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:
- 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.
- 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.
- 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.
- 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.
- Oriflame : Oriflame always tries to make a” Flame of
Innovation” by distributing skin care products and other electronic things
for both men and women.
- 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.
- 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.
- 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.
- 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.
- 4Life Trading India Ltd. : The thought of the company is to give benefits
of healthy life with a healthy income.
- 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.
- 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’.
- 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.
- 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 .
- 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.
- 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.
- 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.
- 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.
Challenges
|
Suggestions
|
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
|
|
Attrition
|
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.
|
Read more: http://networkingeye.com/2014/08/the-indian-direct-selling-association-idsa/#ixzz3BPXDxKDZ
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