Prompted by the recent arrests of Amway executives in India, the World Forum for Direct Selling Association ( WFDSA) is planning to hold its first meeting in India with all stakeholders involved to address the industry's concerns. The association, which has CEOs of global direct selling companies on its board, will be seeking for a separate legislation for the industry in India.

"They are quite apprehensive about India's direct selling sector, but we do not want to give them the wrong message. It is the first time that they will be meeting in India as they want to support the industry here," said Chavi Hemanth, secretary general, Indian Direct Selling Association (IDSA).

The association, headquartered in USA, currently has 60 countries as its members, with CEOs of 30 global direct selling brands, including Amway, Oriflame, Avon, Herbalife and many others. As part of the agenda, the council is also planning to meet with the finance ministry, the consumer affairs ministry and the ministry of corporate affairs in India.

"This is to discuss the roadmap for the Indian direct selling industry as also to put up a case for a separate legislation for it," Hemanth said.

Three executives of multi-level marketing firm Amway, including CMD William S Pinckney, were arrested last month for an alleged violation of the Prize Chits and Money Circulation Schemes (Banning) Act.

While the direct selling industry in India is governed under the PCMC Act, industry associations have been pushing for new legislations and a regulatory body for the industry. ""While we will settle for amendments in the existing act, but we will prefer a new legislation completely,"" Hemanth said.

The IDSA has already recommended certain amendments to the guidelines under the Act and is currently in dialogue with the finance ministry. The direct selling industry in India employs 50 lakh distributors and recorded a turnover of around Rs 6,385 crore in 2011-12.


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