Direct-selling software compliance questions should start with the business model, product sales, seller agreements and customer protections. Software can support controls and evidence, but it cannot approve an unlawful arrangement. Have qualified Indian advisers review the proposed operation and translate their conclusions into written system requirements.
This guide is a preparation checklist for that review, not a legal opinion. The applicable obligations depend on the products, sales channels, jurisdictions and actual conduct of the business.
What is the basis of participation and remuneration?
Give advisers the complete proposed policy, including joining conditions, product sales, eligibility and every type of payment or benefit. Explain what happens in practice, not only how the plan is described in promotional material.
The 2021 Direct Selling Rules prohibit pyramid and money-circulation schemes. The 2023 amendment links its network-of-sellers definition to consideration from sales of goods or services. A technical configuration is not proof that an arrangement meets these requirements.
Direct-selling software compliance review questions
| Review area | Question for the accountable adviser or owner |
|---|---|
| Products | What registrations, information, claims and sales restrictions apply? |
| Seller onboarding | Which agreements, verification steps and disclosures are required? |
| Customer journey | How must pricing, ordering, returns and complaints be handled? |
| Compensation | Which events may create an entitlement, and what must be excluded? |
| Records and privacy | What must be retained, who may access it and when may it be removed? |
| Other obligations | Which tax, payment, e-commerce or sector-specific requirements apply? |
Convert advice into a traceable specification
For each approved requirement, record the relevant workflow, system behaviour, owner and test evidence. Developers need instructions such as which record must exist before an action can proceed, rather than a broad request to “make it compliant.”
Keep legal conclusions and technical interpretations distinct. If a requirement is unclear, resolve it with the responsible adviser before implementation. Do not let a default setting silently decide a business obligation.
Review public and seller-facing claims
Identify who approves product descriptions, income-related statements and onboarding messages. Keep versions of approved material and a process for correcting inaccurate information. A software template should not introduce claims the business cannot substantiate.
Check what users see before they commit to an order or agreement. Important conditions should be understandable and accessible in the relevant journey, not buried in an unrelated dashboard screen.
Control configuration after launch
A reviewed policy can be undermined by a later settings change. Restrict who may alter calculation rules, joining conditions and consumer-facing terms. Require appropriate review and preserve effective dates.
Retest affected workflows after a change. Keep a record of approval and the evidence used for release. Assign an owner to monitor changes in applicable requirements and translate them into operational updates.
Separate technical acceptance from legal assessment
A successful software test can show that a required control works. It cannot establish that every business practice complies with the law. Record the scope and limitations of each review so a technical sign-off is not presented as regulatory endorsement.
Use the Department of Consumer Affairs’ acts and rules index as a starting point for checking current official material. Have advisers verify the authoritative documents and any changes relevant to the launch.
Common questions
Does buying established software make the business legal?
No. The actual model, products, communications and conduct require assessment independently of the software vendor.
Can the developer provide all required legal advice?
Do not assume that. Engage appropriately qualified advisers and give the development team their approved requirements.
Is the review only needed before launch?
No. Policy changes, new products, new channels and changes in applicable rules can require further review.
Bring approved requirements to development
Once the responsible advisers have reviewed the operation, discuss the resulting controls with Solutions1313’s direct-selling software team. Ask for traceable implementation and test evidence.
Turn approved advice into the software requirements. Then specify the records and audit trails needed to demonstrate the controls.
