The Centre has issued model guidelines for states to regulate direct selling and multi-level marketing businesses to protect consumers from Ponzi frauds.Food and Consumer Affairs Minister Ram Vilas Paswan today released the the Direct Selling Guidelines 2016' framework in New Delhi.<br/><br/>As per the guidelines, direct selling means marketing, distribution and sale of goods or providing of services as a part of network of direct selling.The guidelines bar direct selling companies from charging any entry fee from agents or compelling them to buy back unsold stocks.<br/><br/>These entities will have to enter into an agreement with direct sellers or agents, and give full refund or buy-back guarantee for goods and services sold to them.<br/><br/>Talking to reporters Consumer Affairs Secretary Hem Pande said States can make some change in the guidelines as per their localised requirements. He said, the guidelines are necessary for better growth of the direct selling business.<br/><br/>He said the guidelines will help protect consumers as direct sellers can now be identified, and goods exchanged. The guidelines also mandate direct sellers to constitute a grievance redressal committee to protect consumers right.