Direct selling is a significant component of the Indian economy, contributing to entrepreneurship and employment. However, due to concerns over fraudulent practices and pyramid schemes, the Government of India has introduced various regulations over time. This paper examines the evolution of direct selling regulations in India, focusing on the Direct Selling Guidelines of 2016, the Consumer Protection (Direct Selling) Rules of 2021, and the amendments made in 2023. By analyzing these frameworks, this study provides insights into their implications on the industry, compliance requirements, and consumer protection. The discussion section evaluates these policies in comparison to international best practices, and the conclusion provides recommendations for further improvements.