India’s new Consumer Protection Rules have outlawed MLM pyramid scams. MLM firms have 90 days to comply with the new restrictions, which went into effect in 2021.

According to MoneyLife’s report; In accordance with the new regulations, direct selling organizations and sellers are prohibited from marketing a pyramid scheme or enrolling anyone in such a scheme or participating in such an arrangement, in any fashion whatsoever, in the guise of doing direct selling business. States have been instructed to “watch and supervise” the activities of MLM companies, which will be required to register with the government.

A registered office in India must now have at least one physical location, and corporations must self-certify that a direct selling company has adhered to the requirements regarding direct selling. Some other consumer protections, such as refunds and marketing, are also included in the new rules. To your surprise, if you’ve been fired from an MLM firm, that firm is compelled to disclose your name in an online list of those who were fired.

I believe that the Prize Chits and Money Circulation Schemes (Banning) Act of 1978 already makes MLM pyramid schemes illegal in India. India’s MLM regulations aren’t so much a legal issue as they are a lack of enforcement that allows unlawful schemes to thrive, like many other countries.

Whether Indian states would take up the slack and increase MLM pyramid scheme regulation is still up in the air with the passage of the new laws. Even if the new MLM laws have an impact.

I don’t think we’ll see a lot of “conventional” MLM company failures. The laws don’t appear to have any effect on the MLM crypto market.

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