What the Kerala government is actually attempting to regulate in its 'guidelines' for so-called 'direct selling,' is only peddling with a fancy name.
However, peddling (i.e. the traditional commercial practice of independent small businessmen/women going door to door, retailing goods directly to the public for a straight profit , or non-salaried commission agents going door to door, retailing goods directly to the public on behalf of another business, for a percentage of an overall profit ) has effectively died out.
As has been previously pointed out on Corporate Frauds Watch, many years ago, it was possible to scrape a living as a peddler, provided what was being peddled was of good value and the peddler didn't have too much competition. Today, in the USA and Europe, the average person's experience is that traditional, door-to-door sellers simply do not exist. The reasons for this being that supermarkets, and the Internet, offer an endless variety of choice, and quality, at prices which have effectively destroyed all traditional retail competitors, whilst few people are at home during the day and most people do not wish to receive unsolicited callers during the evening.
Thus, the Kerala government has drawn up 'guidelines' to regulate a traditional commercial practice which (at worst) no longer exists, or (at best) is on the point of vanishing. Self-evidently, what is now commonly referred to as 'direct selling,' most-certainly does not fit the description of traditional peddling contained in the Kerala government's 'guidelines.' Indeed, Corporate Frauds Watch challenges any so-called 'direct selling' company to produce the audited accounts (particularly, income-tax receipts) of a significant group of its so-called 'direct sellers' which would prove that these latter-day peddlers (with fancy names) have made net-profits by regularly retailing goods, and/or services, directly to the public.
In the adult world of quantifiable reality, the tax-record proves beyond all reasonable doubt that there are gangs of corporate thieves whose wealthy bosses have steadfastly pretended to be the sponsors of lawful direct selling schemes, but who have actually been operating, and hiding the results of, illegal money circulation schemes and secondary advanced fee frauds. These racketeers have recruited endless-chains of constantly-churning, ill-informed, insolvent victims whom they have arbitrarily defined as 'direct sellers', but who have actually been induced to hand over their money in exchange for effectively-unsaleable wampum, and to try to recruit their friends and relations to perpetuate the same economically-unviable scheme, in the false belief that this is a proven, and legal, plan to achieve 'total financial freedom.'
Based on their largely-irrelevant content, the persons who drew up these so-called 'direct selling guidelines' for the Kerala government, have demonstrated that they remain at a pitifully low-level of understanding of how pernicious 'MLM income opportunity' frauds have functioned.
David Brear (copyright 2011)