CCPA Penalises Oriens Global Marketing Pvt Ltd for Misleading Disclosures and Violations of Direct Selling Rules

Background and Overview

The Central Consumer Protection Authority (CCPA) initiated suo motu proceedings against Oriens Global Marketing Pvt. Ltd., a direct selling entity, for alleged non-compliance with the Consumer Protection (Direct Selling) Rules, 2021. The proceedings were triggered by the company's failure to publish and maintain mandatory information on its website, including statutory records, product details, and regulatory certifications as required under Rule 4 and Rule 5 of the Consumer Protection (Direct Selling) Rules, 2021.

The case culminated in the imposition of a monetary penalty of ₹1,00,000 on the company under Section 21(2) of the Consumer Protection Act, 2019, following a finding that the company had engaged in dissemination of misleading information and unfair trade practices prejudicial to the interests of consumers as a class.

Preliminary Inquiry and Show Cause Notice

Initial Findings

Exercising its statutory powers under Sections 18 and 19 of the Consumer Protection Act, 2019, the CCPA conducted a preliminary inquiry into the company's website compliance. The inquiry identified the following deficiencies:

  • The company had not maintained a register of direct sellers on its website as mandated under Rule 4(h) of the Consumer Protection (Direct Selling) Rules, 2021
  • Adequate and complete product information had not been furnished to enable consumers to make informed purchasing decisions
  • Website content had not been duly certified by the Company Secretary as required under the Rules
  • No record or publicly accessible list of delisted direct sellers was maintained or displayed
  • The FSSAI licence number appearing on the company's website could not be verified against the FSSAI database

Show Cause Notice

Following the preliminary inquiry, the CCPA issued a show cause notice dated 18 June 2024, directing Oriens Global Marketing Pvt. Ltd. to respond within 15 days. In its reply dated 28 June 2024, the company submitted that it had already made corrections to its website after receiving the notice. Upon examining this response, the CCPA was not satisfied and determined that further investigation was warranted.

Referral to Director General (Investigation)

Pursuant to Section 19(1) of the Consumer Protection Act, 2019, the CCPA referred the matter to the Director General (Investigation) vide order dated 8 August 2024 for a detailed examination.

"The Central Authority may, after receiving any information or complaint or directions from the Central Government or of its own motion, conduct or cause to be conducted a preliminary inquiry as to whether there exists a prima facie case of violation of consumer rights or any unfair trade practice or any false or misleading advertisement, by any person, which is prejudicial to the public interest or to the interests of consumers and if it is satisfied that there exists a prima facie case, it shall cause investigation to be made by the Director General or by the District Collector."

Director General's Investigation Report (Dated 13 December 2024)

The Director General attempted to seek relevant documents from the company via email dated 22 November 2024 sent to customersupport@oriensworld.in, but received no response. Based on available documentation, the investigation report returned the following findings:

  1. Non-maintenance of Direct Seller Register: The company failed to maintain and disclose on its website a register of direct sellers — inclusive of identity proof, address proof, and contact information — as expressly required under Rule 4(h) of the Consumer Protection (Direct Selling) Rules, 2021.

  2. Incomplete Product Information: Certain products listed on the company's website lacked complete and accurate descriptions necessary to enable potential buyers to make well-informed purchasing decisions, in contravention of Rule 5(1)(d).

  3. Absence of Delisted Seller Information: The company had not publicly displayed details of direct sellers who had been removed or delisted, in violation of Rule 5(16) of the Consumer Protection (Direct Selling) Rules, 2021, which mandates that such records be maintained and made publicly accessible on the website and at office premises.

  4. Company Secretary Certification Absent: Documents listed under Rule 4 — including the certificate of incorporation, MoA and AoA, PAN, TAN, GST returns, ITR, balance sheet, audit report, FSSAI licence, and trademark registration certificate — were not signed or certified by the Company Secretary, as required under Rule 5(1)(g).

  5. Unverifiable FSSAI Licence Numbers: Two FSSAI licence numbers displayed by the company — one on the website (10020042007440) and another on product packaging labels (12421999000928) — were found to have no corresponding records in the FSSAI database. Additionally, both lacked the signature of the designated FSSAI officer.