Obligations
1. Carry their identity card at all times and refrain from visiting the customer's premises without prior appointment or approval.
2. At the initiation of any sales presentation, the Distributor must voluntarily and accurately identify themselves, disclose the identity of the product selling entity, specify the nature of the goods or services being offered, and clearly state the purpose of the solicitation to the prospective consumer.
3. The Distributor shall furnish prospective consumers with full, accurate, and clear information and demonstrations regarding the goods and services offered, including pricing, credit arrangements, payment terms, return policies, warranty terms, and after-sales support.
4. Provide the following information to the prospective consumer at the time of sale:
- The name, address, registration or enrollment number, identity proof, and telephone number of the Distributor, along with details of the product selling entity.
- A detailed description of the goods or services to be provided.
- Explain the Company's goods return policy to the consumer in detail prior to completing the transaction.
- The order date and the total amount payable by the consumer, along with the bill and receipt.
- The time and place for inspection of the sample and for delivery of the goods
- Information regarding his/her right to cancel the order and/or return the product in saleable condition-provided that any seal or protective covering on the goods remains intact-and to receive a full refund of the amount paid.
- Details regarding the complaint redressal mechanism.
5. The Distributor shall maintain proper books of account containing details of the goods sold by him/her, in such form as required under applicable law.
6. he Distributor shall refrain from the following:
- Adopt or participate in any misleading, deceptive, and/or unfair trade practices.
- Engage in any misleading, false, deceptive, and/or unfair recruiting practices, including misrepresenting actual or potential sales, earnings, or the advantages of product selling to any prospective Distributor during interactions.
- Make any factual representation to prospective Distributors that cannot be substantiated, or make any promise that cannot be fulfilled.
- Present any advantages of the product selling business to prospective Distributors in a false and/or deceptive manner.
- Knowingly make, omit, engage in, cause, or permit any representation relating to the product selling operations-including the remuneration system, the agreement between the product selling entity and the Distributor, or the goods-that is false or misleading.
- Require or encourage Distributors recruited by the first-mentioned Distributor to purchase goods and/or services in unreasonably excessive quantities.
- Provide any literature and/or training materials to prospective and/or existing Distributors, whether within or outside the parent product selling entity, without authorization.
- Compel or mandate prospective or existing Distributors to buy any literature, training materials, or sales demonstration equipment.
7. The Company shall provide monetary and non-monetary sales benefits/incentives, inclusive of applicable Service Tax/GST. The Company shall not bear or pay any Service Tax/GST on behalf of the Distributor. The Distributor shall be solely responsible for payment of any applicable Service Tax/GST.
8. The Distributor shall not create or attempt to create any cross-line arrangement within the Company's sales network.
Obligations of the Distributor Entity/Company Toward the Distributor
1. The Company shall conduct a mandatory orientation session for all prospective Distributors, providing fair and accurate information on all aspects of the product selling operations, including but not limited to the remuneration system and the expected earnings of newly recruited Distributors.
2. The Company shall maintain proper records, whether in manual or electronic form, of its business dealings, including complete details of goods and services, contractual terms, pricing, income plan, and Distributor information, including but not limited to enrollment, termination, active status, earnings, and related particulars.
- The Company shall maintain a "Register of Distributors," wherein the relevant details of each enrolled Distributor shall be duly recorded and regularly updated.
- The details of the Distributors shall include, but not be limited to, verified proof of address, proof of identity, and PAN.
3. The Company shall maintain a proper and regularly updated website containing all relevant details of the Company, including its contact information, management details, products and product information, product quality certifications, pricing, complete income plan, terms of contract with Distributors, and the grievance redressal mechanism for Distributors and consumers.
4. The Company shall provide the Distributor with periodic statements and information, as applicable, relating to sales, purchases, earnings, commissions, bonuses, and other relevant data, in accordance with the terms of the Distributor Agreement. All financial dues shall be paid, and any deductions or withholdings shall be made in a commercially reasonable manner.
5. The Company shall monitor the monthly purchase value of all its Distributors, and upon the purchase value exceeding the applicable VAT threshold, shall notify the concerned Distributor to discharge the applicable VAT liability.
6. The Company shall not compel any participant or Distributor to purchase goods.
- For an amount exceeding the price at which such goods or services can reasonably be expected to be sold or resold to consumers.
- For a quantity of goods or services exceeding what can reasonably be expected to be consumed, sold, or resold to consumers.
7. The Company is strictly prohibited from:
- Engage in any misleading, deceptive, or unfair recruiting practices, including misrepresenting actual or potential sales or earnings, in interactions with prospective or existing Distributors.
- Make any factual representation to a prospective Distributor that cannot be substantiated, or make any promise that cannot be fulfilled.
- Present any advantages of the product selling business to a prospective Distributor in a false or deceptive manner.
- Make, cause to be made, or permit any representation relating to its product selling business-including the remuneration system, the agreement between itself and the Distributor, or the goods or services offered by it or the Distributor-that is false or misleading.
- Engage in, cause, or permit any conduct that is misleading or likely to mislead with respect to any material particulars of its product selling business, including the remuneration system, the agreement between itself and the Distributor, or the goods or services sold by it or by the Distributor.
- Use, cause to be used, or permit the use of fraud, coercion, harassment, or any unconscionable or unlawful means in promoting its product selling practices, including the remuneration system, the agreement between itself and the Distributor, or the goods or services sold by it or by the Distributor.
- Require its Distributors to provide any benefit, including entry fees or renewal fees, or to purchase any sales demonstration equipment or materials as a condition for participating in its product selling operations.
- Provide any benefit to any person solely for the introduction or recruitment of one or more individuals as Distributors.
- Require Distributors to pay any amount by way of minimum monthly subscription fees or renewal charges.
8. The Company shall be responsible for ensuring compliance with these Guidelines by all members of its product selling network, whether appointed directly or indirectly by the Product Selling Entity.
Duties and Responsibilities of the Company Toward Consumers
1. The Company shall provide the consumer, at the time of purchase, with information containing the following:
- Details of the names of both the purchaser and the seller.
- The date of delivery of the goods or services.
- The procedures for returning the goods; and
- Warranty of the goods and provisions for exchange or replacement in case of defects; provided that no Distributor shall, in connection with any sale, make any claim that is inconsistent with those authorized by the Distributor Entity.
2. The Company and the Distributor shall take appropriate measures to ensure the protection of all private information provided by a consumer.
3. The Distributor and the Company shall be governed by the provisions of the Consumer Protection Act, 1986.
4. Supply or distribute goods with the knowledge that such goods/products are inferior in quality or have exceeded their validity or expiry period as specified by the manufacturer.
5. The Maximum Retail Price (MRP) shall be clearly and prominently displayed on the product packaging.
6. The Company/Distributor selling goods to a consumer shall issue a cash bill or invoice to such consumer in accordance with the provisions of the law for the time being in force.
