• Carry their identity card and not visit the customer’s premises without prior appointment/approval.
• At the initiation of a sales representation, without request, truthfully and clearly identify themselves, the identity of direct selling entity, the nature of the goods or services sold, and the purpose of the solicitation to the prospective consumer.
• Offer a prospective consumer accurate and complete explanation and demonstrations of goods and services, including:
  • Prices
  • Credit terms
  • Terms of payment
  • Return policies
  • Terms of guarantee
  • After sales service
• Provide the following information to the prospect/consumers at the time of sale:
  • Name, address, registration number or enrollment number, identity proof, and telephone number of the direct seller and details of the direct selling entity.
  • A description of the goods or services to be supplied.
  • Explain the goods return policy of the company in detail before the transaction.
  • The order date, the total amount to be paid by the consumer along with the bill and receipt.
  • Time and place for inspection of the sample and delivery of goods.
  • Information about the consumer's rights to cancel the order and/or return the product in a saleable condition, i.e., any seal/protection on the goods is kept unbroken, and avail full refund and sum paid.
  • Detail regarding the complaint redressal mechanism.
• The Direct Seller shall keep a proper book of accounts stating the details in respect of the goods sold by him/her, in such form as per applicable law.

• Use misleading, deceptive, and/or unfair trade practices.
• Use misleading, false, deceptive, and/or unfair recruiting practices, including misrepresentation of actual or potential sales or earnings and advantages of direct selling to any prospective direct seller in their interaction with prospective direct sellers.
• Make any factual representation to prospective direct sellers that cannot be verified or make any promise that cannot be fulfilled.
• Present any advantages of direct selling to any prospective direct seller in a false and/or deceptive manner.
• Knowledgeably omit, engage in, or cause or permit to be made any representation relating to the direct selling operation, including the remuneration system and agreement between the direct selling entity and the direct seller, or the goods, that is misleading.
• Require or encourage direct sellers recruited by the first-mentioned direct seller to purchase goods and/or services in unreasonably large amounts.
• Provide any literature and/or training to a prospective and/or existing direct seller both within and outside the parent direct selling entity.
• Require prospective or existing direct sellers to purchase any literature or training material or sales demonstration equipment.

• Provide monetary and non-monetary sales benefits/incentives, including service tax/GST. The company shall not pay any service tax/GST to the Direct Seller. The Direct Seller shall be responsible for paying any service tax/GST (if any).
• The Direct Seller shall not create any cross-line in the sales network of the company.

• The company shall provide a mandatory orientation session to all prospective direct sellers, offering 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.
• The company shall maintain proper records, either manual or electronic, of their business dealings with complete details of their goods, services, terms of contract, price, income plan, and details of direct sellers, including but not limited to enrollment, termination, active status, earnings, etc.
• The company shall maintain a “register of direct sellers,” wherein relevant details of each enrolled direct seller shall be updated and maintained. The details of direct sellers shall include and not be limited to verified proof of address, proof of identity, and PAN.
• The company shall maintain a proper and updated website with all relevant details of the company, including contact information, management, products, product information, product quality certificates, price, complete income plan, terms of contract with direct sellers, and complaint redressal mechanisms for direct sellers and consumers.
• The company shall provide direct sellers with periodic account information concerning sales, purchases, details of earnings, commissions, bonuses, and other relevant data, in accordance with the agreement with direct sellers. All financial dues shall be paid, and any withholding made, in a commercially reasonable manner.
• The company shall monitor the value of the purchases of all its direct sellers/distributors on a monthly basis. Once the purchase value crosses the VAT threshold, the company shall notify the direct sellers/distributors to pay the VAT.
• The company shall not compel a participant/direct seller to purchase goods:
  • For an amount that exceeds what can be reasonably expected to be sold or resold to consumers.
  • For a quantity that exceeds what can be reasonably expected to be consumed by or sold or resold to consumers.
• The company shall not:
  • Use misleading, deceptive, or unfair recruiting practices, including misrepresentation of actual or potential sales or earnings in their interactions with prospective or existing direct sellers.
  • Make any factual representation to a prospective direct seller that cannot be verified or make any promise that cannot be fulfilled.
  • Present any advantages of direct selling to any prospective direct seller in a false or deceptive manner.
  • Make or permit any representation relating to its direct selling business, including the remuneration system and agreement between itself and the direct seller, or to the goods or services being sold, that is false or misleading.
  • Engage in, or permit, any conduct that is misleading or likely to mislead regarding material particulars related to its direct selling business, including the remuneration system and agreement between itself and the direct seller, or to the goods or services being sold.
  • Use, or permit the use of, fraud, coercion, harassment, or unconscionable or unlawful means in promoting its direct selling practice, including the remuneration system and agreement between itself and the direct seller, or the goods or services being sold.
  • Require its direct sellers to provide any benefit, including entry fees and renewal fees, or to purchase any sales demonstration equipment or material to participate in its direct selling operations.
  • Provide any benefit to any person for the introduction or recruitment of one or more persons as direct sellers.
  • Require direct sellers to pay any money by way of minimum monthly subscription or renewal charges.
• The company shall be responsible for compliance with these guidelines by any member of its network of direct selling, whether such member is appointed directly or indirectly by the Direct Selling Entity.

• The name of the purchaser and seller.
• The delivery date of goods or services.
• Procedures for returning the goods.
• Warranty of goods and exchange/replacement of goods in case of defect.

Provided that no Direct seller shall, in pursuance of a sale, make any claim that is not consistent with claims authorized by the Direct seller entity.