Special gazette issued for sellers involved in direct trading and network marketing

The Consumer Affairs Authority (CAA) has published a Gazette Extraordinary pertaining to all direct traders involved in the sale of multiple specified products and companies or entities engaged in network marketing.

The communiqué, dated 12 April 2023, was issued by CAA chairman Shantha Niriella.

Thereby, all direct traders of solar lighting systems, phones and accessories, furniture, cleaning agents, shoes, stationery, kitchen utensils and accessories, bed sheets and mattresses as well as readymade garments are required to register themselves with the Authority.

In addition, the companies or entities engaged in network marketing that offer, advertise, display, promote, undertake orders for sale or sell any goods by having discussions or demonstrations with the consumers are also mandated to do the same.

Direct traders, as specified in the gazette notification, are the individuals engaged in the sale of goods by way of mobile sale, by meeting customers and negotiating, exhibiting, demonstrating or by way of other similar activities.

Those who collect money by any other means other than by engaging in the act of selling goods and are involved in a scheme under Section 83C of the Banking Act No. 30 of 1988 are not considered direct traders.

As per the new gazette, direct traders and network marketers are required to register themselves as a trader with the CAA by submitting the business name, registration number or company registration number.

They are further required to issue a customer a receipt or bill, either in printed or electronic form, which contains the following details – 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 the consumer; and any other directions imposed under any written law.

Direct traders and network marketers have been informed to retain the duplicates of such receipts with them.

Consumer Affairs Authority - Gazette Extraordinary No 2327-35 by Adaderana Online on Scribd