Brain Storming Session on Odisha Direct Selling Guidelines, 2017

National law University Odisha organised a Brain Stroming Session on Odisha Direct Selling Guidelines, 2017 in collaboration with Department of Food Supply and Consumer Welfare, Government of Odisha and PLR Chambers, New Delhi. The programme was attended by  Mr Jyoti Lakra, DCA cum Additional secretary, Department of Food Supply and Consumer Welfare, Government of Odisha (on behalf of the Ministry) ,Dr. Vijay Kumar Singh, Professor and HOD Department of Law and Management at UPES School of Law Mr. Aditya Rao, Partner, PLR Chambers , Mr. Aymen Mohad, Expert on Direct Selling , Ms. Chitralekha Dass, Senior Associate PLR Chambers, Dr. Yogesh Pratap Singh, Registrar, National Law University Odisha, Dr. Anup Kumar Pattnaik, Visiting Faculty, National Law University Odisha Mr. Mayank Tiwari, Assistant Professor of Law, National Law University Odisha, Ms. Sudatta Barik, Ms. Rashmi Rekha Baug and Students of National Law University Odisha

The concept of Direct Selling functions outside a fixed retail shop as a fixed place is not the focus of the direct sellers. The Odisha Direct Selling Guidelines have come up head on by the State Government of Odisha as a part of implementation of Centre’s scheme of eliminating the Ponzi schemes in the Indian economy. It is a privilege for Centre for Consumer Law, National Law University Odisha in association with PLR Law Chamber Delhi and Dr. Vijay Kumar Singh to work together on the Guidelines and make this initiative a huge success.

The consumers do not have any means to differentiate between a genuine scheme and a ponzi scheme therefore these guidelines list down the role and duties of the Direct Sellers and the Direct Selling Enterprises. The differentiation is important because there are genuine schemes through which many people get employment and are encouraged to be there.

For detection of frauds, it is important that a technical as well as an economical review is carried out both quantitatively and qualitatively. The Guidelines mention some of the criteria for the same and some have to be developed. A multi layered Ponzi scheme which forms a pyramid scheme (specifically prohibited under the Act), focuses on compensation through recruitment and not sales.  This is the easiest differentiation one can make between the two schemes.

The initiative of the government has also had some judicial considerations by the various High Courts and the Supreme Court. The nodal Department for the same across the 11 states who have implemented the scheme is generally the Consumer Welfare Department.

There were various initiatives in the past like the White Paper on the Direct Selling Guidelines, the 2 Parliamentary Standing Committees that were later on used by the IMC. There were also various initiatives by IMC and IMJ.

Now through the Guidelines, the State is trying to devise a workable set of Guidelines, which will aim at consumer protection.