IDSA seeks law to regulate direct selling industry
IDSA asks government to bring in a law to check mushrooming of players, whose intentions are 'not to sell but to make money.'business Updated: Jul 16, 2007 13:49 IST
Indian Direct Selling Association (IDSA) has asked the government to bring in a law to regulate the industry and check mushrooming of players, whose intentions are 'not to sell but to make money.'
"We have strongly demanded from the Ministry of Consumer Affairs to enact a direct selling law in order to regulate this industry as in case of stock market and other types of industries," P Sanker, Chairman, IDSA, a self-regulatory body for direct selling industry, told PTI.
"We have observed that several companies have launched money changing scheme in several parts of the country. These companies involve people just to collect money and no product is sold through these transactions. Their intention is to make money, which is not acceptable," he said.
With the appointment of the regulator, it would be easy to deter the activities of fly-by-night companies who enter the market just to fool people, he said adding, it would also lead to strengthening of faith among people.
IDSA has also conceived a preventive mechanism whereby complaints against 'erring' companies could be launched in respective police stations, he informed.
Sanker expected the Indian direct selling industry to grow up to Rs 10,000 crore mark in the next five years.
"There is a lot of potential in this industry which is still untapped, keeping in mind the population of the country," he said.
With the presence of just 16 active players in the market, the industry posted a growth of around 13 per cent at Rs 3,100 crore in 2005-06 against previous year's Rs 2,711 crore.