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With an object to look into the activities of all direct selling/direct marketing /Network Marketing companies in India and to guide them in establishing legalized and ethical business practices (the study of policies and practices of business regarding potentially controversial issues), FDSA came into force as a voluntary social organization. The association is able to assemble good support from several Direct marketing Companies PAN India. For all the member companies of FDSA, it has become imminent to have a uniform code of conduct, ethical business practices and guidelines.
The objective-the only motive of FDSA is to improvise time to time as per the guidelines of Govt. of India and industry experts to maintain a uniform code of conduct among all member companies with transparency in their business and to help
FDSA Guidelines- FDSA has issued guidelines that are in the best interest of the direct selling/ Network Marketing by which the company/Distributor/consumer will not face any losses.
What are permissible Direct Selling and its Conditions-Below mentioned conditions should comply with permissible Direct selling-
Also, Read: Sample of Partnership Deed Format in India.
*(Those who do not have such specific clauses within 2 months from the date of publication of these Guidelines) should get their memorandum of Association or Partnership Deed be amended within 2 months from the date of publication of these Guidelines)
Appointment and Authorizations-After scrutinizing the application of the intending person Direct Selling Entity shall enter into an agreement for appointment in a prescribed format with necessary supporting documents i.e.
The appointment should be executed between the Direct selling entity and distributor/direct seller.
Applicants should attain the age of majority under the Indian Contract Act at the time of entering into the agreement.
A direct seller shall be allotted Unique Identification Numbers and photo identity card upon granting the license to start a direct selling
Prohibitions- It shall not-
General conditions- Under the weights and measurements Act, packages of the goods sold by the direct selling Entity should display like-
Rewarding Plan- Rewarding system is also termed as a business model in FDSA-As there is no specific frame to control the model of Rewarding plans but it is mandatory to follow the below-mentioned points-
General Business Ethics / Code of conduct: Every Direct Selling Company should specify general business ethics/code of conduct applicable for every distributor.
The Entity should maintain a register with the relevant documents that include:
Grievance Redressal Mechanism: Every Direct Selling Company must have a complaint redressal mechanism to address any problem of their customers and distributors.
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