through a legally enforceable written contract to undertake direct selling business on principal to principal basis.” How shall digital and e-contracts be treated?
Answer: The ‘written contract’ includes e-contracts or digital contracts and the same shall be governed as per the provisions of the Information Technology Act , 2000.P
Clause 1.6 (Proviso)
“Provided that such sale of goods or services occurs otherwise than through a “permanent retail location” to the consumers, generally in their houses or at their workplace or through explanation and
demonstration of such goods and services at a particular place”. Does this Proviso mean that every sale needs to take place away from permanent retail location only?
Answer: Clause 1.6 does not restrict / preclude sales made from permanent retail location. However, direct selling entity will be governed by these guidelines.
“Provide a mandatory orientation session to all prospective direct sellers providing fair and accurate information on all aspects of the direct selling operation, including but not limited to the remuneration system and expected remuneration for newly recruited direct sellers’’. Whether the
training/orientation provided by the Direct Seller to other prospective Direct Sellers would be in compliance to this clause?
Answer: Yes, the training / orientation will be provided by the Direct Selling Entity or by a Direct Seller or by any authorized representative of Direct Selling Entity, either in person or through any digital means.
“Notwithstanding the distribution system adopted by a direct selling entity, the Direct Selling Entity shall be responsible for compliance of these Guidelines by any member of its network of direct selling, whether such member is appointed directly or indirectly by the Direct Selling Entity”. How will a Direct Selling Entity ensure compliance of these Guidelines by Direct Sellers?
Answer: To comply to this clause, Direct Selling Entity shall sign an addendum to the current contracts with the existing Direct Sellers. For the Direct Sellers to be appointed herein-after, this clause shall be added in the contract signed by both the parties. The Direct Selling Entity should ensure that it contractually binds its Direct Sellers to comply with these Guidelines and take disciplinary action against reported noncompliance.
“It shall have an office with identified jurisdiction of its operation in the State to enable the consumers and direct seller to acquaint themselves with price of products, return or replacement of products and efficient delivery of goods and services, and post-sale redressal of grievances” Whether an office in one State can be designated as focal point for jurisdiction of two or more states?
Answer: An office in one particular State can be designated having jurisdiction over two or more states, subject to the accessibility of the consumers, where Direct Sellers/consumers can interact with the Direct Selling Entity / Authorized representative of Direct Selling Entity.
“It will be the responsibility of the Direct Selling entity to monitor and control the practices/methods adopted by the Direct Sellers”. Does this mean that only the direct selling entity will be liable for all grievances arising out of sale of products and services or business opportunity by the direct seller?
Answer. It is clarified that the Direct Selling Entity will be responsible for the quality of products and services and it will guide and help the Direct Seller to follow best practices in the interest of consumers. The scope and specific liabilities of the Direct Seller in such cases will be defined in unambiguous terms in the contract signed. By way of providing in the contract, every Direct Selling Entity shall define and develop some mechanism to monitor the practices being adopted by its Direct Sellers.
