A. Obligations of Distributor / Direct Seller

1. The Distributor / Direct Seller shall:

     1.1 Carry a valid identity card at all times.

     1.2 Not visit a customer’s premises without prior appointment or approval.

2. At the initiation of any sales representation, the Distributor / Direct Seller shall, without being asked:

     2.1 Truthfully and clearly identify themselves;

     2.2 Disclose the identity of the Direct Selling / Product Selling Entity;

     2.3 Clearly explain the nature of goods or services offered;

     2.4 State the purpose of solicitation.

3. The Distributor / Direct Seller shall provide accurate, complete, and honest information regarding:

     3.1 Goods or services offered;

     3.2 Prices, payment terms, credit terms (if any);

     3.3 Return, refund and cancellation policies;

     3.4 Warranty, guarantee, and after-sales service.

4. At the time of sale, the Distributor / Direct Seller shall provide the consumer with the following information:

     4.1 Name, address, registration/enrollment number, identity proof, and contact details of the Distributor / Direct Seller and the Company;

     4.2 Description of the goods or services supplied;

     4.3 Detailed explanation of the company’s return and refund policy before completion of the transaction;

     4.4 Order date, total amount payable, along with bill and receipt;

     4.5 Time and place for inspection (if applicable) and delivery of goods;

     4.6 Consumer’s right to cancel the order and/or return the product in salable condition (seal/protection unbroken) with full refund;

     4.7 Details of the grievance/complaint reparation mechanism.

5. The Distributor / Direct Seller shall:

     5.1 Maintain proper books of accounts relating to goods sold, in accordance with applicable law.

6. The Distributor / Direct Seller shall not:

     6.1 Use misleading, deceptive, false, or unfair trade practices;

     6.2 Use misleading or unfair recruiting practices, including misrepresentation of earnings, sales, or benefits;

     6.3 Make unverifiable claims or promises that cannot be fulfilled;

     6.4 Falsely present advantages of direct/product selling;

     6.5 Omit or misrepresent facts relating to the business model, remuneration system, agreements, or products;

     6.6 Require or encourage purchase of goods/services in unreasonable quantities;

     6.7 Require purchase of literature, training materials, or sales demonstration equipment as a condition to participate;

     6.7 Create cross-line activities within the company network.

7. Taxation:

     7.1 The Company may declare incentives/benefits inclusive of applicable taxes.

     7.2 The Distributor / Direct Seller shall be solely responsible for payment of GST or any other applicable tax, if required by law.

B. Obligations of Direct Selling / Product Selling Entity (Company) towards Distributors

1. The Company shall:

     1.1 Conduct a mandatory orientation/training session for all prospective Distributors, covering business operations, products, remuneration system, and realistic earning expectations.

2. Maintain proper records (manual or electronic) of:

     2.1 Goods and services;

     2.2 Contracts, pricing, income plans;

     2.3 Distributor enrollment, termination, active status, earnings, and commissions.

3. Maintain a Register of Distributors, including:

     3.1 Verified proof of identity;

     3.2 Proof of address;

     3.3 PAN and other statutory details.

4. Maintain a proper and updated website containing:

     4.1 Company details, management information, and contact details;

     4.2 Product details, pricing, quality certifications;

     4.3 Complete income plan;

     4.4 Distributor agreement terms;

     4.5 Consumer and Distributor grievance reparation mechanism.

5. Provide distributors with periodic statements including:

     5.1 Sales, purchases, earnings, commissions, bonuses;

     5.2 Any deductions or withholdings in a commercially reasonable manner.

6. Monitor the monthly purchase values of distributors and:

     6.1 Inform Distributors when statutory tax thresholds (GST/VAT, as applicable) are crossed.

7. The Company shall not:

     7.1 Compel Distributors to purchase goods beyond reasonable resale or consumption capacity;

     7.2 Use misleading or unfair recruiting practices;

     7.3 Make false, unverifiable, or deceptive representations;

     7.4 Use fraud, coercion, harassment, or unlawful means;

     7.5 Charge entry fees, renewal fees, or mandatory subscriptions;

     7.6 Provide incentives for mere recruitment;

     7.7 Require purchase of sales kits, literature, or equipment to participate.

8. The Company shall be responsible for ensuring compliance with these obligations by all members of its network, whether appointed directly or indirectly.

C. Obligations towards Consumers

1. Upon purchase, the Company / Distributor shall provide:

     1.1 Name of purchaser and seller;

     1.2 Delivery date of goods or services;

     1.3 Return and refund procedures;

     1.4 Warranty and replacement/exchange details for defective goods.

2. No Distributor shall make claims inconsistent with those authorized by the Company.

3. The Company and Distributor shall:

     3.1 Protect consumer personal and private information;

     3.2 Follow provisions of the Consumer Protection Act, 1986 (and applicable amendments).

4. The Company / Distributor shall not:

     4.1 Supply goods known to be inferior, expired, or beyond validity period.

5. The MRP shall be clearly and visibly displayed on all product packages.

6. A proper cash bill/invoice shall be issued to the consumer as per applicable law.