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Direct selling companies like M/s. Amway India, M/s. Avon Beauty India Private Ltd., M/s. Herbalife, M/s. Oriflame, M/s. Tupperware India, M/s. Surinder India have obtained necessary government approval from Foreign Investment Promotion Board (FIPB).
As per Indian Direct Selling Association (IDSA), there are more than 200 direct selling firms operating in India and most of them are small and regional players. The firms account for over 60% of all goods sold through direct selling route in India. The direct selling firms are predominantly unorganised and the information on the approvals taken by such firms is not available.
The IDSA is a self-regulating industry association that mandates its members to operate within the strict provisions of a code of ethics prescribed by the World Federation of Direct Selling Association. The code of ethics sets out fair and ethical principles that induce a congenial and healthy environment for the direct selling industry. Consumers are protected against illegal or unethical practices through the enforcement of the code. The government is in dialogue with the IDSA in this regard.
This was stated by Shri E.V.K.S. Elangovan, Minister of State for Commerce & Industry, in a written statement in the Lok Sabha today.
SB/MRS
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