"Direct Selling" means marketing, distribution and sale of goods or providing of services as a part of network of Direct Selling other than under a pyramid scheme:
Provided that such sale of goods or services occurs otherwise than through a "permanent retail location" to the consumers, generally in their houses or at their workplace or through explanation and demonstration of such goods and services at a particular place.
Explanation:- "Permanent retail location" includes such place, location or premises where the seller conducts sales in the ordinary course of business.
"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.
"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 a principal to principal basis. The 'written contract' includes e-contracts or digital contracts and the same shall be governed as per the provisions of the Information Technology Act, 2000 (Central Act 21 of 2000).
"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 in accordance with these Guidelines, and shall include the multi-level marketing method of distribution.