Rule 5 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 5(2) is the disclosure list for the website of a direct selling entity. It has eight clauses, (a) to (h), and clause (h) has a sub-list of eight items that must be given at the pre-purchase stage. The information has to be "clear and accessible" and "displayed prominently".
This article takes the rules as amended up to G.S.R. 454(E) dated 21 June 2023, which changed rule 3 only. Later amendments should be checked on the website of the Department of Consumer Affairs.
Every direct selling entity must display, in a clear and accessible manner and prominently, its registered name, registered address and branches, customer care and grievance officer contacts, a ticket number for each complaint, return, refund, warranty and delivery information, payment information, the total price with breakup and pre-purchase information in eight listed items. The list in rule 5(2) does not name directors or a remuneration system; rule 5(1)(d) separately asks for the entity's "management" to be on the website.
An entity unsure of its own website can start with a compliance advisory review.
The opening words
Rule 5(2) says: "Every direct selling entity shall provide the following information on its website in a clear and accessible manner, which shall be displayed prominently to its users". Three tests apply: the information is on the website, it is clear and accessible, and it is displayed prominently to users. A page buried several clicks deep, or one that needs a login, does not satisfy the words.
Clause by clause
| Clause | What must be displayed |
|---|---|
| (a) | Registered name of the direct selling entity |
| (b) | Registered address of the entity and of its branches |
| (c) | Contact details, including e-mail address, fax, land line and mobile numbers of its customer care and grievance redressal officers |
| (d) | A ticket number for each complaint lodged, through which the complainant can track its status |
| (e) | Information on return, refund, exchange, warranty and guarantee, delivery and shipment, modes of payment, grievance redressal mechanism and other information consumers may need to make informed decisions |
| (f) | Information on available payment methods, the security of those methods, fees or charges payable by users, the procedure to cancel regular payments, charge-back options if any and contact information of the relevant payment service provider |
| (g) | Total price of any goods or service in a single figure, with the breakup showing all compulsory and voluntary charges, including delivery, postage and handling, conveyance and the applicable tax |
| (h) | Correct and complete information at the pre-purchase stage so buyers can make informed decisions |
Clause (h): pre-purchase information
Clause (h) says the entity must "provide correct and complete information at pre-purchase stage to enable buyers to make informed purchase decisions". The information must, "in addition to the mandatory declarations to be provided under the Legal Metrology (Packaged Commodities) Rules, 2011", contain eight items:
- the name of purchaser and seller;
- description of goods or services;
- quantity of goods or services;
- the estimated delivery date;
- the process of refund;
- warranty of the goods;
- exchange or replacement of goods in case of being defective; and
- all contractual information required to be disclosed by or under any law for the time being in force.
An invented example: Harmony Home Care Ltd lists a water purifier on its site. At the pre-purchase stage the page must show a description, quantity, estimated delivery date, how a refund works, the warranty and the arrangement for exchange or replacement if the purifier is defective, together with the Legal Metrology declarations. If the purifier's total price is shown, it must be a single figure with the breakup under clause (g). Tax in the breakup is a matter for our GST guides.
Where the other information comes from
Rule 5(1)(d) separately requires the website to carry the documents in rule 4, the self-declaration, current contact information, the nodal officer and grievance redressal officer details, "its management, products, product information, price and grievance redressal mechanism for consumers". See rule 5(1). Rule 5(2) adds the consumer-facing items above. The two sub-rules should be read together so that nothing is missed.
Rule 5(6) separately requires the grievance redressal officer's current and updated name, contact details and designation to be on the website, and the details of the website to be printed on the product information sheet or pamphlet. See rule 5(3)-(9). Rule 5(11) lets a consumer ask, in writing after a purchase, for information on the direct seller concerned; see rule 5(10)-(17).
A comparison with the E-Commerce Rules
Clauses (a) to (g) of rule 5(2) follow the pattern of the disclosure lists in the E-Commerce Rules: legal name and addresses, a ticket number, return and refund information, payment information and total price with breakup. For a direct selling entity that also sells through an e-commerce platform, rule 9 applies the E-Commerce Rules to online sales; see rules 8-13. Compare the marketplace list in rule 5(3) of the E-Commerce Rules.
A disclosure checklist
- Registered name, registered address and branch addresses.
- E-mail, fax, landline and mobile numbers of customer care and of the grievance redressal officers.
- A ticket number system for every complaint.
- Pages on return, refund, exchange, warranty, guarantee, delivery and payment modes.
- Payment method security and fee information, with charge-back options and the payment service provider's contact details.
- Total price in a single figure with breakup.
- Eight pre-purchase items on each product page.
A review can compare a live website against this list.
Need help with direct selling website compliance?
If you want your website content checked item by item against rule 5(2) and rule 5(1)(d), our compliance advisory team can prepare a gap list and draft the missing pages.
Key takeaways
- Rule 5(2) has eight clauses (a) to (h), all displayed prominently and clearly.
- Each complaint needs a ticket number.
- The total price must be in a single figure with breakup of compulsory and voluntary charges.
- Clause (h) lists eight pre-purchase items, in addition to Legal Metrology declarations.
Read next
- Rule 5(1): obligations of the direct selling entity
- Rule 5(3)-(9): declarations, data, grievance officer and complaints
- Rule 4: records to be kept at the registered office
- Consumer Protection for Online Transactions
Disclaimer: Based on the rules, regulations and guidelines named above as published in the Gazette of India or on the CCPA website, with the amending notifications the article names (consulted on 3 October 2026). Later amendments, the Consumer Protection Act, 2019 provisions referred to, State rules and CCPA advisories should be checked. This article is general information, not legal advice; check the official text before acting.