India may crack down on direct sales

Published on .

MUMBAI--The Indian government is on the verge of reversing its foreign investment policy in respect to direct sales marketers such as Amway Corp. Speculation is now afoot that India may go the China way and stop all pyramidal marketing.

For the time being, applications to enter the Indian market by U.S. companies Tupperware, Sunrider, Herbalife and Appco are on hold. Amway's existing operations are under scrutiny.

Regulators are concerned that direct sales marketers are using India more to source material rather than manufacturing products here.

Copyright March 1999, Crain Communications Inc.

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