Is MLM Legal in India? A Comprehensive Guide to MLM Laws

Discover the intricate web of MLM legality in India with our comprehensive guide. Gain valuable insights into the regulatory landscape, empowering entrepreneurs to navigate confidently and build successful ventures. Stay informed, stay ahead! 💼💡

1. IS
LEGALIN >
INDIA?

2. 1000

02

What is ?

MLM is a business model where individuals sell
products or services and earn commissions on
their own sales and the sales of their recruits.

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3. toed
03

Is legal in India?

Yes, MLM is legal in India if it follows the rules set
forth by the government. These rules include having a
product or service to sell, focusing on product sales,
and having a transparent compensation structure.

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04

How to identify
scams ?

Do your research on the company.
Be wary of companies that make unrealistic claims
about earnings.

Understand the compensation structure and make
sure it is based on product sales.

Avoid companies that require you to pay a large
upfront fee

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Successful
Companies in India

Amway
Oriflame
Tupperware

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Regulation of in India

The Prize Chits and Money Circulation (Banning) Act,
1978, prohibits pyramid schemes.

The Consumer Protection Act, 2019, protects consumers
from unfair trade practices.

The Direct Selling Guidelines, 2016, regulate the MLM
industry

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Tips for Joining an
Company

Do your research on the company.
Understand the compensation structure.
Be realistic about your expectations.

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How to Report an
Scam ?

If you think you have been the victim of an MLM
scam, you can report it to the Consumer Affairs
Department or the concerned police station

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