The FSSAI notification dated 16 January 2017 outlines the draft guidelines for operations of direct selling FBOs. The Food Authority has taken the decision to issue these draft guidelines in the 22nd Meeting of the Food Authority which took place on 20 December 2016. The FSSAI has also asked for comments and suggestions on these draft guidelines which must reach the FSSAI by 2 February 2017.
The FSSAI has defined the terms “direct selling,’ direct selling entity and direct selling FBO. In brief direct selling is the marketing, distribution and sale of good or provision of services other than through the pyramid scheme and should take place from a retail location that is not permanent. The goods are generally taken to the consumers’ houses or workplaces or a particular place where sale takes places through explanation and demonstration. A direct selling FBO is therefore someone who sells a food product directly to consumers through a network of their agents, representatives, consultants, direct distributors, etc. Therefore the direct selling FBO’s business can be termed as that of a
- Manufacturer
- Importer
- Distributor
- Storage
- Marketer
- Retailer
- Supplier
Methods of direct sale include
- Sale at manufacturers’ plant of head office
- House to house sale
- Sale by mail order
- Sale by manufacturers’ / agents’ retail store
- Sale through electronic devices of mechanical means like vending machines
Registration and License requirements for Direct Selling FBO
- The FSSAI license will be according to the businesses mentioned above
- For businesses in more than one state the direct selling FBO will take one license from Central Licensing Authority for their entire network of agents/ salesman etc. and one State license if the area of operation is confined to one state
- The complete details of the agents, salesman should be provided by FBO so unique ID can be generated by the Licensing Authority. These details will also be annexed with the license. The generated Unique ID will be mentioned on the identity card along with License number. The details of the License shall be updated by direct selling FBO on a quarterly basis.
- The License does not have to be displayed or printed on the foods manufactured or imported by the Direct Selling FBO
- The Direct Selling FBO will maintain all records either manually or electronically of all their business dealing as well as details of their products and services, terms of contract, price, income, details of direct selling Agents and maintain a Register of Direct Sellers, including proof of identity and PAN details
Liability and other requirements
- Direct Selling FBOs need to give an undertaking that their agents will comply with FSS Act, Rules and Regulations.
- All details provided by Agents must be true and correct and if it is not found to be such then they must remove them from the License.
- Direct Selling FBOs and Agents will be liable for sampling of food.
- The responsibility of compliance will be with the Direct Selling FBO
- Agents selling products through retail store can do so only from a licensed premises
- Direct Selling FBO must keep a proper book of accounts on goods sold in a form that is applicable in law
- Direct Selling FBO must monitor and control the practices or methods adopted by their agents.
Consumer complaints
Every Direct Selling FBO must constitute a Grievance Redressal Cell comprising three officers of the Direct Selling FBO to look into consumer complaints in a time bound manner. Complaints can be over email, phone, website, post or walk-in and should be recorded and tracked and redressed within seven working days.
Responsibility of recall
If recall orders are issued under the FSSA then the Direct Selling FBO and agents must immediately comply if directed to do so by the FSSAI. The recall details must be forwarded to FSSAI.
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