08/05/2026
Addressing symptoms without tackling root causes is ineffective.
🇮🇳 India targets visible but overlooks critical legal, incentive, and enforcement issues. Increased raids and new regulations create only an appearance of progress without meaningful outcomes.
State authorities use identical terms such as “scheme,” “member,” and “agent” for both direct selling MLM and -MLM networks, despite key distinctions between these models. This lack of distinction blurs the line between legitimate business and financial crime, creating uncertainty for ethical companies and enabling fraudsters to re-emerge.
must act now by adopting clear, updated legal language to protect consumers and ethical businesses. Laws must urgently recognise product-based direct selling MLMs as retail, clearly define harmful MLMs, and equip EOWs and with precise terminology to enable real enforcement.
States must immediately adopt uniform nationwide definitions. Consistent laws and standards for direct selling and MLM are essential now to enable responsible companies to operate confidently and prevent fraudsters from exploiting weak jurisdictions.
Vague laws fuel fraud. Gaps between central intent and state language invite abuse and raise risks for companies seeking legal compliance and for families that depend on direct selling companies.
The Centre has acted. States must urgently translate this intent into enforceable, consistent laws and SOPs. Incomplete or inconsistent implementation is unacceptable.
Decisive action is required to ensure real protection and to close loopholes exploited by fraudsters.
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