(1). That the company shall provide a mandatory orientation session to all prospective Distributors providing fair and accurate information on all aspect of the Product selling operation including but not limited to the remuneration system and expected remuneration for newly recruited Distributors
(2). That the company shall maintain proper records either manual or electronic of their business dealing with complete details of their goods services terms of contract , price, income plan, details of Distributors ,including but not limited to enrollment, termination active status, earning etc
- (a) The company shall maintain a “register of Distributors” wherein relevant details of each enrolled Distributor shall be updated and maintained.
- (b) The details of Distributors shall include and not be limited to verified proof of address, proof of identity and pan.
(3) That the company shall maintain proper and updated website with all relevant details of the company, contact information, its management , product , product information, product quality certificate, price, complete income plan, terms of contract with Distributor and complaint redressal mechanism for Distributors and consumers.
(4) That the company shall provide to Distributor their periodic account/ information concerning, as applicable, sales, purchases, details of earning, commissions, bonus, and other relevant data, in accordance with agreement with Distributors. All financial dues shall be paid and any withholding made in a commercially reasonable manner.
(5) That the company shall monitor the value of the purchases of all its Distributors on a monthly basis and once the purchase value crosses the VAT threshold, the company shall intimate the Distributors to pay the VAT.
(6) That the Company shall not compel to a participant/Distributor to purchases goods-
- (a) For an amount that exceeds an 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 that can be expected to be consumed by or sold or resold to consumers.
(7). That the Company shall not
- (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 in a false or deceptive manner.
- (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 with regard to any material particulars 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.
- (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 in order 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.
(8). That the company shall be responsible for compliance of these Guidelines by any member of its network of Product selling, whether such member is appointed directly or indirectly by the Product selling Entity.