The president of the Confederation of Direct-selling Distributors Association of India, P A Joseph, on Friday alleged that the police were targeting those who are trying to make a living out of multi-level marketing (MLM) schemes.

lawsuit“The state government must protect this sector which provides employment to around 15 lakh people in the state,” he said at a press conference here.

“It may be noted that earning an income through MLM is not illegal in the state. It is a successful business model in many countries and in some states also. But we are being targeted by the police in Kerala,” he said.

“In 2011, the state government had given an assurance that those who comply with  government-framed guidelines for MLM will not have to face any problem. But the government did not keep its word. The police are framing fake cases under the Prize Chit and Money Circulation (Banning) Scheme Act, 1978, against dealers and distributors,” he alleged.

He said that by arresting network marketing company Amway’s India chairman and chief executive William S Pinckney and two company directors, Kerala lost a chance to get foreign investment.

“It is learnt that Amway had plans to set up a production unit in India and they have decided to invest in Tamil Nadu,” he said.



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