Tamil Nadu Sets Up Direct Selling Monitoring Authority

Chennai, Feb 22 (PTI) Tamil Nadu is among eight states in the country that will set up a monitoring authority for direct selling entities, an industry official said on Thursday.

The monitoring authority would also serve as a redressal forum to receive complaints from consumers as it is empowered with stringent provisions.

Direct selling entities are businesses where individuals (micro-entrepreneurs) buy products from a parent organisation (for eg Tupperware) and sell them directly to customers, without intermediaries being involved.

Tamil Nadu continues to be the second top direct selling market after Karnataka in the southern region. It employs over 1.9 lakh micro-entrepreneurs, Indian Direct Selling Association Chairman Vivek Katoch said.

"Tamil Nadu is a key and priority for the direct selling industry in the southern region. The growth figures clearly reflect that the direct selling industry in the state is poised for new horizons, reaffirming the relentless hard work of direct sellers in the state," he was quoted as saying in a press release.

The Ministry of Consumer Affairs, through the Consumer Protection (Direct Selling) Rules 2021, has brought clarity to the operations of direct selling entities to protect consumers, he said.

"So far, eight states, including Tamil Nadu, have set up monitoring committees in compliance with the provisions of the rules. The other states are also following suit," he said.

The direct selling industry, Katoch said, accounts for 2.7 per cent of the overall national sales which stands at Rs 19,000 crore in 2021-22.

Tamil Nadu Civil Supplies and Consumer Protection department Principal Secretary Har Sahay Meena said the state has created a conducive environment for the industry.