Overview

The Company follows rules and regulations for direct selling to protect the interest of consumers. The policy aims to prevent unfair trade practices by direct sellers that could harm consumers.

Applicability

The policy applies to situations where direct sellers do not follow specific conditions that result in delisting from the Company.

Objective

The policy's objective is to ensure direct sellers follow fair practices to protect consumer interests.

Applicable Laws

Consumer Protection (Direct Selling) Rules, 2021

Consumer Protection Act, 2019

Consumer Protection (E-Commerce) Rules, 2020

Definition

Delisted Direct Sellers: Direct sellers whose authorization is cancelled/suspended by the Company's management.

Grounds for De-listing

Violation of code of conduct.

Fraudulent activities, false/misleading representations, or other forms of fraud, coercion, harassment, or unlawful means.

Mis-selling/bulk selling of products or services to consumers.

Use of fraudulent, coercive, unconscionable, or unlawful means for promoting direct selling business or selling goods/services.

Refusal to take back spurious goods or deficient services and refund consideration paid.

Charging entry/subscription fees.

Conviction, bankruptcy, unsound mind, or non-delivery of products to consumers within the specified time period.

Promoting pyramid schemes or money circulation schemes.

Unfair trade practices as defined in Consumer Protection Act, 2019.

Inoperative/working in the company for the last two years.

Holding a Direct selling code in another Direct selling entity/entities directly or indirectly.

Defaming the company's goodwill or reputation before the public, consumers, or other Direct selling entities.

Instigating other direct sellers against the company.

Visiting a consumer's premises without identity card and prior appointment or approval.

Providing literature to a prospect that has not been approved by the Company.

Making claims in pursuance of a sale that is not consistent with claims authorized by the Company.

Selling products through any E-commerce platform (like Amazon, Flipkart, Snapdeal, etc.)

Not taking necessary registration specified under the Direct Selling Rules, 2021

Impact of Delisting

Delisted Direct Seller shall be barred from selling or buying the Company's products.

De-listing Procedure

Upon receipt of the complaint or information or suo-motu observation, the Compliance Department shall initiate the enquiry proceedings to verify the facts and records related thereto.

The Compliance Department will prepare a detailed report along with all the necessary documents and evidence collected during the enquiry.

The report shall be submitted to the De-Listing Committee for its consideration.

The De-Listing Committee shall take a decision on the basis of the report submitted by the Compliance Department.

The decision of the De-Listing Committee shall be communicated to the concerned Direct Seller by a registered post with acknowledgement due (RPAD) or by e-mail or by any other mode of communication as may be decided by the Company.

The De-Listing Committee shall also have the power to suspend the Direct Seller pending the enquiry, subject to the approval of the Board of Directors.

If the decision of the De-Listing Committee is to de-list the Direct Seller, the same shall be communicated to the field team for necessary action.

If the decision of the De-Listing Committee is to suspend the Direct Seller, the same shall be communicated to the field team and the Direct Seller shall be suspended from selling the products of the Company till the final decision is taken by the Board of Directors.

The decision of the Board of Directors in this regard shall be final and binding on the Direct Seller.

Appeal Procedure

A Direct Seller who has been de-listed or suspended may appeal against such de-listing or suspension before the Grievance Redressal Committee within 15 days from the date of communication of the decision of the De-Listing Committee.

The Grievance Redressal Committee shall consider the appeal and decide the same within a period of 30 days from the date of receipt of the appeal.

The decision of the Grievance Redressal Committee shall be communicated to the Direct Seller by a registered post with acknowledgement due (RPAD) or by e-mail or by any other mode of communication as may be decided by the Company.

The decision of the Grievance Redressal Committee shall be final and binding on the Direct Seller.

Conclusion

Herboking Wellness Private Limited is committed to ensuring that its Direct Sellers follow fair and ethical practices in their business activities. The de-listing policy has been formulated to protect the interest of the consumer and safeguard the reputation of the Company. The policy clearly lays down the grounds for de-listing of Direct Sellers and the procedure for enquiry and appeal. It is hoped that the Direct Sellers of the Company will comply with the policy and contribute to the growth and success of the Company.