Mumbai, Nov 13 – Maharashtra’s state government has created a new committee to set rules for direct‑selling companies and the distributors that run them, a sector that has operated without a clear regulatory framework in the state.
The committee is led by the Deputy Secretary of the Food, Civil Supplies and Consumer Protection Department. It will work with the Legal Metrology Department, the Indian Direct Selling Association, and other Food and Civil Supplies officials to draft a comprehensive set of rules.
A government resolution released yesterday calls the group to study how other Indian states regulate direct selling. The committee will compare those guidelines, suggest changes, and hand its recommendations back to the state government in the coming months.
Direct selling is a business model where companies reach consumers straight through independent distributors, skipping traditional retail stores. Distributors may buy products from the firm or earn commissions on sales. In Maharashtra, a large number of multi‑level marketing firms rely on a network of such distributors, creating a market that lacks clear oversight.
The lack of rules has raised concerns about consumer protection and business oversight. The new committee aims to close that gap by creating clear, enforceable guidelines so that both distributors and customers are better protected.
Once the committee’s recommendations are submitted, the state government plans to draft final rules to regulate direct‑selling operations in Maharashtra.
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