The Odisha Gazette EXTRAORDINARY PUBLISHED BY AUTHORITY No. 567, CUTTACK, WEDNESDAY, APRIL 11, 2018/CHAITRA 21, 1940 FOOD SUPPLIES & CONSUMER WELFARE DEPARTMENT NOTIFICATION The 5th February, 2018 No. 2409—FSCW-CC-G01-0001/2017/FSCW.— In pursuance of Office Memorandum of the Government of India issued vide F.No.21/18/2014-IT (Vol-II), Ministry of Consumer Affairs, Food & Public Distribution, Department of Consumer Affairs, dated the 9th September, 2016 the Governor of Odisha hereby makes the following Order, namely: — Short title, extent and commencement:
1. This order may be called the "The Odisha Direct Selling Guidelines Order, 2017".
2. It extends to the whole of the State of Odisha.
3. It shall come into force on the date of its publication in the Odisha Gazette.
Clause-1: - Definitions:
In these Guidelines unless and otherwise required:—
(1) "Act" means the Consumer Protection Act, 1986 (68 of 1986).
(2) "Appellate Authority" means the Secretary, FS&CW Deptt. State of Odisha.
(3) "Consumer" shall have the same meaning as provided under the Consumer Protection Act, 1986.
(4) "Cooling-off Period" means the duration of time counted from the date when the direct seller and the direct selling entity enter into an agreement under Clause 4 and ending with date on which the contract is to be performed and within which the direct seller may repudiate the agreement without being subject to penalty for breach of contract.
(5) "Direct Seller" means a person appointed or authorized, directly or indirectly, by a Direct Selling Entity through a legally enforceable written contract to undertake direct selling business on principal to principal basis.
(6) "Direct Selling" means marketing, distribution and sale of goods or providing of services as a part of network of Direct Selling other than under a pyramid scheme.
Provided that such sale of goods or services occurs otherwise than through a "permanent retail location" to the consumers, generally in their houses or at their workplace or through explanation and demonstration of such goods and services at a particular place.
Explanation: "Permanent retail location" includes such place, location or premises where the seller conducts sales in the ordinary course of business.
(7) "Direct Selling Entity", means an entity, not being engaged in a pyramid scheme, which sells or offers to sell goods or services through a direct seller.
Provided that "Direct Selling Entity" does not include any entity or business notified otherwise by the Government for the said purpose from time to time.
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(8) "Goods" means goods as defined under section-2 (52) of Odisha Goods & Services Tax Act, 2017;
(9) "Money Circulation Scheme" has the same meaning as defined under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
(10) "Network of Direct Selling" means a network of direct sellers at different levels of distribution, who may recruit or introduce or sponsor further levels of direct sellers, who they then support.
Explanation: "network of direct selling" shall mean any system of distribution or marketing adopted by a direct selling entity to undertake direct selling business in accordance with these Guidelines, and shall include the multi-level marketing method of distribution.
(11) "Prospect" means a person to whom an offer or a proposal is made by the Direct Seller to join a Direct Selling opportunity.
(12) "Pyramid Scheme" means: A multi layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, as a result of enrolment, action or performance of additional subscribers to the scheme. The subscribers enrolling further subscriber(s) occupy higher position and the enrolled subscriber(s) lower position, thus, with successive enrolments, they form multilayered network of subscribers:
Provided that the above definition of a "Pyramid Scheme" shall not apply to a multi layered network of subscribers to a scheme formed by a Direct Selling Entity, which consists of subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, where the benefit is as a result of sale of goods or services by subscribers; and the scheme/financial arrangement complies with all of the following:—
(a) It has no provision that a Direct Seller will receive remuneration or incentives for the recruitment / enrolment of new participants;
(b) It does not mandatorily require a participant to purchase goods or services:
(i) for an amount that exceeds an amount for which such goods or services can be expected to be sold or resold to consumers;
(ii) tor a quantity of goods or services that exceeds an amount that can be expected to be consumed by, or sold or resold to consumers;
(c) It does not require a participant to pay any entry/registration fee, cost of sales promotion equipment and materials or other fees relating to participation;
(d) It provides a participant with a written contract describing the "material terms" of participation;
(e) It allows or provides for a participant a reasonable cooling off period to participate or cancel participation in the scheme and receive a refund of any consideration given to participate in the operations;
(f) It allows or provides for a buy-back or repurchase policy for "currently marketable" goods or services sold to the participant at the request of the participant at reasonable terms;
(g) It establishes a grievance redressal mechanism for consumers, more particularly described in under the definition of direct selling entity herein.
Explanation 1— For the purposes of this proviso the term "material terms" shall means buyback or repurchase policy, cooling-off period, warranty and refund policy.
(13) Registering Authority: "Registering Authority" means DCA-cum-Addl. Secretary to Govt., FS & CW Deptt. Govt. of Odisha.
(14)"Remuneration System" means the system followed by the direct selling entity to compensate the direct seller which illustrates the mode of sharing of incentives, profits and commission, including financial and non-financial benefits, paid by the direct selling entity to the direct sellers, on a monthly or periodic or yearly basis or both, as the case may be.
This system, for every Direct Selling entity, shall:— 3
(a) have no provision that a direct seller will receive remuneration from the recruitment to participate in such direct selling;
(b) ensure that direct sellers shall receive remuneration derived from the sale of goods or services by such direct sellers;
(c) clearly disclose the method of calculation of remuneration.
(15) "Saleable" shall mean, with respect to goods or services, unused and marketable, which has not expired, and which is not seasonal, discontinued or special promotion goods or services.;
(16) "Services" means Services as defined under section-2 (102) of Odisha Goods & Services Tax Act, 2017.
(17) 'State' means the State of Odisha.
Clause 2. Conditions for setting up of Direct Selling business:
Every Direct selling entity intending to carry out direct selling business subsequent to the publication of the notification in the Gazette of Odisha, shall within 90 days comply with the following set of conditions for the conduct of direct selling business:
The direct selling entity shall:-
(1) Be a registered legal entity under the laws of India.
(2) 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. .
(3) Provide accurate and complete information to prospective and existing direct sellers concerning the reasonable amount of remuneration opportunity, and related rights and obligations.
(4) Pay all dues and make withholdings from direct sellers in a commercially reasonable manner; •
(5) 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;
(6) Notify and provide to every direct seller a cooling-off period which entitles such direct seller to:—
(a) The refund of any fee, including any 'training fee, franchise fee, fees for promotional materials or other fees related solely to the right to participate as a direct seller, paid upon the return of all goods received at the time of joining;
(b) Return any other goods purchased by the direct seller during the cooling-off period.
(7) The promoter or key management personnel should not have been convicted of any criminal offence punishable with imprisonment in last 5 years by any Court of competent jurisdiction;
(8) It shall have an office with identified jurisdiction of its operation in the State to facilitate and satisfy the consumers and direct seller to acquaint themselves with price of products, return or replacement of products and efficient delivery of goods and services, and post-sale redressal of grievances;
(9) Any trading or marketing or sale activity not adhering the above condition/clause shall not be considered as Direct Selling and would be dealt appropriately under relevant laws.
Clause 3: Conditions for conduct of Direct Selling Business Every Direct Selling entity shall comply with the following conditions:— 4
(1) It shall be the owner, holder, licensee of a trademark, service mark or any other identification mark which identifies the entity with the goods to be sold or supplied or services to be rendered.
(2) It shall issue proper identity document(s) to its Direct Sellers.
(3) It shall maintain proper records either manual or electronic of their business dealings, with complete details of their goods, services, terms of contract, price, income plan, details of direct sellers, including but not limited to enrolment, termination, active status, earning etc:—
(a) Every Direct Selling entity shall maintain a "Register of Direct Sellers" wherein relevant details of each enrolled Direct Seller shall be updated and maintained;
(b) The details of Direct Sellers shall include and not be limited to verified proof of address, proof of identity and PAN.
(c) The Register of Direct Sellers shall be in a machine readable and printable format
(4) It shall be registered under CGST/OGST Act, 2017. It shall maintain proper accounts and records as provided in the CGST/OGST Act/Rules for the business with s of direct complete details of the goods, services, terms of contract, price, income plan, detail sellers. (5) It shall maintain proper and updated website with all relevant details of the entity, contact information, its management, products, product information, product quality certificate, price, complete income plan, terms of contract with direct seller and complaint redressal mechanism for direct sellers and consumers. The website should have space for registering consumer complaints and should ensure that grievances are addressed within 45 days of making such complaints;
(6) It shall provide to all direct sellers their periodic account / information concerning, as applicable, sales, purchases, details of earnings, commissions, bonus and other relevant data, in accordance with agreement with the direct sellers. All financial dues shall be paid and any withholding made in a commercially reasonable manner;
(7) It shall monitor the value of the purchases of all its Direct Sellers/Distributors on a monthly basis and once the purchase value crosses the GST threshold, it must intimate the Direct Seller/Distributor to be registered under GST and pay GST.
(8) It shall provide training or demonstration materials, catalogues, brochure etc. to the direct sellers generally free or only at cost if at all;
(9) A Direct Selling entity 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 direct sellers;
(b) Make any factual representation to a prospective direct seller that cannot be verified or make any promise that cannot be fulfilled;
(c) Present any advantages of direct selling to any prospective direct seller in a false or deceptive manner,
(d) Make or cause, or permit to be made, any representation relating to its direct selling practice, including remuneration system and agreement between itself and the direct seller, or to the goods or services being sold by itself or by the direct seller which is false or misleading;
(e) Engage in, or cause or permit, any conduct that is misleading or likely to mislead as to any material particular by relating to its direct selling practice, including remuneration system and agreement between itself and the direct seller, or to the goods or services being sold by itself or by the direct seller;
(f) Use, or cause or permit to be used, fraud, coercion, harassment, or unconscionable or unlawful means in promoting its direct selling practice, including remuneration system and agreement between itself and the direct seller, or to the goods or services being sold by itself or by the direct seller;
(g) Require its direct sellers to provide any benefit or buy or acquire any goods or services, including entry fees and renewal fees in order to participate in its direct 5 selling operations, other than the purchase of sales demonstration equipment or materials at a resale and for which no commission, bonus or price not exceeding their cost which are not for any other advantage will be given to any person;
(h) Provide any benefit to any person for the introduction or recruitment of one or more persons as direct sellers;
(i) Require the direct sellers to pay any money by way of minimum monthly subscription or renewal charges;
(j) Knowingly make, omit, engage or cause, or permit to be made, any representation relating to its Direct Selling practice, including remuneration system and agreement between itself and the direct seller, or the goods or services being sold by itself or by the direct seller which is false or misleading.
(10) Notwithstanding the distribution system adopted by a direct selling entity, the Direct Selling Entity shall be responsible for compliance of these Guidelines by any member of its network of direct selling, whether such member is appointed directly or indirectly by the Direct Selling Entity.
(11) A Direct Selling Entity conducting business in the State of Odisha shall make necessary efforts to establish a place of business within the jurisdiction of the State.
Clause 4: Conditions for Direct Selling contract between Direct Seller/Distributor and Direct Selling Entity.
(1) Every Direct Selling entity shall execute a contract agreement, whether directly or indirectly, with Direct Sellers before enrolment:
(a) The Agreement shall be provided in a manner consistent with Section 10 of the Indian Contract Act, 1872;
(b) In addition to the rights and obligations of parties to this agreement under these guidelines or any other law in force, parties shall have rights and obligations that are coextensive with rights and obligations of parties under the Indian Contract Act, 1872;
(2) The agreement shall be made in writing, describing the material terms of participation and shall:
(a) Not compel or induce the direct seller to purchase goods or services in an amount that unreasonably exceeds an amount that can be expected to be sold to consumers or consumed within a reasonable period of time;
(b) 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 and also of any consideration given to participate in the operations of the applicant.
(c) 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;
(d) 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.
Clause 5: Certain obligations of Direct Sellers
(1) Direct Seller engaged in direct selling should carry their identity card and not visit the customer's premises without prior appointment/approval.
(2) At the initiation of a sales representation, without request, truthfully and clearly identify themselves, the identity of the direct selling entity, the nature of the goods or services sold and the purpose of the solicitation to the prospective consumer.
(3) Offer a prospective consumer accurate and complete explanations and demonstrations of goods and services, prices, credit terms, terms of payment, return policies, terms of guarantee, after-sales service.
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(4) 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 the direct seller and details of direct selling entity;
(b) A description of the goods or services to be supplied;
(c) Explain to the consumer about 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 along with the bill and receipt;
(e) Time and place for inspection of the sample and delivery of good;
(f) Information of his/her rights to cancel the order and / or to return the product in saleable condition and avail full refund on sums paid;
(g) Details regarding the complaint redressal mechanism.
(5) A direct seller shall keep proper book of accounts stating the details of the products, price, tax and the quantity and able other details in respect of the good sold by him/her, in such form as per applic law or as may be prescribed under law.
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(6) A direct seller shall not:—
(a) Use misleading, deceptive and / or unfair trade practices;
(b) Use misleading, false, deceptive, and / or unfair recruiting practices, including p Selling to any prospective direct seller, in their interaction with prospective Direct direct sellers;
(c) Make any factual representation to a prospective direct seller that cannot be verified or make any promise that cannot be fulfilled;
(d) Present any advantages of Direct Selling to any prospective direct seller in a false and /or a deceptive manner;
(e) Knowingly make, omit, engage, or cause, or permit to be made, any representation relating to the Direct Selling operation, including remuneration system and agreement between the Direct Selling entity and the direct seller, or the goods and / or services being sold by such direct seller which is false or misleading;
(f) Require or encourage direct sellers recruited by the first mentioned direct seller to purchase goods and / or services in unreasonably large amounts;
(g) Provide any literature and / or training material not restricted to collateral issued by the Direct Selling entity, to a prospective or existing direct sellers both within and outside the parent Direct Selling entity, which has not been approved by the parent Direct Selling entity;
(h) Require or encourage prospective or existing direct sellers to purchase any literature or training materials or sales demonstration equipment and if at all required such purchase shall not be at a cost exceeding the cost of materials.
Clause 6: Relationship between Direct Selling Entity and Direct Seller
(1) The relationship between Direct Selling entity and Direct Seller shall be determined as per the written agreement between the parties:—
(a) For rights and obligations that are expressly provided as conditions for the conduct of Direct Selling business under the guidelines for the Direct Selling entity and Direct Seller, the same shall prevail;
(b) All other rights and obligations, shall be determined as per the express terms of written agreement unless expressly provided otherwise in the contract between a Direct Selling entity and Direct Seller;
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(2) The Direct Selling entity will be liable for grievances arising out of sale of products, services or business opportunity by its Direct Sellers;
(3) It will be the responsibility of the Direct Selling entity to monitor and control the practices/methods adopted by the Direct Sellers;
Clause 7: Conduct for the Protection of Consumer
(1) Direct Sellers and Direct Selling Entity shall take appropriate steps to ensure the protection of all private information provided by a consumer;
(2) Direct Sellers and Direct Selling Entity shall be guided by the provision of the Consumer Protection Act 1986;
(3) All complaints received over phone, email, website, post and walk-in should have a complaint number for tracing and tracking the complaint and record time taken for redressal;
(4) Every Direct Selling company shall constitute a Grievance Redressal Committee whose composition, nature of responsibilities shall include but not limited to: —
(a) The Grievance Redressal Committee shall consist of at least three officers of the Direct Selling entity;
(b) The Grievance Redressal Committee shall address complaints and inform complainants of any action taken;
(c) Complaints may be made by any member of the general public against a Direct Seller of the company, an employee or any other officer of the entity;
(d) All such grievances will be resolved directly by the Direct Selling Entity.
(5) The direct selling entity 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 the goods and exchange / replacement of goods in case of defect:
Provided that no Direct Seller shall, in pursuance of a sale, make any claim that is not consistent with claims authorized by the Direct Selling Entity.
(6) Any person who sells or offers for sale, including an e-commerce platform/ marketplace, of any product or service of a Direct Selling Entity must have prior written consent from the respective Direct Selling Entity in order to undertake or solicit such sale or offer.
Clause 8: Prohibition of Pyramid Scheme & Money Circulation Scheme
(1) No person or entity shall promote a Pyramid Scheme, as defined in Clause 1(11) or enroll any person to such scheme or participate in such arrangement in any manner whatsoever in the garb of doing Direct Selling business.
(2) No person or entity will participate in Money Circulation Scheme, as defined in Clause 1(12) in the garb of Direct Selling of Business Opportunities.
Clause 9: Appointment of Monitoring Authority
(1) The Nodal department to deal with the issues related to Direct Selling in the State of Odisha will be FS&CW Department.
(2) The Nodal Officer for the submission of undertakings, registration as the Registering Authority, overall implementation, and monitoring of compliance under these Guidelines shall be the DCA-cum-Addl. Secretary to Govt. FS&CW Department.
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(a) The Nodal Officer will have the power to allow or reject the Registration of any Direct Selling Entity basing on the examination of documents submitted by the entity. However, in case of rejection, the reasons for rejection shall be recorded;
(b) The Nodal Officer will also have the power to enquire or caused to be enquired any allegations against any Direct selling Entity! Direct Seller for non-compliance of guidelines and pass appropriate orders.
(3) Any direct selling entity conducting direct selling acto fficer, ivities in in the the form of the of Odisha attached shall submit an undertaking and pro forma to the nodal pro forma, stating that it is in compliance with these guidelines:— a.
within a period of ninety (90) days from the date of issuance of these Guidelines, for existing Direct Selling Entity conducting direct selling activities in State of Odisha; or b.
before commencement of business in State of Odisha, for a new Direct Selling Entity proposing to undertake direct selling activities in State of Odisha.
(4) Direct selling entities shall also provide such details of its incorporation and other business details as may be notified from time to time.
(5) The Nodal Department shall prescribe the format and frequency for monitoring of compliance under these Guidelines on an annual basis.
(6) The registration issued under these Guidelines will be valid for a period of three (3) years and renewed in the same manner as a fresh registration under these Guidelines or such other format as may be prescribed.
(7) The Nodal Department shall prescribe the fees payable for processing of undertakings for registration and all or any other actions under these Guidelines.
Clause 10: Appeal:
Any Direct Selling Entity or Direct Seller aggrieved by any order passed by or action of the Nodal Officer may within fifteen days from the date of such order or action, appeal against such order, to the Appellate Authority.
ORDER It is ordered that this Direct Selling Guidelines Order, 2017 shall be published in an Extraordinary issue of the Odisha Gazette.
By Order of the Governor V.V. YADAV Commissioner-cum-Secretary to Government 9 DECLARATION BY DIRECT SELLING ENTITIES/COMPANIES PRO FORMA PART — A 1 (i) Name of the Company (As Registered)
(ii) CIN No:
(iii) Name and address of Directors on Board(Enclose details) 2 DETAILS OF REGISTRATION (WITH JURISDICTION)
(a)Address of Registered Office (Enclose copy of Registration Certificate):
(b) Email :
(c) Telephone Nos:
(d)Company Website:
(e)Details of other registrations (with jurisdiction), if any ( Attach copy of Registration Certificate)
(f) Type of Entity (Private, Public, Trust, Ltd. Etc.)
3 HEAD OFFICE & REGIONAL OFFICE
(a)Address
(b)E-mail
(c) Details of Key Management Personnel as per registration under the Companies Act:
(d)Details of Regional Office in the State of Odisha:
(e)Nodal Officer for interacting with D/o Consumer Affairs; (Name, designation, Tel No., e-mail, Fax, mobile No.)
(f) Details of Nodal Officer for coordination with the Government of Odisha (Name, designation, Tel No., e-mail, Fax, mobile No.):
4 Whether anyone from the Management was convicted by any court in the past within the past 5 years (from the date of application). If so, the details thereof;
5 Whether direct selling is of Products or services or both?
6 Details of License(s). Trade Mark or Principal Brand which identifies the company:
7 i. Address / Telephone Nos. / e-mails etc. of Customer Care & Grievance Redress Cells (HO & Slate Brarich(es) in Odisha);
ii. Details of Consumer Grievance Redress Committee as per guidelines:
a. Member Name, Phone No and email:
b. Member Name, Phone No and email:
c. Member Name, Phone No and email:
8 Details of Products / Services offered(Give link of websites):
9 Please confirm the following about your direct selling scheme:-
(a) It has no provision that a Direct Seller will receive remuneration or incentives for the recruitment /enrolment of new participants and provide that direct sellers will receive remuneration derived only from the sale of goods or services.
(b) It does not require a participant to purchase goods or services:
i. for an amount that exceeds an amount for which such goods or services can be expected to be sold or resold to consumers;
ii. 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;
.(c) It does not require a participant to pay any entry/registration fee, cost of sales demonstration equipment and materials or other fees relating to participation;
(d) It provides a participant with a written contract describing the "material terms" of participation;
Yes/ No Yes/ No Yes/ No Yes/ No Yes/ No 10
(e) It allows or provides for a participant a reasonable cooling-off period to participate or cancel participation in the scheme and receive are fund of any consideration given to participate in the operations;
(f) It allows or provides for a buy-back or repurchase policy for "currently marketable" goods or services sold to the participant at the request of the participant at reasonable terms;
Yes/No Yes! No Note:
1. Give details in regard to the above in an enclosure.
2.
In case any of the answers in this Para is 'No', please provide full details with reasons in an enclosure.
10 (a)Whether proper identity document(s) to all the Direct Sellers are issued. Yes/No
(b)Whether you maintain "Register of Direct Sellers" wherein relevant details of each enrolled Direct Seller is updated and maintained with details Yes! No including verifiable proof of address, proof of identity and PAN as per the Income Tax Act.
(c) What is the mechanism for payment of any taxes and duties pertaining to sale of goods or services, including the mechanism of ensuring compliance from direct sellers and distributors. Give details.
11 (a) The website is proper and updated regularly with all releva t n details, Yes/No contact information, details pertaining to management, products, product information and complaint redress mechanism for direct sellers and
(b) There are arrangements for registering consumer complaints online or Yes/No consumers.
otherwise and grievances are resolved within 45 days of date of making such com•taints. Details to be provided.
12 Notes/Remarks, if any.
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PART B (Direct Selling Business Details)
1. Details of Products / Services offered(Give link of websites) Yes/No
2. Please confirm the following about your Direct Selling scheme:-
(a) It has no provision that a Direct Seller will receive remuneration or incentives for the recruitment / enrolment of new participants and provide that Direct Seller will receive remuneration derived only from the sale of goods or services.
(b) It does not require a participant to purchase goods or services:
i. for an amount that exceeds an amount for which such goods or services can be expected to be sold or resold to consumers;
ii. 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;
(c) It does not require a participant to pay any entry/registration fee, cost of sales demonstration equipment and materials or other fees relating to participation;
(d) It provides a participant with a written contract describing the "material terms" of participation;
(e) It allows or provides for a participant a reasonable cooling-off period to participate or cancel participation in the scheme and receive a refund of any consideration given to participate in the operations;
(f) It allows or provides for a buy-back or repurchase policy for "currently marketable" goods or services sold to the participant at the request of the participant at reasonable terms;
Yes I No Yes / No Yes / No Yes / No Yes / No Yes / No Yes / No Note:
1) Give details in regard to the above in an enclosure.
2) In case any of the answers in this Para. is 'No', please provide full details with reasons in an enclosure.
3. (a) Whether proper identity document(s) to all the Direct Sellers are issued.
(b) Whether you maintain "Register of Direct Sellers" wherein relevant details of each enrolled Direct Seller is updated and maintained with details including verifiable proof of address, proof of identity and PAN as per the Income Tax Act.
(c) What is the mechanism for payment of GST? Give details.
Yes/No Yes / No
4. (a) The website is proper and updated regularly with all relevant details, contact information, details pertaining to management, products, product information and complaint redress mechanism for Direct Sellers and consumers.
(b) There are arrangements for registering consumer complaints online or otherwise and grievances are resolved within 45 days of date of making such complaints. Details to be provided.
Yes/No Yes/No
5. Notes/Remarks, if any.
12 Part — C ( UNDERTAKING ) I / We, in the capacity of of the company / firm declare that we are compliant with the following:
(a) We do not promote a Pyramid Scheme, as defined in Clause1(11) or enroll any person to such scheme or participate in such arrangement in any manner what so ever in the garb of doing Direct Selling business.
(b) We do not participate in Money Circulation Scheme, as defined in Clause1(12) in the garb of Direct Selling of Business Opportunities.
(c) We are compliant with all the remaining aspects mentioned in the guidelines issued vide GSR 1013(E), October 26, 2016 (Gazette of India) by the Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution and shall also provide such details as may be required by the Government of Odisha from time to time Place:
Date:
Name SEAL OF THE COMPANY Sd/- Designation Tel No E-mail.
List of documents to be provided:
1. Certificate of Registration/Bye-laws/Memorandum of Association
2. List of Board of Directors, with contact details
3. Brief details of direct selling scheme and compensation plan.
4. Sample of contract with direct sellers/distributors.
5.
Copy of the undertaking submitted to the Department of Consumer Affairs, Government of India
6.
Copies of compliances, including licenses or registrations for the sale of goods or services Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10 Ex. Gaz. 44-173+50 Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12