Rule 6 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 6 speaks to the individual direct seller. Sub-rule (1) lists seven things the seller must do, from having a written contract to protecting a consumer's personal information; sub-rule (2) lists four things the seller must not do, including visiting a home without an identity card and prior appointment.
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.
A direct seller must have a prior written contract with the direct selling entity, identify himself and the entity at the start of the sale, give an accurate and complete offer, hand over an order form with the particulars printed in the rule (including the right to cancel or return in saleable condition and a full refund), hold the necessary registrations, deliver what was described and protect sensitive personal information. He must not visit without an identity card and prior appointment, hand out unapproved literature, require purchase of literature or demonstration equipment, or make unauthorised claims.
Entities training their sellers on these points can use a compliance advisory review.
Rule 6(1): what the direct seller must do
Rule 6(1) says every direct seller shall:
- (a) have a prior written contract with the direct selling entity for undertaking sale of, or offer to sell, its goods or services;
- (b) at the initiation of any sale representation, truthfully and clearly identify himself, disclose the identity of the direct selling entity, the address of the place of business, the nature of goods or services sold and the purpose of the solicitation to the prospect;
- (c) make an offer providing accurate and complete information, demonstration of goods and services, prices, credit terms, terms of payment, return, exchange, refund policy, return policy, terms of guarantee and after-sale service;
- (d) provide an order form at or before the initial sale (below);
- (e) obtain goods and service tax registration, Permanent Account Number registration, all applicable trade registrations and licences, and comply with the requirements of applicable laws for the sale of a product;
- (f) ensure that the product actually delivered matches the description given; and
- (g) take appropriate steps to protect all sensitive personal information provided by the consumer in accordance with applicable laws, with adequate safeguards against access or misuse by unauthorised persons.
The "prospect" in clause (b) is defined in rule 3(1)(h) as a person to whom an offer or proposal is made by a direct seller to join a direct selling entity. The same word is used for the person being sold to, and clause (b) applies at the "initiation of any sale representation". For tax registrations in clause (e), see our GST guides and income-tax guides.
The order form in clause (d)
The order form must be provided "at or prior to the time of the initial sale". It "shall identify the direct selling entity and the direct seller" and must contain:
| Item | What the form must show |
|---|---|
| Direct seller details | Name, address, registration number or enrolment number, identity proof and contact number |
| Goods or services | Complete description of the goods or services to be supplied |
| Origin | The country of origin of the goods |
| Order date | The order date |
| Money | The total amount to be paid by the consumer |
| Inspection and delivery | The time and place for inspection of the sample and delivery of goods |
| Consumer's rights | The consumer's rights to cancel the order or to return the product in saleable condition and avail full refund on sums paid |
| Complaints | Complete details of the complaint redressal mechanism of the direct selling entity |
"Saleable" is defined in rule 3(1)(j) as unused and marketable goods or services that have not expired and are not seasonal, discontinued or used for special promotion; see rule 3. The right to a full refund therefore attaches to goods returned in that condition. The rule prints no time limit for exercising the right to cancel or return, so the entity's written terms and the offer made to the consumer should state it. If you are drafting an order form, it can be checked against clause (d).
An invented example: Neha, a direct seller for a kitchenware company, visits Ravi by appointment, shows her identity card, names the company and its address, demonstrates a pressure cooker, gives the price and return terms, and fills in an order form with every item above. The cooker delivered matches the description. Neha has met clauses (a) to (d) and (f).
Rule 6(2): what the direct seller must not do
A direct seller shall not:
- (a) visit a consumer's premises without an identity card and prior appointment or approval;
- (b) provide any literature to a prospect that has not been approved by the direct selling entity;
- (c) require a prospect to purchase any literature or sales demonstration equipment; or
- (d) in pursuance of a sale, make any claim not consistent with claims authorised by the direct selling entity.
Clause (a) ties in with the entity's duty in rule 5(1)(i) to issue identity cards only to verified sellers. Clause (c) protects new recruits from being made to buy materials as a condition of selling; compare the bar on entry or subscription fees in rule 7(ii)(f). Clause (d) keeps a seller within the entity's authorised claims, which the entity itself must keep consistent with the product under rule 5(12).
Do and do-not table
| Do | Do not |
|---|---|
| Hold a prior written contract | Visit without identity card and appointment or approval |
| Identify yourself and the entity at the start | Give literature the entity has not approved |
| Offer accurate and complete information | Require purchase of literature or demonstration equipment |
| Give the order form at or before the initial sale | Make claims not authorised by the entity |
| Deliver goods that match the description | |
| Protect sensitive personal information |
The entity's own duties for sellers, records and monitoring are in rule 5(10)-(17). The rest of the duties to consumers, shared by entity and seller, are in rule 7. A contravention is dealt with under the Act (rule 13); see rules 8-13.
Need help with direct selling compliance?
If you manage direct sellers and want your training material, order forms and seller contracts checked against rule 6, our compliance advisory team can help.
Key takeaways
- A direct seller needs a prior written contract and must identify himself and the entity at the start of the sale.
- The order form must carry the details listed in rule 6(1)(d), including the right to cancel or return and avail a full refund.
- No visit without identity card and prior appointment or approval; no unapproved literature; no compulsory purchase of literature or equipment; no unauthorised claims.
Read next
- Rule 5(1): obligations of the direct selling entity
- Rule 7: duties towards consumers, offers, returns and instalments
- Rules 8-13: barred persons, pyramid schemes, State monitoring
- Consumer Protection Compliance for Businesses
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.