The Rajasthan government has made prior registration or enrolment mandatory for all direct selling entities before they introduce any new product in the state market. A senior official stated that the consumer affairs department, serving as the nodal agency, is responsible for safeguarding consumers' rights. 'We cannot allow anyone to sell any product to consumers in the state without prior information about the product,' the official said.
Notification Details
According to a notification issued on June 18 by Deputy Commissioner (consumer affairs) Sanjay Jhala, companies must submit applications in the prescribed format at least 60 days before launching a product. Entities that fail to register or enrol within the stipulated period will face action under existing rules. The order emphasized that the move aims to ensure compliance, transparency, and consumer protection.
The notification further stated that if a direct selling entity fails to complete the registration or enrolment within the said period, the department will initiate action in accordance with the rules.
Understanding Direct Selling
Direct selling involves independent sellers marketing products directly to consumers without traditional retail outlets. This sector is regulated by central and state rules and has emerged as a significant source of micro-entrepreneurship and self-employment in Rajasthan, with more than 3.4 lakh people associated with it.
Legal Framework
Officials said the notification has been issued under Rule 11 of the Consumer Protection (Direct Selling) Rules, 2021, framed by the Centre under the Consumer Protection Act, 2019. The state has issued the Direct Selling Guidelines, 2025, to monitor and supervise the activities of direct selling companies and sellers.
As per the notification, the guidelines will help curb irregular practices and bring greater accountability to the direct selling ecosystem in Rajasthan while strengthening consumer grievance redress mechanisms.
