Monday, 25 August 2014

The Indian Direct Selling Association Or Network Marketing/ MLM Association – IDSA

The Indian Direct Selling Association (IDSA), a body that governs 18 of the largest direct selling companies in India. Right now there is no law on mlm in India. Due to the absence of proper law to understand MLM, lot of direct sales companies are facing problems.  IDSA wanted the government to enact a law to prevent ponzi MLM/Direct Sales/Network Marketing companies from taking gullible people for a ride .
IDSA is an Amway‘s initiative and it is an autonomous, self regulatory body for the direct selling industry in India. The Association acts as an interface between the industry and policy – making bodies of the direct selling industry in India.

Guidelines For The MLM Companies:

Here are few IDSA guidelines for Direct Selling Company-:
  • The code contains sections entitled “Conduct for the Protection of Consumers”. ”Conduct between companies and Direct Sellers” and Conduct between Companies”. These three sections addresses the varying interactions across the spectrum of direct sales .The code is design to assist  the satisfaction and protection  of consumers, promote fair competition within the framework of free enterprises and enhance the public  image of Direct Selling.
  • This Code covers all of Indian Direct Selling Association (IDSA) members, their staff, contractors, distributors, agents and independent sales consultant /Direct Sellers, including full and associate members while engaged  Direct Selling, for the sale of either products or services.
  • A member of IDSA may terminate their and their obligations to adhere to the code by resigning formally from the IDSA giving fourteen days’ notice. This however does not negate the obligation by the members to fulfill obligations incurred during the period of their membership.
  • Obligations to comply with the code shall not cease until the last obligations to do anything required by the code has been performed.
  • Companies and Direct Sellers shall accomplish consumer order in a timely manner.
  • Companies shall provide their Direct Sellers a 30 days of cooling period which will entitle her/him to refund of any entry fee paid upon his resigning and returning all material’s received by him at the end of joining.
  • All companies are required to publicize IDSA‘s Code of Ethics to their Direct Sellers and consumers.
Indian Direct Selling Association (IDSA) Members:
  1. Amway India Enterprises : “Best To Believe” means the company that can fulfill each and every needs and can stand well on the customers requirement.Amway can be compared to a tree with several parts, each playing  a vital and healthy role.Amway is actively present in the formation of cosmetic to home-care products.
  2. Tupperware : Tupperware has made a pavement between people and profession. It’s a company  which manufactures and sell product like bottles ,tiffin’s ,bags, kitchen product etc. and also keeps in mind need of all ages.
  3. Avon : Avon is one of the most renowned company of beauty products in India.Beauty signifies women but Avon is also taking its step towards e-products which can be used by children and men also.For example – launch of bicycles.
  4. Tianjin Tianshi India Pvt. Ltd. : Tianjin is leading companies of IDSA .It provides healthy food supplements and also helps in development of  an eco-friendly environment.
  5. Oriflame : Oriflame always tries to make a” Flame of Innovation” by distributing skin care products and other electronic things for both men and women.
  6. Hindustan Unilever Network : Hindustan Unilever Network has covered more than 75% of today’s  daily need products either soaps or shampoo & others.Its branch are widely spreaded in each and every product.
  7. C.N.I Enterprises Pvt. Ltd. : C.N.I is a company with homogenous mixture of different products. The growth of company encourages the power of achievement.
  8. A.M.C Cookware Pvt. Ltd. : Only beauty products cannot lead the companies to a higher level and this is proved by A.M.C cookware .The company focuses its attention on the growth kitchen appliances which shows a different sign of innovation.
  9. Altos Enterprises Ltd. : Acne, pimples, wrinkles are major problem faced by today’s generation. So, Altos gives the best products to its customers by seeking nature’s best source.
  10. 4Life Trading India Ltd. : The thought of the company is to give benefits of healthy life with a healthy income.
  11. Jafra Ruchi Cosmetics India Pvt. Ltd. : The company aired in 1956 bringing new ideas to India concerning about finance and products. It also tried to bring enhancement in the field of beauty products by giving windows to girls in the world.
  12. Herbalife International India Pvt. Ltd. : The term’ Herbal’ means natural medicinal herbs .The company tries to bring use of natural as well as nutritional and healthy products to people’s lives, though serving the motto of ‘Seed To Feed’.
  13. Elken International India Pvt. Ltd. : Under ISO 9001 Certified company has a cycle chart of T3-Trusted To Care ,Trusted To Nurture ,Trusted To Lead.
  14. Modi Care Ltd. : Modi care is one of the oldest Indian MLM Company and it is also the most renowned company in IDSA. The company not only deals with home or cosmetics care products but also focuses upon agricultural products by providing good fertilizers which helps to bring healthy nutrition .
  15. Max Life Insurance Co.Ltd. : It is a private sector company which aids financial service to its customers.Being on top 4th position among private insurers it offers protection to 30 lakhs customers.
  16. K-Link Health Care Pvt. Ltd. : K-LINK creates a link between customers and shareholders ,shareholders and staffs, staffs and distributors. The company also tries to create awareness in the society.
  17. Glaze Trading India Ltd. : The company stands for “For You Forever”.  The Glaze Trading has made a reputed position in last 10 years by dealing with handful of cosmetic ,home ,dental and skin care.
  18. Daeshan Trading Pvt. Ltd. : The company says the people to enjoy their life with wholesome of nutrition and healthy life by creating financial stability.
Indian Direct Selling Association Membership:
Several companies can get membership in IDSA on the following basis-:
  • The methods of operations are fair and comply with the Model Code of Ethics and all relevant Indian legislation.
  • The company and its promoters should be sound financial standing .The Company must sign to abide by the Model Code Of Ethics.
  • The company should submit all the fees required by the Association.
  • The company must submit all required documents for scrutiny along with completed application form.
  • Company shall not use misleading, deceptive, or unfair recruiting practices in their interactions with prospective or direct sales.
  • All financial due shall be paid and any withholdings should be made in the commercial manner.
Challenges faced by Indian Direct Selling Association:
Indian Direct Selling Association catalyses’ change by working closely with government on policy issues, enhancing, efficiency and ushering in desired credibility, clarity & confidence in Direct Selling.
IDSA strives to create and further an environment conducive to the growth of Direct Selling industry in India, partnering industry and government alike through advisory and consultative activities.  There are few issues faced by IDSA.
High incidence of fraudulent companies
Stricter registration policy by Government
Absence of regulatory law/guidelines
Implementation of a single standard workable policy
Lack of training and orientation for leaders
Increase the number of leadership trainings
Low environmental clearances, political risk,
Implementation of a single standard workable policy
and poor logistics and distribution channels
Poor leader motivation
Income enhancement
Contagion effect of fraud companies on the
Implementation of a single standard workable policy
reputation of legitimate companies
Increase the number of trainings provided
Harassment by authorities
Implementation of a single standard workable policy
Compliance of special guidelines for MLM
Review the guidelines in terms of international MLM business
issued by Kerala State government
model and practices.


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