The committee will study on the need for special legislation for direct selling and multi level marketing.
The Minister for Consumer Affairs, Food and Public Distribution, Raosaheb Patil Dave informed the Lok Sbaha in a written reply.
In India, the e-commerce and direct selling are under the purview of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978 administered by Department of Financial Services.
The committee would focus on the need for a separate legislation for these business models instead of incorporating those into the PCMCS Act, according to a release issued by the government.
The committee will examine the nature and growth of direct selling/MLM companies in the country over last five years.