Obligations
That the Distributor engaged in Product selling shall
1. Carry their identity card and not visit the customer’s premises without prior appointment/approval;
2. At the initiation of a sales representation, without request,
truthfully and clearly identify themselves, the identity of Product
selling entity, the nature of the goods or services sold and the
purpose of the solicitation to the prospective consumer;
3. Offer a prospective consumer accurate and complete
explanation and demonstrations of goods and services, prices,
credit terms, terms of payment, return policies, terms of
guarantee, after sales service;
4. Provide the following information to the prospect/consumers
at the time of sale, namely;
a. Name, address, registration number or enrollment number,
identity proof and telephone number of Distributor and details of
Product selling entity;
b. A description of the goods or services to be supplied;
c. Explain to the consumer about the goods return policy of the
company in the details before the transaction.
d. The order date, the total amount to be paid by the consumer
along with the bill and receipt.
e. Time and place for inspection of the sample and delivery of
goods
f. Information of his/ her rights to cancel the order and/ or to
return the product in saleable condition i.e. any seal/protection
on the goods is kept unbroken and avail full refund and sum paid.
g. Detail regarding the complaint Redressal mechanism.
5. The Distributor shall keep proper book of accounts stating the
details in respect of the goods sold by him/ her, in such form
as per applicable law.
6. The Distributor shall not:
a. Use misleading, deceptive and /or unfair trade practices.
b. Use misleading, false, deceptive and/or unfair recruiting
practices, including misrepresentation of actual or potential
sales or earnings and advantages of Product selling to any
prospective Distributor in their interaction with prospective
Distributors.
c. Make any factual representation to prospective Distributors
that cannot be verified or make any promise that cannot be
fulfilled.
d. Present any advantages of Product selling to any prospective
Distributor in a false and/ or a deceptive manner.
e. Knowledge make omit engage or cause or permit to be made
any representation relating to the Product selling operation
including remuneration system and agreement between the
Product selling entity and the Distributor, or the goods or
misleading.
f. Require or encourage Distributors recruited by the first
mentioned Distributor to purchase goods and/or services in
unreasonably large amounts.
g. Provide any literature and/ or training entity, to a prospective
and/ or existing Distributor both within and outside the parent
Product selling entity.
h. Require prospective or existing Distributor to purchase any
literature or training material or sales demonstration
equipments.
7. The company shall provide monetary and non-monetary sales
benefit/incentive including service tax/GST. The company
shall not pay any service tax /GST to the Distributor. The
Distributor shall be responsible to pay any service tax /GST (if
any).
8. The Distributor shall not create any cross line in the sales
Network of the company.
Obligations of Distributor Entity/Company towards Distributor
1. That the company shall provide a mandatory orientation
session to all prospective Distributors providing fair and
accurate information on all aspect of the Product selling
operation including but not limited to the remuneration system
and expected remuneration for newly recruited Distributors
2. That the company shall maintain proper records either
manual or electronic of their business dealing with complete
details of their goods services terms of contract , price, income
plan, details of Distributors ,including but not limited to
enrollment, termination active status, earning etc.
a. the company shall maintain a “register of Distributors”
wherein relevant details of each enrolled Distributor shall be
updated and maintained.
b. The details of Distributors shall include and not be limited to
verified proof of address, proof of identity and pan.
3. That the company shall maintain proper and updated website
with all relevant details of the company, contact information, its
management , product , product information, product quality
certificate, price, complete income plan, terms of contract with
Distributor and complaint redressal mechanism for Distributors
and consumers.
4. That the company shall provide to Distributor their periodic
account/ information concerning, as applicable, sales, purchases,
details of earning, commissions, bonus, and other relevant data,
in accordance with agreement with Distributors. All financial
dues shall be paid and any withholding made in a commercially
reasonable manner;
5. That the company shall monitor the value of the purchases of
all its Distributors on a monthly basis and once the purchase
value crosses the VAT threshold, the company shall intimate the
Distributors to pay the VAT.
6. That the Company shall not compel to a participant/Distributor
to purchases goods—
a. For an amount that exceeds an amount for which such goods
or services can be expected to be sold or resold to consumers.
b. For a quantity of goods or services that exceeds an amount
that can be expected to be consumed by or sold or resold to
consumers.
7. That the Company shall not
a. Use misleading, deceptive or unfair recruiting practices,
including misrepresentation of actual or potential sales or
earnings, in their interaction with prospective or existing
Distributors;
b. Make any factual representation to a prospective Distributor
that cannot be verified or make any promise that cannot be
fulfilled;
c. Present any advantages of Product selling to any prospective
Distributor in a false or deceptive manner;
d. Make or cause, or permit to be made, any representation
relating to its Product selling business including remuneration
system and agreement between itself and the Distributor, or
to the goods or services being sold by itself or by the Distributor
which is false or misleading;
e. Engage in, or cause or permit, any conduct that is misleading
or likely to mislead with regard to any material particulars
relating to its Product selling business, including remuneration
system and agreement between itself and the Distributor, or to
the goods or services being sold by itself or by the Distributor;
f. Use, or cause or permit to be used, fraud, coercion,
harassment, or unconscionable or unlawful means in promoting
its Product selling practice, including remuneration system and
agreement between itself and the Distributor, or the goods or
services being sold by itself or by the Distributor.
g. Require its Distributors to provide any benefit, including entry
fees and renewal fees or to purchase any sales demonstration
equipment or material in order to participate in its Product selling
operations;
h. Provide any benefit to any person for the introduction or
recruitment of one or more persons as Distributors;
i. Require the Distributors to pay any money by way of minimum
monthly subscription or renewal charges;
8. That the company shall be responsible for compliance of these
Guidelines by any member of its network of Product selling,
whether such member is appointed directly or indirectly by the
Product selling Entity.
Obligations of Distributor Entity/Company towards consumer
1. That the Company shall provide information to the consumer
upon purchase which shall contain.
a. The name of the purchaser and seller.
b. The delivery date of goods or services
c. Procedures for returning the goods: and
d. Warranty of goods and exchange/ replacement of goods
in case of defect Provided that no Distributor shall, in pursuance
of a sale, make any claim that is not consistent with claims
authorized by the Distributor entity.
2. That the company and Distributor shall take appropriate steps
to ensure the protection of all private information provide by a
consumer.
3. That Distributor and company shall be guided by the provision
of the consumer protection Act 1986.
4. That the supply/Distribution of goods with the knowledge
that such goods/products are inferior or exceeded its validity
period as per the manufacturer.
5. That the MRP should be visibly displayed on the package.
6. That the company/Distributor who sells goods to a
consumer shall issue a cash bill to such consumer in
accordance with the provision of the law for the time being
force in this respect