CCPA Sends Notices to 17 Companies for Breaching Direct Selling Regulations
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New Delhi, Dec 13 (NationPress) The Central Consumer Protection Authority (CCPA), functioning under the Department of Consumer Affairs, issued notices to 17 companies on Friday for infringing the Consumer Protection (Direct Selling) Rules, 2021.
Out of these, 13 companies are currently under investigation, and responses from three of them are still awaited, as per the consumer watchdog.
Among these entities are Vihaan Direct Selling (India) Pvt. Ltd. (affiliated with QNet Group, Hong Kong), Triptales Pvt. Ltd., Oriens Global Marketing Pvt. Ltd., Zennesa Wellness Pvt. Ltd., Orgolife Solutions Pvt. Ltd., Oriflame India Pvt. Ltd., and Juncture Marketing Pvt. Ltd., among others.
CCPA stated, “The action is intended to tackle issues related to deceptive and exploitative practices within the direct selling sector and ensure compliance with the established regulatory framework aimed at protecting consumer interests.”
Some unscrupulous entities exploit the direct selling model to advance illegal pyramid or money circulation schemes.
“These organizations frequently make implausible promises of lucrative commissions, international trips, entrepreneurship opportunities, high returns, and a prosperous future, which depend on recruiting others, violating consumer trust and existing laws, thereby exposing consumers to fraudulent pyramid and money circulation schemes,” the CCPA elaborated.
The national consumer watchdog has ramped up efforts to regulate direct selling practices and ensure adherence to the applicable legal framework.
The government enacted the Consumer Protection (Direct Selling) Rules, 2021, creating a robust framework to oversee direct selling companies and protect consumer rights.
These regulations aim to foster transparency, accountability, and ethical practices within the direct selling sector, empowering consumers to make well-informed choices.
The Department has urged all direct selling organizations to strictly comply with the regulatory framework and prioritize consumer welfare in their operations.
“Consumers are encouraged to remain alert and report any suspected illegal activities or violations associated with direct selling to the relevant authorities,” stated the CCPA.
