OREANDA-NEWS. The Government has set up an Inter Ministerial Committee for considering the requirement of separate legislation in respect of Direct Selling / Multi Level Marketing. This information was given by the Minister of State for Consumer Affairs, Food and Public Distribution, Shri Raosaheb Patil Danve in a written reply in Lok Sabha today.

Terms of Reference of the committee are as under:

·       To examine the nature and growth of Direct selling/MLM companies in the country over last 5 years.

·       To examine the factors/features that distinguishes the above models of business strategy from Pyramid, Money Circulation Schemes.

·       To examine whether or not standalone legislation is now required to regulate the above business models.

·       If so, the possible framework for such legislation based on the existing laws and regulations including that in other countries.

·       Identification of goods, services and operational issues to be covered under the new legislation.

·       The committee will be free to record evidence of other stakeholders such as IDSA, Consumer Groups etc.

·       Any other related issue.