An analysis of the prevailing law



This research paper endeavors to define direct selling more succinctly by differentiating it from various other similar businesses that it is often confused with and how it can be more efficiently regulated. For this purpose, we consider only those businesses that engage with independent contractors.



The article deals with three aspects of direct selling business from legal perspective. Firstly, it deals with the major problems that plague the direct selling business, including confusion and overlapping laws while pointing out its benefits. Then the article goes on to emphasize how fraudulent business schemes, which look similar in marketing organization and compensation structure of the direct selling businesses, prevail and tarnish the reputation of genuine direct selling businesses. This is done by indulging in a detailed discussion on the various definitions of direct selling business and related activities that are prohibited by law. The author differentiates among the different concepts to bring clarity to the concept of direct selling business.

Thereafter, the author ventures into a discussion on the prevailing laws that tend to regulate direct selling and prohibit related concepts and the jurisdictional issues it brings up while explaining the problems that the enforcement agencies face.

The author finally stretches into a deliberation on the ideal regulator for direct selling businesses and why it is need of the hour.


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