0io CMc Ce_ 2742 Oy: Nf CHANDIGARH ADMINISTRATION Daieq F8 ox3~ HOME DEPARTMENT 27/238 FOOD & SUPPLIES; CONSUMER AFFAIRS & LEGAL METROLOGY s

orders · 2019 · State unknown

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Parent: THE CONSUMER PROTECTION ACT, 2019 (2174bd67f1e95992eed3df2cdcb6cf194615ac0f)

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247 4 0io CMc Ce_ 2742 Oy: Nf CHANDIGARH ADMINISTRATION Daieq F8 ox3~ HOME DEPARTMENT 27/238 FOOD & SUPPLIES; CONSUMER AFFAIRS & LEGAL METROLOGY s {2CYUNOTIFICATION BRANCH 411 IcR Chandigarh, dated the Do apoo Iw No. 7/3/370(12336)-FSECA-2020/ _ 3843 With the prior concurrence of Government vide F.No. the Central 21/18/2014-IT(Vol-Il) dated 9" September; 2016, Aifairs, Ministry of Consumer Food & Public Distribution, Department of Consumer Affairs , Administrator, New Delhi, the Union Territory, Chandigarh is hereby pleased to make the following order; namely: Short title extent and commencement:- This order may be called the Chandigarh Direct Selling Guidelines order, 2020. (2) It extends to the whole territory of Chandigarh: (3) It shall come into force, on the date of its publication in the Official Gazette. Clause 1. Definitions: In these Guidelines unless and otherwise required: 1. "Act" means the Consumer Protection Act; 1986 (68 of 1986); 2 "Consumer" shall have the same meaning as provided under the Consumer Protection Act; 1986; 3. "Prospect" means a person to whom an offer or a proposal is made by the Direct Seller to join a Direct Selling opportunity; 4 "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. 5. "Network of Direct Selling" means a network of direct sellers at different levels of distribution; who may recruit or introduce or sponsor further levels of direct sellers, who they then support: Explanation: "network of direct selling" shall mean any system of distribution or marketing adopted by a direct selling entity to undertake direct selling business and shall include the multi-le

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12 · "Money Circulation Scheme' has the same meaning as defined under the Prize Chits and Money Circulation Schemes (Banning) Act; 1978. 13. "Remuneration System' means the system followed by the direct selling entity to compensate the direct seller which illustrates the mode of sharing of incentives, profits and commission, including financial and non-financial benefits, paid by the direct selling entity to the direct sellers, on a monthly or periodic or yearly basis or both, as the case may be This system, for every Direct Selling entity, shall: a) Have no provision that a direct seller will receive remuneration from the recruitment to participate in such direct selling; b) ensure that direct sellers shall receive remuneration derived from the sale of goods or services; c) clearly disclose the method of calculation of remuneration: 14. "State" includes a Union territory Chandigarh:

1 · be a registered legal entity under the laws of India. 2 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

5 · Notify and provide a full refund or buy-back guarantee to every direct seller on reasonable commercial terms which can be exercised within a period of 30 days, from the date of the distribution of the goods or services to the direct seller; 6 Notify and provide to every direct seller a cooling-off period which entitles such direct seller to return any goods Iservices purchased by the direct seller during the cooling-off period; 7 _ The promoter or key management personnel should not have been convicted of any criminal offence punishable with imprisonment in last 5 years by any Court of competent jurisdiction; 8. 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;

8 · 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.

1 · Direct Seller engaged in direct selling should carry their identity card and not visit the customer's premises without prior appointmentlapproval; 2 At the initiation of a sales representation, without request; truthfully and clearly identify themselves, the identity of the direct selling entity, the nature of the goods or services

1 · 1The relationship between Direct Selling entity and Direct Seller shall be determined as per the written agreement between the parties which shall contain the rights and obligations that are expressly provided as conditions for the conduct of Direct Selling business as well as provide for the obligation of the direct selling entity ad the direct seller in terms of these guidelines; 1.2 All other rights and obligations shall be determined as per the express terms of written agreement between a Direct Selling entity and Direct Seller; 2 The Direct Selling entity will be liable for grievances arising out of sale of products, services or business opportunity by its Direct Sellers; 3 It will be the responsibility of the Direct Selling entity to monitor and control the practiceslmethods adopted by the Direct Sellers;

1 · Direct Sellers and Direct Selling Entity shall take appropriate steps to ensure the protection of all private information provided by a consumer; 2 Direct Sellers and Direct Selling Entity shall be guided by the provision of the Consumer Protection Act 1986; 3 AlI complaints received over phone, email, website, post and walk-in should have a complaint number for tracing and tracking the complaint and record time taken for redressal; 4 Every Direct Selling company shall constitute a Grievance Redressal Committee whose composition, nature of responsibilities shall include but not limited to: a) The Grievance Redressal Committee shall consist of at least three officers of the Direct Selling entity; b) The Grievance Redressal Committee shall address complaints and inform complainants of any action taken; c) Complaints may be made by any member of the general public against a Direct Seller of the company, an employee or any other officer of the entity; d) AlI such grievances will be resolved directly by the Direct Selling Entity;