Though in India, Network Marketing is considered to be legal, unfortunately our constitution doesnt say what type of compensation plan is legal... so until proved illegal (and this depends only on the discretion of the judge handling the case) all Network Marketing companies in India are legal!
However, here are 4 questions that need to be asked and if you get a positive response for all of them, you can rest assured that the company and the plan will be deemed legal even in case it ever goes to a court of law.
1. There are “Real” products being bought and/or sold by “Real” people.
Meaning that the product is not some pixel on someones website, and the people involved are not "bots". Hence while registering for Prakriti Network, personal detials like PAN number or Passport number have to be furnished!
2. The answer to the question: “Would you buy these products if there was no business opportunity at the prices you are buying them now?” is a resounding “YES!”
The products are not "over priced" according to normal market standards... Otherwise it again becomes a thinly disguised money circulation scheme.
3. The Referral Program is not a “Chain” or a “Pyramid” Scheme.
Meaning that other than having more people join, there is cash flow into the organisation... so its not a "one time" purchase only... then it becomes network recruiting, not network marketing :).. please read up the first post on this blog to know more about this.
4. There is an equal opportunity for everyone who joins the business to earn money, meaning an individual’s position in the network when they join makes no difference to the income they will earn.
The income that people earn depends on how much they (and their group) sell, not on their position on the network.
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