Direct selling businesses are in dire need of effective legal regulation. This paper is eye-opening research to document the grey clouds that hinder the growth of this mode of commerce in India. The legal regime needs to be streamlined, and an appropriate regulator must be assigned. A critical examination of the direct selling industry's challenges is undertaken here, including the definitions related to it (the primary cause of concern), followed by the inept Direct Selling Guidelines issued in 2016 by the Ministry of Consumer Affairs. Suggestions related to changes in law and regulation have also been provided.