China has lifted a seven-year-old ban on Direct Selling mode from December one as part of Beijing's commitment to the WTO but will continue to outlaw pyramid schemes.

The long-awaited direct selling rules was issued yesterday, giving a legal standing to a business model that had been banned in the country since 1998 after the Communist Party-led government alleged that direct selling in some cases led to formation of cult organisations.

The State Council issued the Regulation of Direct Selling Administration, which will become effective from December one, and the Anti-Pyramid Selling Regulation.

"The legislation is to guide and regulate the development of the direct selling sector in China," the Xinhua News Agency quoted the spokesperson from the State Council, the Chinese cabinet, as saying.




The Economic Times