
Consumer Protection (Direct Selling) Rules, 2021: Regulating India’s Multi-Level Marketing Industry
India's direct selling sector, encompassing multi-level marketing (MLM) companies selling wellness, cosmetics, and household products through networks of independent sellers rather than fixed retail outlets, operated for decades without a binding statutory framework. The only regulatory reference point before 2021 was the Model Framework for Guidelines on Direct Selling, issued by the Department of Consumer Affairs on October 26, 2016, following consultations with the Ministry of Finance, the Department of Industrial Policy and Promotion, and select states including Delhi, Andhra Pradesh, and Kerala.






