D. Responsibilities of Direct Selling Member Entity towards Direct sellers
- Direct Selling Member Entity shall Provide a mandatory
orientation session to all prospective direct sellers providing fair and accurate information on all aspects of the direct selling operation, including but not limited to the remuneration system and expected remuneration for newly recruited direct sellers.
- Direct Selling Member Entity shall Provide accurate and complete information to prospective and existing direct
sellers concerning the reasonable amount of remuneration opportunity, and related rights and obligations.
- Direct Selling Member Entity shall Pay all dues and make withholdings from direct sellers in a commercially
reasonable manner.
- Direct Selling Member Entity shall Notify and provide a full refund or buy-back guarantee to every direct seller
on reasonable commercial terms which can be exercised within a period of 30 days, from the date of the distribution of the goods or services to the direct seller
- Direct Selling Member Entity shall Notify and provide to every direct seller a cooling-off period which entitles
such direct seller to return any goods /services purchased by the direct seller during the cooling-off period.
- That Direct Selling Member Entity shall execute a contract agreement, whether directly or indirectly, with
Direct Sellers before enrolment.
- That Direct Selling Member Entity shall provide Agreement in a manner consistent with Section 10 of
the Indian Contract Act, 1872.
- In addition to the rights and obligations of parties to this abovementioned agreement,That Direct Selling Member Entity may execute other rights and obligations that are coextensive with rights and
obligations of parties under the Indian Contract Act, 1872.
- That Direct Selling Member Entity shall execute the agreement in writing, describing the material terms of
participation and shall
• Not compel or induce the direct seller to purchase goods or services in an amount that exceeds an amount that can be expected to be sold to consumers within a reasonable period of time.
• Allow or provide the direct seller a reasonable cooling-off period in which to cancel participation and receive a refund for goods or services purchased.
• Allow for the termination of contract, with reasonable notice, in such instances and on such terms where a direct seller is found to have made no sales of goods or services for a period of up to two years since the contract was entered into, or since the date of the last sale made by the direct seller.
• Allow or provide for a buy-back or repurchase policy for currently marketable goods or services sold to the direct seller at the said direct seller‟s request at reasonable terms.
