NEW DELHI: After packaged food industry and street food vendors, the food safety regulator is set to tighten the noose around direct selling companies and agents.
The Food Safety and Standards Authority of India (FSSAI) has issued draft guidelines proposing to make it mandatory for such companies to seek regulatory nod before launching or selling food products in India.
"It is necessary to ensure that direct selling food business operators have the mechanism to help consumers on issues related to safe and wholesome food," the draft guidelines say.
Direct selling food business operators will also need to update approvals on a quarterly basis, along with details and identities of the sales force. According to the draft guidelines, the direct selling food business operators would have to maintain proper records, either manually or electronically, of their business dealings, with complete details of their products, services, terms of contract, prices, income plan and details of direct selling agents among others. Companies will need to take undertakings of their agents and be liable to sampling and inspections by authorities.
The industry which includes players such as Amway, Avon, Herbalife and Oriflame is pegged at Rs 8,000 crore annually. The proposed guidelines also want direct selling food business operators to spell out clear mechanisms for consumer grievance redressal and product recalls. FSSAI has sought comments from stakeholders by February 2 on the draft guidelines.
In September last year, the ministry of consumer affairs had issued regulatory guidelines on direct selling, creating a distinction between legitimate direct selling and fraudulent schemes.
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