NEW DELHI, Dec 14: The Central Consumer Protection Authority (CCPA), under the Department of Consumer Affairs, has issued notices to 17 entities found violating the Consumer Protection (Direct Selling) Rules, 2021. Thirteen of these entities are currently under investigation.

Among the companies named in the notices are Vihaan Direct Selling (India) Pvt. Ltd., a sub-franchise of 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.

The action taken by the CCPA is part of efforts to address deceptive and exploitative practices within the direct selling industry and ensure compliance with the regulatory framework that safeguards consumer interests. The CCPA emphasized that some fraudulent entities are using the direct selling model to promote illegal pyramid and money circulation schemes.

“These entities often make unrealistic promises of high commissions, foreign trips, entrepreneurship, high returns, and a wealthy future, contingent on recruiting others,” said the CCPA, noting that such practices violate consumer trust and established laws while exposing consumers to fraudulent schemes.

The government introduced the Consumer Protection (Direct Selling) Rules, 2021, to establish a robust framework to regulate direct selling entities and protect consumer rights. These rules are aimed at promoting transparency, accountability, and ethical practices in the industry, allowing consumers to make informed choices.

In light of these developments, the Department of Consumer Affairs urged all direct selling entities to strictly follow the regulations and prioritize consumer welfare in their operations. The CCPA also advised consumers to remain vigilant and report any suspected illegal activities or violations related to direct selling to the appropriate authorities.