Guidelines provide instructions to assist companies in maintaining ethical business practices and avoiding legal issues. A direct selling company utilizes self-employed direct sellers to recommend and retail products through direct marketing rather than fixed retail locations. Direct sellers are also known as distributors or consultants.

2. 1.Guidelines
"Guidelines" is the compilation of instructions issued to assist the
companies to observe self-control for maintaining ethical business practices
and to avoid being booked under "The Prize Chit and Money Circulation
Banning Act 1978", "The Banning Act 2017" or various acts in states
including MPIDA, TNPIDA, OPIDA etc

3. "Consumer" refers to any person/s whether as an individual or as an
organization (a group of individuals).
2.Consumer

4. "Direct selling" is the marketing and retailing of products to people in places
other than fixed retail locations. It’s primarily a B2C (Business to
consumer) model with some exceptions (where the agreement is entered
into between the Direct selling entity and an Entity / Organization-
Proprietary, Partnership, Limited liability Partnership, One person
company / Private limited, Trust, Public limited, etc.)
3. Direct Selling

5. "Company" is a business organization that manufactures or buys and sells
products or provides services in exchange for money, i.e., the organization
may be a manufacturer or a trader of the product/s.
4. Company

6. "Direct selling company" is a company which utilizes the services of
self-employed individuals known as direct sellers as per the definition of
direct seller to recommend and retail product/s.
5. Direct Selling Company

7. "Direct Sellers are also known as Distributors, Associates, Independent
business owners, Consultants, Networkers, Members, Advisors,
Independent business associates, Affiliates, Independent representatives,
etc.
6.Direct Seller

8. "Active Direct seller" is a direct seller whose monthly purchase from the
company exceeds INR 50.
7.Active Direct Seller

9. "Prospect" is a person to whom an offer or a proposal is made by the Direct
Seller to join a Direct Selling opportunity or to purchase goods or services.
8. Prospect

10. "Product" refers to anything, goods or services, tangible or intangible that
constitutes the subject of an intended direct selling transaction.
9. Product

11. "Saleable" with respect to goods and / or services, means unused and
marketable, unexpired and undamaged
10. Saleable

12. "Price" is the money consideration for a sale of goods.
11. Price

13. "Quality" is the ability to perform satisfactorily in service and is suitable for its
intended purpose. As indicated in the literature including brochures, labels,
and presentations developed / distributed / retailed by the company. Quality
of goods includes their state or condition.
12. Quality

14. "Satisfaction guarantee" is the promise to the consumer to empower
him / her to return the product if he / she does not get the results as per the
expectations or as promised/claimed by the company. This policy is to
address the concerns of issues regarding the quality of the product/s.
13. Satisfaction Guarantee

15. "Money back guarantee" is the promise to the direct seller to empower
him / her to return the goods if he / she is unable to sell the purchased
product/s to the consumer/s or use them for self-consumption.
14. Money Back Guarantee

16. "Negative product list" is the list of products / services which are not to be
promoted by the company deploying a Direct / Single level / Multilevel
marketing compensation plan.
15. Negative Product List

17. "Special product list" is the list of products / services which may be promoted
along with the conditions mentioned along with them.
16. Special Product List

18. "Delivery" is a voluntary transfer of possession from one party to another.
17. Delivery

19. "Office" a room, set of rooms, or building used as a place of exclusively
conducting business activities.
18. Office

20. "Enrol" is to introduce / register / signup formally through a legally
enforceable written contract to undertake direct selling business on
principal to principal basis as a participant or an individual or any entity
including any names mentioned under the definition of a direct seller.
19. Enrol

21. "Marketing organization" is the way of representing the tiered nature of the
direct sellers in a graphical form to help them recognize their relative
positions to the company or direct sellers above or below them.
20. Marketing Organization

22. "Compensation plan" is a method to calculate the commissions/incentives
and/or the rewards to be given to / among direct seller/s from the
turnover achieved by them and/or their marketing organization.
21. Compensation Plan

23. "Virtual currency" (also known and circulated in the form of Crypto-currency,
e-currency, e-money, electronic cash, electronic currency, e-vouchers,
digital money, digital cash, virtual cash, digital currency, cyber currency or
any other name) is the money that is only distributed / exchanged /
redeemed
22. Virtual Currency

24. "Cryptocurrency" is a digital currency that is generated by using computers to
solve cryptographic puzzles while the transactions are done using
cryptography. This currency may or may not be created and / or backed by
any collateral or any government.
23. Cryptocurrency

25. "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, as a result of enrolment of additional
subscribers to the scheme. The subscribers enrolling further subscriber(s)
occupy higher position and the enrolled subscriber(s) occupies a lower
position, thus, with successive enrolments, they form multi -layered
network of subscribers.
24. Pyramid Scheme

26. "Money Circulation Scheme" means any scheme, by whatever name
called,for the promise of quick or easy money, or for the receipt of any
money or valuable thing as the consideration on any event applicable to
the enrolment of individuals into the scheme or on investments by the
individuals as a consideration for a promise of returns for their
investments. It also includes a promise of quick or easy money, which is
not arithmetically viable or may not be related to sale of products by the
participants or their marketing organization.
25. Money Circulation Scheme

27. "Direct marketing" is a method in which companies communicate directly
with the consumers through formats like online advertisements, direct
mailing (postal mail and email), text messaging and telemarketing.
26. Direct Marketing

28. "Ecommerce" is the sale and / or purchase of goods or services conducted
using the world wide web. This method of distribution may or may not be
a part of the direct selling model.
27. Ecommerce

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