2949

Panaji, 24th February, 2022 (Phalguna 5, 1943)

SERIES I No. 48

Reg. No. RNP/GOA/32/2021-2023

RNI No. GOAENG/2002/6410

PUBLISHED BY AUTHORITY

Suggestions are welcomed on e-mail: dir–[email protected]

INDEX

Department

Notification

Subject

Pages

Civil Supplies &

Not.- DCS/CC/CPA-Pub/69/2021- Re-publication of notifications.

2949

Consumer Affairs 22/270

Director & ex. off.

Joint Secretary

GOVERNMENT OF GOA

Department of Civil Supplies &

Consumer Affairs

––

Notification

DCS/CC/CPA-Pub/69/2021-22/270

The Notifications issued by Ministry of

Consumer Affairs, Food and Public Distribution,

New Delhi and National Consumer Distributes

Redressal Commission listed below are re-

published for the general information of the

public;

1. The Consumer Protection (Jurisdiction of

the District Commission, the State Commission

and the National Commission) Rules, 2021 on

30-12-2021.

2. The Consumer Protection (Direct Selling)

Rules, 2021 on 28-12-2021 under provisions of

the Consumer Protection Act, 2019.

Sudhir S. Kerkar, Director, Civil Supplies &

Consumer Affairs & ex officio Joint Secretary.

Panaji, 21st Fabruary, 2022.

MINISTRY OF CONSUMER AFFAIRS, FOOD

AND PUBLIC DISTRIBUTION

(Department of Consumer Affairs)

New Delhi, the 28th December, 2021

Notification

G.S.R. 889(E).— In exercise of the powers

conferred by clause (zg) of sub-section (2) of

section 101 read with section 94 of the

Consumer Protection Act, 2019, the Central

Government hereby makes the following

rules, namely:—

1. Short title and commencement.— (1)

These rules may be called the Consumer

Protection (Direct Selling) Rules, 2021.

(2) They shall come into force on the date

of their publication in the Official Gazette.

2. Application.— (1) Save as otherwise

expressly provided, these rules shall apply

to––

(a) all goods and services bought or sold

through direct selling;

(b) all models of direct selling;

OFFICIAL GAZETTE — GOVT. OF GOA

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24TH FEBRUARY, 2022

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and services to consumers in India;

(d) all forms of unfair trade practices

across all models of direct selling:

Provided that existing direct selling entities

shall comply with the provisions of these

rules within ninety days from the date of

publication of these rules in the Official

Gazette;

(2) Notwithstanding anything contained in

sub-rule (1), these rules shall also apply to a

direct selling entity which is not established

in India, but offers goods or services to

consumers in India.

3. Definitions.— (1) In these rules, unless

the context otherwise requires,—

(a)

“Act”

means

the

Consumer

Protection Act, 2019 (35 of 2019);

(b) “cooling-off period” means a period

of time given to a participant to cancel the

agreement he has entered into for

participating in the direct selling business

without resulting in any breach of contract

or levy of penalty;

authorized by a direct selling entity

through a legally enforceable written

contract to undertake direct selling

business on principal to principal basis;

(d) “direct selling entity” means the

principal entity which sells or offers to sell

goods or services through direct sellers,

but does not include an entity which is

engaged in a Pyramid Scheme or money

circulation scheme;

(f) “money circulation scheme” means

the schemes defined in clause (c) of section

2 of the Prize Chits and Money Circulation

Schemes (Banning) Act, 1978 (43 of 1978);

(g) “mis-selling” means selling a product

or service by misrepresenting in order to

successfully complete a sale and includes

providing consumers with misleading

information about a product or service or

omitting key information about a product

or providing information that makes the

product appear to be something it is not;

(h) “prospect” means a person to whom

an offer or a proposal is made by a direct

seller to join a direct selling entity;

(i) “Pyramid Scheme” means a multi

layered network of subscribers to a scheme

formed by subscribers enrolling one or

more subscribers in order to receive any

benefit, directly or indirectly, as a result of

enrolment or action or performance of

additional subscribers to the scheme, in

which the subscribers enrolling further

subscribers occupy a higher position and

the enrolled subscribers a lower position,

resulting in a multi-layered network of

subscribers with successive enrolments:

(j) “saleable”, in relation to goods or

services, means unused and marketable

goods or services which have not expired,

and which are not seasonal, discontinued

or used for special promotion;

(k) “sensitive personal data” means the

sensitive data or information as specified

from time to time under section 43A of the

Information Technology Act, 2000 (21 of

2000);

(l) “State” includes a Union territory;

(2) Words and expressions used herein and

not defined, but defined in the Act shall have

the meanings respectively assigned to them

in the Act.

4. Mandatory maintenance of records.—

Every direct selling entity shall maintain at

its registered office, either manually or

electronically, all such documents as are

required under any law for the time being in

force, including the following documents or

records, as may be applicable, namely:—

(a) Certificate of Incorporation;

(b) Memorandum of Association and

Articles of Association;

Deduction and Collection Account Number;

(d) Goods and Services Tax registration;

(e) Goods and Services Tax Returns;

(f) Income Tax Returns;

OFFICIAL GAZETTE — GOVT. OF GOA

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24TH FEBRUARY, 2022

2951

(g) Balance Sheet, Audit Report and such

other relevant reports;

(h) Register of direct sellers;

(i) Certificate of Importer-Exporter code

(in case of imported goods)

(j) License issued under the Food Safety

and Standards Authority of India Act, 2006

(34 of 2006) for the purposes of manufacture

or sale of food items;

(k) License and Registration Certificate

issued under the Drugs and Cosmetics Act,

1940 (23 of 1940) for the purposes of

manufacture or sale of drugs, including

Ayurvedic, Siddha and Unani drugs and

Homoeopathic Medicines;

(l) Certificate of Registration of

Trademark.

5. Obligations of direct selling entity.— (1)

Every direct selling entity shall —

(a) if a company, be incorporated under

the Companies Act, 2013 (18 of 2013) or if

a partnership firm, be registered under the

Partnership Act, 1932 (9 of 1932) or if a

limited liability partnership, be registered

under the Limited Liability Partnership Act,

2008 (6 of 2009);

(b) have a minimum of one physical

location as its registered office within India;

it has complied with the provisions of these

rules and is not involved in any Pyramid

Scheme or money circulation scheme;

(d) maintain proper and updated website

with all relevant details of that entity,

including the documents or records

specified in rule 4, the self-declaration

specified in clause (c), contact information

which is current and updated, details of

its nodal officer, grievance redressal officer,

its management, products, product

information, price and grievance redressal

mechanism for consumers;

(e) own, hold or be the licensee of a

trademark, service mark or any other

identification mark which identifies that

entity with the goods or services to be sold

supplied,

but

shall

not

give

commissions, bonus or incentives on sale

of goods or services of which it is not the

owner, holder or licensee of trademark,

service mark or other identification marks;

(f)

obtain

all

applicable

trade

registrations and licenses, including

Permanent Account Number and Goods

and Services Tax Registration;

(g) get all information provided by it on

its website duly certified by a Company

Secretary.

Explanation.— For the purposes of this

clause, “Company Secretary” means a

person as defined in clause (c) of sub-

section (1) of section 2 of the Company

Secretaries Act, 1980 (56 of 1980);

(h) have a prior written contract with its

direct sellers in order to authorize them to

sell or offer to sell its goods or services,

and the terms of such agreement shall be

just, fair and equitable;

(i) ensure that all its direct sellers have

verified identities and physical addresses

and issue identity cards and documents

only to such direct sellers;

(j) create adequate safeguards to ensure

that goods and services offered by its direct

sellers conform to applicable laws;

(k) be liable for the grievances arising

out of the sale of goods or services by its

direct sellers.

(2) Every direct selling entity shall provide

the following information on its website in a

clear and accessible manner, which shall be

displayed prominently to its users, namely:—

(a) registered name of the direct selling

entity;

(b) registered address of the direct

selling entity and of its branches;

address, fax, land line and mobile numbers

of its customer care and grievance

redressal officers;

OFFICIAL GAZETTE — GOVT. OF GOA

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(d) a ticket number for each complaint

lodged through which the complainant can

track the status of the complaint;

(e) information relating to return, refund,

exchange, warranty and guarantee,

delivery and shipment, modes of payment,

grievance redressal mechanism and such

other information which may be required

by the consumers to make informed

decisions;

(f) information on available payment

methods, the security of those payment

methods, the fees or charges payable by

users, the procedure to cancel regular

payments under those methods, charge-

back options, if any, and the contact

information of the relevant payment service

provider;

(g) total price of any goods or service in

single figure, along with its break-up price

showing all compulsory and voluntary

charges, including delivery charges,

postage and handling charges, conveyance

charges and the applicable tax;

(h) provide correct and complete

information at pre-purchase stage to enable

buyers to make informed purchase

decisions, and such information shall, in

addition to the mandatory declarations to

be provided under the Legal Metrology

(Packaged Commodities) Rules, 2011,

contain

the

following

information,

namely:—

(i) the name of purchaser and seller;

(ii) description of goods or services;

(iii) quantity of goods or services;

(iv) the estimated delivery date of

goods or services;

(v) the process of refund;

(vi) warranty of the goods;

(vii) exchange or replacement of goods

in case of it being defective;

(viii) all contractual information

required to be disclosed by or under any

law for the time being in force.

(3) No direct selling entity shall adopt any

unfair trade practice in the course of its

business or otherwise, and shall abide by the

requirements specified in any law for the time

being in force.

(4) All products of a direct selling entity

shall comply with the declarations to be

made under the Legal Metrology Act, 2009

(1 of 2010).

(5) Every direct selling entity shall store

sensitive personal data within the jurisdiction

of India, in accordance with the applicable

law for the time being in force and shall take

appropriate steps to ensure protection of such

data provided by a consumer and also ensure

adequate safeguards to prevent access or

misuse of such data by any unauthorized

person.

(6) Every direct selling entity shall, having

regard to the number of grievances ordinarily

received by such entity from persons in India,

establish an adequate grievance redressal

mechanism and appoint one or more

grievance redressal officers for redressal of

consumers’ grievances and display the

current and updated name, contact details

including telephone number, email address

and designation of such officer on its website,

and the details of its website shall also be

prominently printed on the product

information sheet or pamphlet.

(7) Every direct selling entity shall ensure

that the grievance redressal officer referred

to in sub-rule (6) acknowledges the receipt

of any consumer complaint within forty-eight

working hours of receipt of such complaint

and redresses the complaint normally within

a period of one month from the date of receipt

of the complaint and in case of delay of more

than a month, reasons for the delay, and the

actions taken on the complaint, are informed

to the complainant in writing.

(8) Every direct selling entity shall appoint

a nodal officer who shall be responsible for

ensuring compliance with the provisions of

the Act and the rules made thereunder, and

to ensure compliance with any order, or

requisition, made in accordance with the

OFFICIAL GAZETTE — GOVT. OF GOA

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provisions of any other law for the time being

in force or the rules made thereunder.

(9) Every direct selling entity shall

establish a mechanism for filing of complaints

by consumers through its offices or branches

or direct sellers, either in person or through

post, telephone, e-mail or website.

(10) Every direct selling entity shall

maintain a record of all its direct sellers,

including their identity proof, address proof,

e-mail and such other contact information.

(11) Every direct selling entity shall, on the

request in writing made by a consumer after

the purchase of any goods or services, provide

him with the information regarding any direct

seller from whom such consumer has made

a purchase, and such information shall

include the name, address, e-mail, contact

number and any other information which is

necessary for making communication with

such direct seller for effective dispute

resolution.

(12) Every direct selling entity shall ensure

that the advertisements for marketing of

goods or services are consistent with the

actual characteristics, access and usage

conditions of such goods or services.

(13) No direct selling entity shall, directly

or indirectly, falsely represent itself as a

consumer and post reviews about its goods

or services or misrepresent the quality or

features of any of its goods or services.

(14) A direct selling entity which explicitly

or implicitly vouches for the authenticity of

the goods or services sold, or guarantees that

such goods or services are authentic, shall

bear the liability in any action related to the

authenticity of such goods or services.

(15) Notwithstanding the distribution

system adopted by it, a direct selling entity

shall monitor the practices adopted by its

direct sellers and ensure compliance with

these rules by means of legally binding

contract with such direct sellers.

(16) Every direct selling entity shall

maintain a record of relevant information

allowing for the identification of all direct

sellers who have been delisted by the direct

selling entity and such list shall be publicly

shared on its website.

(17) Every direct selling entity shall

become a partner in the convergence process

of the National Consumer Helpline of the

Central Government.

6. Obligations of direct seller.— (1) Every

direct seller shall—

(a) have a prior written contract with

the direct selling entity for undertaking sale

of, or offer to sell, any goods or services of

such entity;

(b) at the initiation of any sale

representation, truthfully and clearly

identify himself, disclose the identity of the

direct selling entity, the address of place of

business, the nature of goods or services

sold and the purpose of such solicitation to

the prospect;

providing

accurate

and

complete

information, demonstration of goods and

services, prices, credit terms, terms of

payment, return, exchange, refund policy,

return policy, terms of guarantee and after-

sale service;

(d) provide an order form to the

consumer at or prior to the time of the initial

sale, which shall identify the direct selling

entity and the direct seller and shall contain

the name, address, registration number or

enrollment number, identity proof and

contact number of the direct seller,

complete description of the goods or

services to be supplied, the country of

origin of the goods, the order date, the total

amount to be paid by the consumer, the

time and place for inspection of the sample

and delivery of goods, consumer’s rights

to cancel the order or to return the product

in saleable condition and avail full refund

on sums paid and complete details

regarding

the

complaint

redressal

mechanism of the direct selling entity;

(e) obtain goods and service tax

registration, Permanent Account Number

OFFICIAL GAZETTE — GOVT. OF GOA

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registration,

all

applicable

trade

registrations and licenses and comply with

the requirements of applicable laws, rules

and regulations for sale of a product;

(f) ensure that actual product delivered

to the buyer matches with the description

of the product given;

(g) take appropriate steps to ensure the

protection of all sensitive personal

information provided by the consumer in

accordance with the applicable laws for

the time being in force and ensure

adequate safeguards to prevent access to,

or misuse of, data by unauthorized persons.

(2) A direct seller shall not—

(a) visit a consumer’s premises without

identity card and prior appointment or

approval;

(b) provide any literature to a prospect,

which has not been approved by the direct

selling entity;

literature

sales

demonstration

equipment;

(d) in pursuance of a sale, make any

claim that is not consistent with claims

authorized by the direct selling entity.

7. Duties of direct selling entity and direct

seller.— Subject to the provisions of Chapter

VI of the Act, relating to Product Liability,

the following shall be the duties of direct

selling entity and direct seller, as may be

applicable, namely:—

(i) Every direct selling entity and every

direct seller shall ensure that—

(a) the terms of the offer are clear, so as

to enable the consumer to know the exact

nature of offer being made and the

commitment involved in placing any order;

(b) the presentations and other

representations used in direct selling shall

not contain any product description, claim,

illustration or other element which, directly

or by implication, is likely to mislead the

consumer;

the goods or services offered are accurate

and complete, particularly with regard to

price and, if applicable, to credit conditions,

terms of payment, cooling-off periods or

right to return, terms of guarantee, after-

sales service and delivery;

(d) the descriptions, claims, illustrations

or other elements relating to verifiable facts

are capable of substantiation;

(e) any misleading, deceptive or unfair

trade practices are not used;

(f) direct selling is not represented to

the consumer as being a form of market

research;

(g)

the

promotional

literature,

advertisement or mail contain the name

and address or telephone number of the

direct selling company, and include the

mobile number of the direct seller;

(h) direct selling shall not state or imply

that a guarantee, warranty or other

expression having substantially the same

meaning, offers to the consumer any rights

in additional to those provided by law,

when it does not;

(i) the terms of any guarantee or

warranty, including the name and address

of the guarantor, shall be easily available

to the consumer and limitations on

consumer rights or remedies, where

permitted by law, shall be clear and

conspicuous;

(j) the remedial action open to the

consumer shall be clearly set out in the

order form or other accompanying

literature provided with the goods or

service;

(k) the presentation of the offer does not

contain or refer to any testimonial,

endorsement or supportive documentation

unless it is genuine, verifiable and relevant;

(l) when after-sales service is offered,

details of the service are included in the

guarantee or stated elsewhere in the offer

OFFICIAL GAZETTE — GOVT. OF GOA

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and if the consumer accepts the offer,

information shall be given on how the

consumer can activate the service and

communicate with the service agent;

(m)

products,

including,

where

applicable, samples, are suitably packaged

for delivery to the consumer and for

possible return, in compliance with the

appropriate health and safety standards;

(n) unless otherwise stipulated in the

offer, orders shall be fulfilled within the

delivery date proposed to the consumer at

the time of purchase and the consumer

shall be informed of any undue delay as

soon as it becomes apparent or comes

within the knowledge of the direct selling

entity or the concerned direct seller;

(o) in cases of delay under clause (n),

any request for cancellation of the order

by the consumer shall be granted,

irrespective of whether the consumer has

been informed of the delay, and the deposit,

if any, shall be refunded as per the

cancellation terms proposed to the

consumer at the time of purchase, and if it

is not possible to prevent delivery, the

consumer shall be informed of the right to

return the product at the direct selling

company’s or the direct seller’s cost as per

the procedure for return of the goods

proposed to the consumer at the time of

purchase;

(p) right of return offered by that entity

shall be in writing;

(q) whether payment for the offer is on

an immediate sale or installment basis, the

price and terms of payment shall be clearly

stated in the offer together with the nature

of any additional charges such as postage,

handling and taxes and, whenever

possible, the amounts of such charges;

(r) in the case of sales by installment,

the credit terms, including the amount of

any deposit or payment on account, the

number, amount and periodicity of such

installments and the total price compared

with the immediate selling price, if any,

shall be clearly shown in the offer;

(s) any information needed by the

consumer to understand the cost, interest

and terms of any other form of credit is

provided either in the offer or when the

credit is offered;

(t) unless the duration of the offer and

the price are clearly stated in the offer,

prices shall be maintained for a reasonable

period of time;

(u) the procedure for payment and debt

collection shall be determined in writing

before any contract is signed and it shall

be such as to avoid undue inconvenience

to the consumer, making due allowance

for delays outside the consumer’s control;

(v) the provisions of the Legal Metrology

Act, 2009 (1 of 2010) and the rules framed

thereunder shall be followed.

(ii) A direct selling entity or direct seller

shall not—

(a) indulge in fraudulent activities or

sales and shall take reasonable steps to

ensure that participants do not indulge in

false or misleading representations or any

other form of fraud, coercion, harassment,

or unconscionable or unlawful means;

(b) engage in, or cause or permit, any

conduct that is misleading or likely to

mislead with regard to any material

particulars relating to its direct selling

business, or to the goods or services being

sold by itself or by the direct seller;

services to consumers;

(d) use, or cause or permit to be used,

any fraudulent, coercive, unconscionable

or unlawful means, or cause harassment,

for promoting its direct selling business, or

for sale of its goods or services;

(e) refuse to take back spurious goods or

deficient services and refund the

consideration paid for goods and services

provided;

(f) charge any entry fee or subscription

fee.

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(3) A direct selling entity and a direct seller

shall comply with the requirements of all

relevant laws, including payment of taxes and

deductions thereunder.

(4) A direct selling entity and a direct seller

shall not induce consumers to make a

purchase based upon the representation that

they can reduce or recover the price by

referring prospective customers to the direct

sellers for similar purchases.

8. Persons not to be engaged in the

business of direct selling.— No person who

is convicted, or bankrupt during the last five

years prior to his association with the

business of direct selling, or a person of

unsound mind, shall be engaged in the

business of direct selling.

Explanation.— For the purpose of this rule,

the term ‘Bankrupt’ shall have the same

meaning as assigned to it in clause (3) of

section 79 of the Insolvency and Bankruptcy

Code, 2016 (31 of 2016).

9. Application of e-commerce rules.— The

direct sellers as well as the direct selling

entities using e-commerce platforms for sale

shall comply with the requirements of the

Consumer Protection (e-Commerce) Rules,

2020.

10. Prohibition of Pyramid Scheme and

money circulation scheme.— No direct selling

entity or direct seller shall—

(a) promote a Pyramid Scheme or enroll

any person to such scheme or participate

in such arrangement in any manner

whatsoever in the garb of doing direct

selling business;

(b) participate in money circulation

scheme in the garb of doing direct selling

business.

11. Monitoring by State Government.— For

ensuring compliance of these rules by direct

selling entity and direct sellers, every State

Government shall set up a mechanism to

monitor or supervise the activities of direct

sellers and direct selling entity.

12. Inconsistencies in laws.— Where any

regulation made under the Reserve Bank of

India Act, 1934 (2 of 1934) is applicable to a

direct selling entity governed under these

rules, the provisions of such regulations shall

prevail over the provisions of these rules to

the extent of inconsistency.

13. Contravention of rules.— The provisions

of the Act shall apply for any contravention

of these rules.

[F. No. J-10/9/2018-CPU]

ANUPAM MISHRA, Jt. Secy.

———–––

MINISTRY OF CONSUMER AFFAIRS, FOOD

AND PUBLIC DISTRIBUTION

(Department of Consumer Affairs)

New Delhi, the 30th December, 2021

Notification

G.S.R. 912(E).— In exercise of the powers

conferred by provisos to sub-section (1) of

section 34, sub-clause (i) of clause (a) of sub-

section (1) of section 47 and sub-clause (i) of

clause (a) of sub-section (1) of section 58 read

with sub-clauses (o), (x) and (zc) of sub-

section (2) of section 101 of the Consumer

Protection Act, 2019 (35 of 2019), the Central

Government hereby makes the following

rules, namely:—

1. Short title and commencement.— (1)

These rules may be called the Consumer

Protection (Jurisdiction of the District

Commission, the State Commission and the

National Commission) Rules, 2021.

(2) They shall come into force on the date

of their publication in the official gazette.

2. Definitions.— (1) In these rules, unless

the context otherwise requires.-

(a) “Act” means the Consumer

Protection Act, 2019 (35 of 2019);

(b)

“District

Commission,

State

Commission and National Commission”

shall have the meaning assigned to them

in the Act;

OFFICIAL GAZETTE — GOVT. OF GOA

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(2) The words and expressions used

herein, but not defined, and defined in the

Act, shall have the same meaning assigned

to them in the Act.

3. Jurisdiction of District Commission.—

Subject to the other provisions of the Act and

in pursuance of proviso to sub-section (1) of

section 34 of the Act, the District Commission

shall have jurisdiction to entertain complaints

where the value of the goods or services paid

as consideration does not exceed fifty lakh

rupees.

4. Jurisdiction of State Commission.—

Subject to the other provisions of the Act and

in pursuance of proviso to sub-clause (i) of

clause (a) of sub-section (1) of section 47, the

State Commission shall have jurisdiction to

entertain complaints where the value of the

goods or services paid as consideration

exceeds fifty lakh but does not exceed two

crore rupees.

5. Jurisdiction of National Commission.—

Subject to the other provisions of the Act and

in pursuance of proviso to sub-clause (i) of

clause (a) of sub-section (1) of section 58, the

National Commission shall have jurisdiction

to entertain complaints where the value of

the goods or services paid as consideration,

exceeds two crore rupees.

[F. No. J-9/1/2020-CPU]

ANUPAM MISHRA, Jt. Secy.

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