With the exponential rise of the direct selling industry in India, regulatory oversight has become imperative to ensure ethical practices, safeguard consumer interests, and eliminate fraudulent schemes. In alignment with the Consumer Protection (Direct Selling) Rules, 2021, the Government of Haryana has issued an official notification outlining a robust monitoring mechanism for the regulation of direct selling entities and direct sellers within the state.
The initiative is a significant step toward promoting transparency and accountability in the direct selling ecosystem. This article provides a comprehensive breakdown of Haryana’s Direct Selling Monitoring Mechanism as per the Government Order issued in March 2025.
Background: Rise of Direct Selling and the Need for Oversight
Direct selling, which allows companies to market products directly to consumers through a network of independent sellers, has witnessed remarkable growth in India. However, the line between legitimate direct selling and fraudulent pyramid schemes is often blurred. Recognizing this, the Government of India introduced the Consumer Protection (Direct Selling) Rules, 2021, which mandated state-level monitoring bodies to ensure local compliance.
In response, Haryana has implemented its own Direct Selling Monitoring Mechanism through an official Government Order, thus strengthening the enforcement of these central rules at the state level.
Objectives of the Haryana Direct Selling Monitoring Authority
The core objectives of Haryana’s monitoring mechanism are:
1. Ensuring Compliance with Direct Selling Rules
The mechanism is designed to enforce the provisions of the Consumer Protection (Direct Selling) Rules, 2021, within the jurisdiction of Haryana.
2. Prohibiting Fraudulent Schemes
It aims to identify and eliminate fraudulent pyramid or money circulation schemes that exploit the guise of direct selling.
3. Consumer Awareness and Protection
By maintaining vigilance over direct selling practices, the mechanism helps protect consumers from deceptive marketing and unethical selling practices.
4. Coordination Across Departments
It facilitates inter-departmental coordination for efficient monitoring, compliance audits, and law enforcement actions where necessary.
Composition of the Monitoring Authority
To ensure a multifaceted and expert-driven approach, the monitoring committee consists of high-ranking officials from several key government departments. The composition includes:
- Secretary, Department of Consumer Affairs, Government of India
- Commissioner, Food, Civil Supplies & Consumer Affairs Department, Haryana
- Director General of Police, Haryana
- Controller, Legal Metrology, Haryana
- Commissioner, State Taxes Department, Haryana
- Commissioner, CGST (Central Goods and Services Tax), Haryana
- Director, Information & Public Relations Department, Haryana
- Director, Industries and Commerce Department, Haryana
- District Food and Supplies Controllers of all districts
- Representatives from Law, Finance, Home, and Taxation Departments
This cross-functional committee ensures the application of both state and central legal frameworks to monitor and guide the operations of direct selling entities effectively.
Designated Nodal Department
The Department of Food, Civil Supplies & Consumer Affairs, Haryana has been appointed as the nodal department responsible for:
- Receiving and acting upon complaints from consumers, direct sellers, and other stakeholders.
- Ensuring compliance by direct selling entities registered to operate in Haryana.
- Periodically reporting activities, grievances, and enforcement actions to the central authorities.
Responsibilities of Direct Selling Entities & Direct Sellers
Under this mechanism, direct selling companies and their agents must:
- Register and operate legally under the relevant business laws in India.
- Submit undertakings and reports regarding their activities to the monitoring committee upon request.
- Avoid misleading advertising or product claims.
- Refrain from enrolling individuals into pyramid or money circulation schemes.
- Provide a grievance redressal system for consumers.
Non-compliance can lead to penalties, suspension of activities, and even prosecution under applicable laws, including the Consumer Protection Act, 2019.
Importance of the Haryana Monitoring Mechanism
The Haryana Direct Selling Monitoring Mechanism is a landmark development because:
- It provides a state-level enforcement arm to the national regulatory framework.
- It builds consumer trust in legitimate direct selling models.
- It protects aspiring entrepreneurs and consumers from fraud.
- It contributes to the formalization and growth of the direct selling sector in the state.
Conclusion
The establishment of the Direct Selling Monitoring Authority in Haryana underscores the government’s proactive stance in ensuring that the booming direct selling industry functions within a well-regulated environment. It offers a clear signal that fraudulent schemes will not be tolerated and that genuine business models will be supported.
Haryana has set a model for other states to follow, emphasizing that effective state-level oversight, combined with central regulations, can create a safe and prosperous space for direct sellers, companies, and consumers alike.
For businesses operating in this sector, compliance with the laid-down rules is not just a legal necessity—it’s a strategic move towards long-term credibility and success.
For the full notification and official document,