Network marketing businesses required to register with CAA

The Consumer Affairs Authority has issued regulations directing those involved in networking marketing to register with the Authority for an annual fee of Rs 25,000.

A Gazette notification to this effect has been issued by the Chairman of the CAA Shantha Niriella.

Those registering would have to provide a Business Name, Registration Number or the Company Registration Number etc.

They would required to issue the  customer a receipt or bill in printed or electronic form containing the following details and the  duplicate of such receipts should be retained. 

Receipt or bill number,  nature of the transaction, whether retail or wholesale ;  date of transaction ;type of goods sold ; quantity of goods sold ; value of a unit of the goods sold ; total value of the goods sold ; batch number, if any; guarantee number, if any ;name and address of consumer ; and any other directions imposed under any written law in respect of issue of receipts by a trader.

The regulations say that when promoting and advertising the trade or requesting to purchase goods it should include in such promotion or advertisement, the business or trade name, name, address, telephone number and email address of the trader, or other person, nature of the product, instructions for the use of such product, guarantee period, selling price, credit payments or payment in installments, directions on easy payments, directions on guarantees and after sales services.

Also the person or company registering should ensure that  promoting and advertising the trade use any statement, address or details of address, demonstration, display, explanation, telephone number, email address, document, picture or video which deceits or misleads a consumer.

If an indexed form is given to a consumer before sale, conditions on a guarantee or a warrant, details and limits on after sale services, name and address of the guarantor, effective period of the guarantee, remedial measures for a consumer or other person, full name, permanent address, telephone number and email address of the trader engaged in network marketing, include in such indexed form clearly as readable and understandable.

Under the regulations they should also ensure the right of a consumer or other person to cancel any order made within seven days from such order.