FSSAI Introduces Compliance Framework for Direct Sellers under FoSCoS
In a significant move to regulate the direct selling sector dealing in food products, the Food Safety and Standards Authority of India (FSSAI) has formally introduced “Direct Seller” as a distinct category under the Food Safety Compliance System (FoSCoS). This regulatory update, notified in July 2024, aims to streamline licensing and registration procedures and ensure that food safety standards are upheld across all modes of food distribution.
Definition of Direct Seller
As per the notification, a Direct Seller is defined as:
“A person appointed or authorised, directly or indirectly, by a Direct Selling Entity through a legally enforceable written contract to undertake direct selling business on a principal-to-principal basis.”
This definition aligns with the Consumer Protection (Direct Selling) Rules, 2021, and now finds express recognition in the food safety domain, emphasizing accountability and traceability in food distribution channels.
Licensing and Registration Requirements
FSSAI has laid down a tiered licensing structure for Direct Sellers based on annual turnover:
- FSSAI Registration: For turnover up to ₹12 lakhs.
- State License: For turnover above ₹12 lakhs and up to ₹20 crores.
- Central License: For turnover exceeding ₹20 crores.
Fee Structure:
| Type | Fee (excluding GST) |
| Registration | ₹100 |
| State License | ₹2,000 |
| Central License | ₹7,500 |
Permitted Categories of Food
The scope of operations for Direct Sellers is confined to specific food categories such as:
- Dairy products and analogues
- Fats and oils
- Cereals and cereal products
- Bakery products
- Spices, salts, sauces, soups
- Nutrition-specific foodstuffs
- Beverages (excluding dairy)
- Ready-to-eat/prepared foods
- Indian sweets and snacks
This restricted list ensures regulatory control and aligns with commonly traded items in the direct selling market.
Documentation & Compliance
The following documentation is required based on the type of application:
- For Registration:
- Government-issued ID
- Recent photograph
- For License:
- Identity and address proof
- Business constitution documents
- Food category declaration
- Proof of premises
Further, Direct Sellers are subject to routine inspection protocols, akin to those applicable to retail outlets. Adherence to FSSAI’s Schedule 4 hygiene and sanitary practices is mandatory.
Legal Implications
This notification reinforces the applicability of the Food Safety and Standards Act, 2006 to individuals in the direct selling sector. Direct Sellers engaged in the distribution of food products without appropriate registration/licensing may face penalties under Sections 50 to 67 of the Act, including fines, suspension of licenses, or prosecution.
Conclusion
With the introduction of Direct Seller registration under FoSCoS, FSSAI has taken a proactive step toward formalizing the food compliance ecosystem for the direct selling industry. Entities and individuals operating in this space are advised to ensure immediate compliance to avoid regulatory repercussions.
Gavel Law Firm advises direct selling businesses and independent sellers on FSSAI registration, compliance audits, and regulatory representation. For tailored legal assistance, reach out to our team.
DOWNLOAD NOTIFICATION Direct Seller Fssai