MUMBAI: Welcoming the Indian government’s initiative to amend the laws governing the direct selling business, QNET has called for setting up a regulator to govern the business. “There are misconceptions about the overall industry and it’s easy to be brushed off or tarnished under the Prize Chits and Money Circulation Schemes (Banning) Act,” Zaheer Merchant, international director of Corporate Affairs for QNET, said.
“The need of the hour is to formulate clear cut laws to govern the MLM and direct selling industry in India which has been generating large scale self-employment and contributing to the exchequer,” he said. Referring to reports that the Indian government has set up an Inter Ministerial Group to look into the functioning of MLM business, Merchant said: “fast growing economies such as Thailand, Malaysia, Indonesia, Vietnam, Taiwan and Singapore all have a specific statute that regulate, and more important, facilitate direct selling.”
“We are confident that the government will consider all relevant legislation from other countries in reaching a fair and just conclusion and legislation here, so ensure equity and business interests are best served. We are happy to assist in any way we can, as I am sure will others in the industry or other industry bodies in other legislated markets. A specific regulator, like an ombudsman, for instance, would also be useful in matters of mediation or review,” he said.
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