GUWAHATI, Jan 21: Indian Direct Selling Association Chairman Vivek Katoch on Tuesday said the e-commerce sector is a challenge for the industry’s growth, and the organisation is in talks with the government to address the issue.
He also said that only 10 states have either notified regulations or formed monitoring committees to protect the interests of consumers.
“E-commerce is a challenge for the direct selling industry. Our products are being sold online with a discounted price. We are working with the government on this,” Katoch said at a press conference here.
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He said that IDSA is negotiating with the government to control the digital marketing sites so that direct selling products are not sold through online mode.
“We are demanding that if at all such products are sold online, it should be done at maximum retail prices and not with heavily discounted rates,” Katoch said.
Asked about the Consumer Protection (Direct Selling) Rules, 2021, the industry veteran said the law empowered states to frame their own guidelines and monitoring committees to regulate direct selling companies, and protect the interests of consumers.
“However, only 10 states have done that so far. Out of those, seven have notified guidelines and three states, including Assam, have notified forming the monitoring committees,” he said.
The Consumer Protection (Direct Selling) Rules, 2021 complement other regulatory frameworks, including the Consumer Protection (E-Commerce) Rules, 2020, and the Legal Metrology (Packaged Commodities) Rules, 2011.
On the Centre issuing notices to more than a dozen direct selling firms for alleged unfair practices, Katoch said: “We welcome the government decision. These are allegations and a probe will reveal the actual scenario.”
He said there are around 300 direct selling companies in India and only 18 are members of the IDSA, making the sector highly unregulated and unmonitored.
In December last year, the Central Consumer Protection Authority (CCPA) issued notices to 17 direct selling firms, including Oriflame India, for alleged unfair trade practices and violation of consumer protection rules.
Talking about the northeast, Katoch said the region is growing at 16 per cent, adding Rs 255 crore from the previous year to cross Rs 1,854 crore in 2022-23.
“The northeast accounts for 8.7 per cent of the Rs 21,282-crore national turnover of the direct selling industry. It provides self-income opportunities to over 4.2 lakh direct sellers in the region,” he said.
Assam, the 9th largest direct selling market in the country, clocked Rs 1,009 crore in sales, 13 per cent year-on-year growth and a 4.7 per cent national market share, IDSA data showed.
“The northeast continues to be among the key and priority markets for the industry. The growth figures clearly reflect that it is poised for new horizons, reaffirming the relentless hard work of direct sellers,” Katoch said.
The industry is growing at more than 12 per cent at the national level, and has provided self-employment to nearly 86 lakh people, he added. (PTI)
