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Union of India - Section

Section 13 in The Direct Selling Guidelines 2016

13. "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. This system, for every Direct Selling entity, shall:

a) Have no provision that a direct seller will receive remuneration from the recruitment to participate in such direct selling;b) ensure that direct sellers shall receive remuneration derived from the sale of goods or services;c) clearly disclose the method of calculation of remuneration.