Frame Guidelines to Keep Check on Direct selling

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CHENNAI: In a bid to stop multi-level marketing businesses from cheating people by floating attractive but unviable schemes, the Madras High Court asked the State government to look beyond just prosecuting the offenders and to take preventive measures, including giving appropriate publicity among the public.

The first bench comprising Chief Justice S K Kaul and Justice T S Sivagnanam passed the orders on a PIL moved by V R Othisamy seeking direction to the government to frame appropriate guidelines to prevent and stop MLM in the State.

When the petition came up for hearing, the bench said, “The greed for extracting money without realising the pitfalls has resulted in public being misled into investing in MLM schemes.” Pyramid scheme have not proved to be sustainable.