Maharashtra sets up committee to set rules for direct-to-consumer companies 

According to the government resolution, the committee will study the rules and guidelines related to direct selling implemented in other states and submit recommendations to the Maharashtra Government.

“Direct selling is a business model where companies sell products directly to consumers through independent distributors, bypassing intermediaries and traditional retail channels. In this process, distributors either purchase products from the company or earn commissions by selling directly to customers,” said the government resolution.

Companies connect with consumers through direct sellers rather than through intermediaries or middlemen. Some companies sell directly in the market, while others use a network of distributors to sell their products,” it added.

As per the GR, in the current scenario, there are no specific regulations governing direct selling companies and vendors in the state. “To address this gap, a meeting was organised in October by the State Government to discuss the creation of guidelines for the supervision of the direct selling industry. During this meeting, a decision was made to form a committee tasked with drafting the rules and guidelines for monitoring and supervising these companies and vendors,” it said.

The absence of clear guidelines has created challenges in consumer protection and business oversight. The committee is expected to submit its recommendations in the coming months, after which the Maharashtra Government will formulate rules for the direct selling sector.

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