In the world of direct selling and MLM (multi-level marketing), building trust and transparency with consumers and sellers is crucial. With thousands of people joining direct selling companies every day, it’s natural that questions, disputes, or complaints may arise.
To handle these effectively, the Direct Selling Rules 2021, notified under the Consumer Protection Act, 2019, have made it mandatory for all direct selling entities and their direct sellers to establish a proper grievance redressal mechanism.
Let’s break it down in simple terms.
What is Grievance Redressal in Direct Selling?
Grievance redressal refers to the system that allows consumers, distributors, or other stakeholders to raise complaints and get a timely resolution from the company.
This includes issues like:
- Product defects or delays
- Wrong or misleading claims
- Payment or refund problems
- Misbehavior by direct sellers
- Contractual disputes
Why is Grievance Redressal Important?
- Protects consumer rights
- Enhances brand credibility
- Ensures fair business practices
- Keeps the company compliant with law
- Builds trust among direct sellers and customers
What Do the Direct Selling Rules 2021 Say?
As per the Consumer Protection (Direct Selling) Rules, 2021:
1. Every Direct Selling Company Must Have a Grievance Officer
- The officer must be appointed officially and listed on the website
- Name, contact details, and email ID must be easily accessible
- Must acknowledge the complaint within 48 working hours
- Must resolve the issue within 30 days
2. Online Complaint Filing is Mandatory
- Direct selling companies must provide online complaint registration
- Complaint status tracking should be available to users
3. Maintain a Grievance Record
- A complaint register or database must be maintained with all details:
- Complaint received date
- Issue details
- Action taken
- Date of resolution
4. Escalation Process
If the issue is not resolved, the consumer can escalate it to:
- Consumer Commission (District/State/National)
- Legal authorities
Central or State Monitoring Authorities for Direct Selling
How Can Consumers File a Complaint?
Consumers or direct sellers can file complaints through:
- The company’s official website grievance portal
- Emailing the Grievance Officer directly
- Calling the official customer care number
- Filing on platforms like National Consumer Helpline (NCH)
Filing a written complaint under Consumer Protection Act in court
Tips for MLM Companies to Stay Compliant
- Hire a qualified Grievance Redressal Officer
- Display contact details clearly on the website
- Ensure your response time is under 48 hours
- Set up a ticketing system or chatbot to manage complaints
- Train your direct sellers to avoid misleading or aggressive selling practices
Final Words
The grievance redressal mechanism is not just a legal formality in direct selling—it’s a sign of a responsible, ethical, and customer-first business. If you’re a consumer, know your rights.
If you’re a direct seller, follow fair practices.
And if you’re a direct selling company, build a strong complaint redressal system to stay trusted and compliant in 2025 and beyond.
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Need Expert Help?
At Gavel Direct Selling Consultant, we specialize in helping direct selling companies stay legally compliant, build strong grievance redressal systems, and align with the Direct Selling Rules 2021. Whether you’re setting up a new MLM business or improving your existing structure, our team offers expert legal and strategic guidance every step of the way.
📞 Contact us today 7011520061.