That the Distributor engaged in Product selling shall
I. carry their identity card and do not visit the customer's premises without prior appointment/approval;
II. At the initiation of a sales representation, without request, truthfully and identify themselves, the identity of the product selling entity, the nature of the goods or services sold, and the purpose of the solicitation to the prospective consumer;
III. Offer a prospective consumer accurate and complete explanation and demonstrations of goods and services, prices, credit terms, terms of payment, return policies, terms of guarantee, and after-sales service;
IV. Provide the following Information to the prospect/consumers at the Time of sale, namely;
a. Name, address, registration number or enrollment number, identity proof and telephone number of Distributor and details of PProductselling entity;
b. A description of the goods or services to be supplied;
c. Explain to the consumer the goods return policy of the company in the details before the transaction.
d. The order date, the total amount to be paid by the consumer, and the bill and receipt.
e. Time and place for inspection of the sample and delivery of goods
f. Information on their rights to cancel the order and return the product in saleable condition, i.e., any seal/protection on the goods is kept unbroken, and a full refund and the sum paid are availed.
g. Detail regarding the complaint Redressal mechanism.
V. The Distributor shall keep a proper book of accounts stating the details regarding the goods sold by him/ her in such form as per applicable law.
VI. The Distributor shall not:
a. Use misleading, deceptive, and unfair trade practices.
b. Use misleading, deceptive, and unfair recruiting practices, including misrepresenting actual or potential sales or earnings and advantages of Product selling to any prospective Distributor in their interaction with prospective Distributors.
c. Make any factual representation to prospective Distributors that cannot be verified or make any promise that cannot be fulfilled.
d. Present any advantages of Product selling to any prospective Distributor falsely and deceptively.
e. Knowledge-make omit to engage or cause or permit to be made any representation relating to the Product selling operation, including remuneration system and agreement between the PProductselling entity and the Distributor, or the goods or misleading.
f. Require or encourage Distributors recruited by the first mentioned Distributor to purchase goods and services in unreasonably large amounts.
g. Provide any literature and training entity to a prospective and existing Distributor within and outside the parent Product selling entity.
h. Require prospective or existing Distributors to purchase any literature, training material, or sales demonstration equipment.
VII. The company shall provide monetary and non-monetary sales benefits/incentives, including service tax/GST. The company shall not pay any service tax /GST to the Distributor. The Distributor shall be responsible for paying any service tax /GST (if any).
VIII|. The Distributor shall not create any cross-line in the company Network of the Distributor Entity/Company towards the Distributor.
I. That the company shall provide a mandatory orientation session to all prospective Distributors, providing fair and accurate Information on all aspects of the Product selling operation, including but not limited to the remuneration system and expected remuneration for newly recruited Distributors
II|. The company shall maintain proper records, either manual or electronic, of its business dealings, with complete details of the contract's goods and services terms, price, income plan, and details of Distributors, including but not limited to enrollment, termination, active status, earnings, etc.
a. The company shall maintain a "register of Distributors," wherein relevant details of each enrolled Distributor shall be updated and maintained.
b. Distributors' details shall include verified proof of address, proof of identity, and PAN.
III. The company shall maintain a proper and updated website with all relevant details of the company, contact information, its management, product information, product quality certificate, price, complete income plan, terms of contract with the Distributor, and complaint redressal mechanism for Distributors and consumers.
IV. the company shall provide the Distributor with their periodic account/ information concerning, as applicable, sales, purchases, details of earnings, commissions, bonuses, and other relevant data by agreement with the Distributors. All financial dues shall be paid, and any withholding made in a commercially reasonable manner;
V. The company shall monitor the value of the purchases of all its distributors every month. Once the purchase value crosses the VAT, should the company inform the distributors to pay the VAT?
VI. That the Company shall not compel a participant/Distributor to purchase goods-
a. For an amount that exceeds the amount for which such goods or services can be expected to be sold or resold to consumers.
b. For a quantity of goods or services that exceeds an amount expected to be consumed by sold or resold to consumers.
VII. That the Company shall not
a. (a) Use misleading, deceptive, or unfair recruiting practices, including misrepresentation of actual or potential sales or earnings, in their interaction with prospective or existing Distributors;
b. Make any factual representation to a prospective Distributor that cannot be verified or make any promise that cannot be fulfilled;
c. Present any advantages of Product selling to any prospective Distributor falsely or deceptively;
d. Make or cause, or permit to be made, any representation relating to its Product selling business, including remuneration system and agreement between itself and the Distributor, or to the goods or services being sold by itself or by the Distributor which is false or misleading;
e. Engage in, or cause or permit, any conduct that is misleading or likely to mislead about any material particulars relating to its Product-selling business, including the remuneration system and agreement between itself and the Distributor, or to the goods or services being sold by itself or by the Distributor;
f. Use, or cause or permit to be used, fraud, coercion, harassment, or unconscionable or unlawful means in promoting its Product selling practice, including remuneration system and agreement between itself and the Distributor, or the goods or services being sold by itself or by the Distributor.
g. Require its Distributors to provide any benefit, including entry fees and renewal fees, or to purchase any sales demonstration equipment or material to participate in its Product selling operations;
h. Provide any benefit to any person for the introduction or recruitment of one or more persons as Distributors;
i. Require the Distributors to pay any money by way of minimum monthly subscription or renewal charges;
VIII. The company shall be responsible for compliance with these Guidelines by any member of its network of product selling, whether such member is appointed directly or indirectly by the product selling entity.
Obligations of Distributor Entity/Company towards consumer
I. The Company shall provide information to the consumer upon purchase, which shall contain.
a. The name of the purchaser and seller.
b. The delivery date of goods or services
c. Procedures for returning the goods and
d. Warranty of goods and exchange/ replacement of goods in case of defect Provided that no Distributor shall, in pursuance of a sale, make any claim inconsistent with claims authorized by the Distributor entity.
II. The company and Distributor shall take appropriate steps to protect all private information a consumer provides.
III. That the Consumer Protection Act 1986 provision shall guide the Distributor and Company.
IV. The supply/distribution of goods should be done with the knowledge that such goods/products are inferior or exceeded their validity period per the manufacturer.
V. That the MRP should be visibly displayed on the package.
VI. The company/Distributor who sells goods to a consumer shall issue a cash bill to such consumer by the provision of the law for the time being forced in this respect.