Govt Won't Interfere with Direct Selling Business Model

New Delhi, Jan 12 (PTI) Consumer Affairs Secretary Rohi Kumar Singh on Friday told the direct selling industry that the authorities will not interfere with its business model as long as it is "right" and cautioned that the government cannot be taken for a ride.

His remarks come against the backdrop of concerns and certain instances of direct selling businesses getting linked with money circulation and ponzi scheme activities.

"As long as you are right, we are with you. But if money circulation is involved, subscription is not explained, then the government will interfere. You cannot take the government for a ride," Singh said while addressing a conference organised by the Confederation of All India Traders (CAIT).

The government has taken action against certain entities in the direct selling industry for alleged misdoings.

"The problem with your industry (direct selling) is perception... I am sure you are doing right but you need to work on your perception," he said and urged the industry to bring more clarity in their business model.

He also said that products are sold through multiple layers and the government does not want to interfere in the business model.

CAIT Secretary General Praveen Khandelwal said direct selling is the integral part of the retail trade. Its current market size is Rs 50,000 crore and the aim is to double it this year, he added.

There is a need to identify the "bad elements" in the industry, he said.

CAIT will hold a conclave of women direct sellers in the national capital on March 8 to mark the International Women's Day.