Consumer Protection Authority Issues Notices to 17 Direct Sellers, including QNet Franchise Vihaan
Moneylife Digital Team 13 December 2024
The central consumer protection authority (CCPA) has issued notice to 17 entities that were found violating Consumer Protection (Direct Selling) Rules, 2021. Of these, 13 entities are currently under investigation and reply from three of the entities is awaited, the CCPA says.
 
The 17 entities that received notices from CCPA for alleged unfair trade practices, service deficiencies and violations of the Consumer Protection (Direct Selling) Rules, 2021, include: Vihaan Direct Selling (India) Pvt Ltd (a sub-franchise of QNet Group, Hong Kong), Triptales Pvt Ltd, and Oriens Global Marketing Pvt Ltd. 
 
Other direct sellers that were issued notices are: Zennesa Wellness Pvt Ltd, Orgolife Solutions Pvt Ltd, Oriflame India Pvt Ltd, Juncture Marketing Pvt Ltd, Wolte Marketing Pvt Ltd, Preet Life Care Pvt Ltd, Enroots Horizon Pvt Ltd, E biotorium network Pvt Ltd, Meghdoot Marketing Pvt Ltd, Suii Dhaaga Lifestyle Pvt Ltd, Winmarg Business Pvt Ltd, Ayusratna Natural Herbal Pvt Ltd, Biothon Lifecare Pvt Ltd and Okflip India Pvt Ltd.
 
As a part of its commitment to uphold consumer rights, CCPA has intensified its focus on regulating direct selling activities and ensuring compliance with relevant legal frameworks. In this regard, Authority says it carefully examined the websites of these direct-selling entities.
 
The government of India notified the Consumer Protection (Direct Selling) Rules, 2021, establishing a comprehensive framework to regulate direct selling entities and protect consumer interests. These rules aim to promote transparency, accountability, and ethical practices within the direct selling industry, enabling consumers to make informed decisions. 
 
However, CCPA says some fraudulent entities misuse the direct selling model to promote illegal pyramid or money circulation schemes. "These entities often make unrealistic promises of high commissions, foreign trips, entrepreneurship, high returns and wealthy future, contingent on recruiting others, which violates consumer trust and established laws, thereby exposing consumers to a fraudulent pyramid and money circulation schemes."
 
Three significant signs that a product is being used to disguise pyramid schemes are: a large joining fee or investment, compensation paid for recruiting and no right of return, buy-back or cooling-off period offered to consumers.
 
"Consumers are advised to stay vigilant and report any suspected illegal activities or violations related to direct selling to the appropriate authorities. Together, we can ensure a safe and trustworthy marketplace for all," the authority says.
 
You may want to read Moneylife coverage on MLM, direct selling or chain-money scams. Here is the link https://moneylife.in/economy-and-nation/mlm-chain-money 
Comments
Shaktikanta Das Retires: Navigating Crises, Leaving Challenges for Consumers
Sucheta Dalal, 13 December 2024
Shaktikanta Das, the 25th Governor of the Reserve Bank of India (RBI), demitted office on Monday, leaving an impressive legacy of navigating several crises during his six-year tenure. Taking charge after his predecessor Urjit Patel’s...
RBI Imposes Rs2.25 Lakh Penalty on 3 Cooperative Banks for Non-compliance
Moneylife Digital Team 13 December 2024
Reserve Bank of India (RBI) has imposed a penalty of Rs2.25 lakh on three cooperative banks for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs1 lakh has been imposed on Pondicherry...
Jhaveri Credits and Capital, 5 Others Fined Rs3 Lakh for Regulatory Violations
Moneylife Digital Team 13 December 2024
Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs2 lakh on Jhaveri Credits and Capital Ltd (noticee 1) and Rs1 lakh on the associated entities for regulatory violations for 10 years. SEBI...
RBI Slaps Rs5 Lakh Penalty on Ropar Central Cooperative Bank for Not Remitting Unclaimed Amounts to DEA Fund
Moneylife Digital Team 12 December 2024
Reserve Bank of India (RBI) has imposed a fine of Rs5 lakh on Punjab-based Ropar Central Cooperative Bank Ltd for non-compliance with directions under the provisions of Section 26A of the Banking Regulation Act (BR Act). 
 
The...
Free Helpline
Legal Credit
Feedback