Is MLM Legal in India?
Government of India came with Direct selling guidelines in 2016. It is commonly known as direct selling guidelines 2016. This is a clear indication that MLMs are legal in India.
But we need to know in depth what makes an MLM Legal and what doesn’t. Below are examples of an MLM practice which may be illegal.
1. No physical product or service. Only hopes don’t sell!
2. Hidden owners. This can be a sure shot case of a potential fraud.
3. No refund policy at all. This should be there as per the Govt. of India guidelines.
4. No physical office of the parent company, listed in the country of operation can be dangerous.
5. Products are overpriced. Although this is not illegal, but usually such companies cannot sustain beyond a certain period of time.
So MLM is legal in India but being legal doesn’t mean any company running the MLM business is authentic. Be wise. Choose a company that follows the 4P Model of Network Marketing