Compliance and security, built into the software
Your software decides how money moves through your network. We build it so the rules you must follow are part of the system, and so your data and your members' data stay protected.
What the Rules require, and how the software supports it
The Consumer Protection (Direct Selling) Rules, 2021 were notified on 28 December 2021 under the Consumer Protection Act, 2019, and amended in 2023. They apply to every direct selling business that offers goods or services to consumers in India, including businesses based outside India.
| The Rules require | How our software supports it |
|---|---|
| No entry or subscription fee from direct sellers | Free registration. No paid joining packages, pins or kits as a condition of joining. |
| No pyramid or money circulation schemes | Plans pay on product sales volume, and we review every plan before we configure it. |
| A written contract with every direct seller | The seller agreement is accepted digitally at sign-up and stored with the seller record. |
| Records of direct sellers kept by the company | A seller master with KYC, agreement, ID card and status history, exportable at any time. |
| A grievance redressal mechanism and a grievance officer | A ticket desk with complaint numbers, officer assignment, and acknowledgement and resolution tracking. |
| A nodal officer responsible for compliance | A compliance dashboard and audit trail the nodal officer can review and export. |
| Spurious goods and deficient services taken back and refunded | Return, refund and buy-back workflows that also reverse the related commission. |
| An order form for the consumer at or before the first sale | A digital order form and GST invoice for every order. |
| Company details published on the website | Website pages for legal name, address, contact details, grievance officer and product information. |
| Online sales that follow the Consumer Protection (E-Commerce) Rules, 2020 | Store pages with seller details, return and refund policy, and grievance contact. |
This summary helps you plan your software. It is not legal advice. Read the Rules as amended and confirm your plan with a legal advisor. State governments also notify their own monitoring mechanisms, so check the one for each state you operate in.
GST and TDS, handled in the payout run
A tax mistake in a payout cycle repeats across thousands of partners. The software applies your tax settings the same way every time.
- GST invoice on every order, and a credit note on every return
- TDS deducted on commission and incentive payouts at the rates you configure
- Partner-wise TDS reports for your quarterly filing
- PAN checked before payout, with payouts held where details are missing
- Tax settings versioned, so past cycles keep the rates that applied at the time
How we protect your platform
Role-based access
Staff see only what their role needs, branch by branch.
Audit trail
Plan changes, payout approvals and profile edits are logged with user and time.
OTP verification
Two-step verification for admin logins and payout approvals.
Transaction password
A separate password for wallet withdrawals and sensitive changes.
Encryption
HTTPS on every page, and passwords stored as salted hashes.
Backups
Automated backups with periodic test restores.
Server hardening
Firewall, patching and access controls maintained under AMC.
Security audits
Support for third-party security audits (VAPT) before launch and after major releases.
Built with the Digital Personal Data Protection Act, 2023 in mind
Your platform holds names, phone numbers, PAN and bank details for thousands of people. We build in the controls you need to handle that data responsibly.
- Consent captured at sign-up, with a clear notice of what is collected and why
- Requests to access, correct or delete personal data, tracked to completion
- Retention settings, so data isn't kept longer than you need it
- Masked PAN and bank numbers for staff who don't need the full value
- Access logs that show who viewed or changed personal records
Projects we don't take on
We review the business model of every new project before we start, and we turn down work that would put our clients' members or customers at risk.
- Money circulation or pyramid schemes, where income comes from recruitment or joining fees
- Schemes that promise fixed or guaranteed returns on money deposited
- Unregulated deposit schemes of any kind
- Token, coin or ICO sales to the public
If an existing client's business changes into one of these, we stop work on that platform.
See it run on a plan like yours
Share your plan or channel structure. We’ll set up the demo around it and walk you through the admin panel, the partner app and a sample payout.
Sales +91 93100 77762 · sales@hautitsolutions.com
