1. "Consumer" means any person who—
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person but does not include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first-mentioned person but does not include a person who avails of such services for any commercial purposes;
Explanation.— For the purposes of this clause, “commercial purpose” does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment;
2. “Prospect” means a person to whom an offer or a proposal is made by the Direct Seller to join a Direct Selling opportunity;
3. “Direct Seller” means a person appointed or authorized, directly or indirectly, by a Direct Selling Entity through a legally enforceable written contract to undertake direct selling business on principal to principal basis.
4. “Network of Direct Selling” means a network of direct sellers at different levels of distribution, who may recruit or introduce or sponsor further levels of direct sellers, who they then support:
Explanation: “network of direct selling” shall mean any system of distribution or marketing adopted by a direct selling entity to undertake direct selling business and shall include the multi-level marketing method of distribution.
5. “Direct Selling” means marketing, distribution and sale of goods or providing of services as a part of a network of Direct Selling other than under a pyramid scheme,
6. “Direct Selling Entity”, means an entity, not being engaged in a pyramid scheme, which sells or offers to sell goods or services through a direct seller. Provided that “Direct Selling Entity” does not include any entity or business notified otherwise by the Government for the said purpose from time to time.
7. "Goods" means every kind of moveable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;
8. “Service” means service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service;
9. “Saleable” shall mean, with respect to goods and/or services, unused and marketable, which has not expired, and which is not seasonal, discontinued or special promotion goods and/or services;
10.“Cooling-off Period” means the duration of time counted from the date when the direct seller and the direct selling entity enter into an agreement under Clause 4 and ending with the date on which the contract is to be performed and within which the direct seller may repudiate the agreement without being subject to penalty for breach of contract;
11. “Pyramid Scheme” means: A multi-layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, as a result of enrolment, action or performance of additional subscribers to the scheme. The subscribers enrolling further subscriber(s) occupy the higher position and the enrolled subscriber(s) lower position, thus, with successive enrolments, they form a multi-layered network of subscribers.
12. “Remuneration System” means the system followed by the direct selling entity to compensate the direct seller which illustrates the mode of sharing of incentives, profits and commission, including financial and non-financial benefits, paid by the direct selling entity to the direct sellers, on a monthly or periodic or yearly basis or both, as the case may be.
13. “director”, in relation to a firm, means a partner in the firm.
14. "Upline"(Levels above you) refers to the person who recruited you into the MLM company (that person is your sponsor) along with the people in the same line in the levels above you. The upline is the person who brought you into the business and his/her upline is also part of yours. (Source: S4DS)
15. "Downline" (Levels below you) refers to the network members that the consultant has recruited or that have joined the organization after his/her enrollment. The downline represents income for the consultant, as they receive a percentage of their recruit’s sales. (Source: S4DS)
16. "Crossline" refers to the network members recruited by your uplines. (You and these crosslines constitute your sponsors' team. You are like brothers and sisters. Even though you belong to the same parent or upline, you share no business interest.)
Thank you for the resources. Your articles are very thoroughly written.
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