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Rules and Guidelines Issued by Kerala Government for MLM Companies or Agencies

Following a number of MLM scams in Kerala in which a number of innocent people lost their hard-earned money.
The Kerala chief secretary started a probe into the matter and examined the actions of MLM agencies. After the probe guidelines were issued for MLM firms and Kerala becomes the first state to assign these guidelines. These guidelines are as follows:
  • All agencies working on MLM marketing or direct selling need to register with the government organization and have a license. 
  • The agencies are directed not to make money in any form from a member on registration.
  • These guidelines give customers the freedom to check the sample of products before purchasing.
  • The agencies are also directed to return the money within 30 days to a customer if the customer is not happy with the products.
  • The agencies need to give details to the customers about the organization and the products.
  • Clear sales records should be issued to the customers and permissions need to be taken in advance for selling in different areas.
  • The commission and other incentives paid to the members or sellers should depend on the quantity of the sold products.
  • The agents should have a mandatory photo identity card issued by a government agency. This ID card serves as a source of verification and is compulsory to carry.
  • All agencies practicing MLM business should have a special sell for customer support to solve any problems and provide customers with all the information related to products and facilities.
  • Agencies need to maintain all the records manually and electronically for this they should use software or a website.
  • This website is for providing all details related to the products and services, these websites should be regularly updated with the latest details related to the agency, products, and members.
  • To make the financial activities transparent the agencies need to take permission for all business activities.
These guidelines have been set after a series of MLM frauds worth crores of rupees in Kerala.
For the complete information of the guidelines issued by kerala government Click Here
Keywords : Guidelines Issued by Kerala Government for MLM Companies, Rules Issued by Kerala Government for MLM Agencies

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