Frequently Asked Questions

Frequently Asked Questions (FAQs)

1. What is FDSA?

The Federation of Direct Selling Associations (FDSA) is a non-profitable and non-Government organization registered under the Society Act in Hyderabad. It serves as a self-regulatory body representing genuine direct selling companies in India, committed to promoting ethical business practices and ensuring compliance with legal framework.

2. What is the Mission & Vision of FDSA?

Mission:

  • Advocating Government: Representing the voice of genuine direct selling companies to form an appropriate legislative framework.
  • Awareness Campaigning: Conducting regional awareness programs and managing social media for accurate content dissemination.
  • Abide by Vigilant & Surveillance: Monitoring direct selling companies and reporting unethical practices to relevant authorities.

Vision: By collaboration with all stakeholders of the direct selling industry to build a transparent, ethical, and growth-oriented business environment that supports India’s journey towards becoming a $5 trillion economy by 2047.

3. Is FDSA a government authority?

No. FDSA is an independent, industry-led self-regulatory body. While it co-ordinates with government bodies to align with legal framework.

4. How does FDSA benefit direct sellers and consumers?

  • Educational resources on rights and responsibilities with the best practices.
  • Ethical codes of conduct.
  • A platform for grievance redressal for member companies.
  • Information to identify and avoid fraudulent schemes.

5. How can I verify if a company is a member of FDSA?

You can check the updated list of member companies on the FDSA website under the "Membership" section.

6. How do I file a complaint through FDSA?

If your issue is with a member company, you can submit a complaint online through the "Grievance" section on the FDSA website, providing necessary documentation. For non-member companies, you may consider approaching the Consumer redressal authority or relevant government authority.

https://www.fdsaindia.org/grievance.aspx

7. What are my rights as a direct seller under FDSA principles?

  • Transparent and fair contractual agreements.
  • Clarity in commission structures and payout schedules.
  • Ethical and non-exploitative practices.
  • The ability to raise concerns or grievances without retaliation.

8. Are income guarantees legal in direct selling?

No. Under Indian law and FDSA standards, income guarantees are not permitted. All earnings must be based on genuine product sales volume and not on speculative claims.

9. What distinguishes a pyramid scheme from a legitimate direct selling business?

A legitimate direct selling business focuses on genuine product sales to end consumers and transparent compensation for sales but not recruitment. In contrast, pyramid schemes emphasize only on recruitment on the basis of head counts of new recruitment and are illegal under Indian law.

10. Can I sell direct selling products online?

No, Products offered by direct selling companies cannot be listed or sold on third-party marketplaces or e-commerce platforms.

All product promotions and sales must be conducted only through the company’s official website, using unique referral or invitation links provided to registered direct sellers. This ensures compliance with the core principles of direct selling, maintains authenticity, and protects both consumers and the business model.

11. Does FDSA have the authority to take legal action against companies?

No, If FDSA receives a complaint regarding any direct selling company or seller involved in unlawful practices or malpractices, the matter will be duly reviewed and, if found valid, escalated to the relevant authorities for appropriate action.

12. Does FDSA offer training or support to distributors?

While FDSA conducts awareness programs and provides educational resources, it does not have a dedicated "Distributors" section on its website. Distributors are encouraged to participate in FDSA-organized events and stay informed through official communications.

13. Is there a fee to access FDSA services as a distributor?

No. Distributors can access FDSA's educational resources and grievance redressal mechanisms free of charge. Membership fees are applicable only to companies.

14. How can I become a successful direct seller?

  • Selling products through network of sellers.
  • Building business by selling products on regular basis.
  • Continuous learning and adherence to ethical practices.
  • Avoiding exaggerated or misleading claims. Keeping away from mal-practices.

Success in direct selling cannot be achieved overnight, it’s a profession which requires a long-term commitment, determination and hard work with rightful approach.

15. How can I verify if a direct selling company is operating legally?

  • Offers products value for money.
  • Pays income based on product sales volume, not recruitment.
  • Must have transparent return/refund policies.
  • Complies with the Direct Selling Rules, 2021.

16. What are the Direct Selling Rules, 2021?

Issued by the Government of India under the Consumer Protection Act, 2019, the Direct Selling Rules, 2021 define the legal framework for direct selling companies and prohibit fraudulent schemes such as money circulation or pyramid models.

Download the Rules PDF

17. How does FDSA support consumer protection?

  • Member companies follow fair marketing and refund practices.
  • Consumers have access to transparent product information.
  • Complaints from consumers and distributors are addressed appropriately.

18. How can I stay updated with FDSA news and alerts?

Follow FDSA on social media platforms and subscribe to the newsletter for regular updates on regulatory changes, training opportunities, awareness campaigns, and industry news.

Disclaimer: This FAQ is intended for general guidance. For specific legal concerns or disputes, consult a legal expert or consumer authority.