Ministry of Industry and Trade warns about multi-level marketing activities of Korean cosmetic brand Atomy

The Department of Competition and Consumer Protection (under the Ministry of Industry and Trade) has just issued a warning to consumers about unlicensed multi-level marketing activities of organizations and individuals trading Atomy products.

Accordingly, a number of websites and social networks are selling many products such as functional foods and cosmetics under the Atomy brand. Many individuals have purchased products directly through these channels and have been invited to become collaborators or distributors to receive commissions based on the sales of their network of subordinate participants.

Organizations and individuals participating in the Atomy sales network are at risk of violating criminal law.

Most of the advertisements on these channels mention that this is a multi-level marketing company from Korea, present in several countries around the world with a revenue of up to 751 million USD in 2016.

According to Atomy’s social media posts, the brand’s mission in Vietnam is to “rewrite the ugly definition of multi-level marketing.” There is no membership fee and consumers only need to make one purchase per year (the cheapest is less than 100,000 VND) to maintain their account. The brand said it is in the process of registering and is expected to officially launch in October 2018.

However, the Department of Competition and Consumer Protection confirmed that it has not received any information or application for a multi-level marketing certificate from any company with a product or brand named Atomy.

“To avoid related material and legal risks, the Department of Competition and Consumer Protection recommends that organizations and individuals do not participate in developing a multi-level marketing network for Atomy products in Vietnam at this time,” a representative of this agency informed.