Ministry of Industry and Trade speaks out about violations of multi-level marketing companies

The Ministry of Industry and Trade believes that violations of multi-level marketing companies will be handled accordingly.

The Ministry of Industry and Trade has just officially announced the results of the inspection of 4/7 multi-level marketing businesses with a series of violations. Public opinion has raised questions about how to handle these businesses, where is the management responsibility of the Ministry of Industry and Trade when a series of violations by multi-level marketing businesses have occurred over a long period of time, and are the rights of multi-level marketing participants protected?

Deputy Minister of Industry and Trade Tran Quoc Khanh

VTV reporter interviewed Deputy Minister of Industry and Trade Tran Quoc Khanh about this issue.

PV:Dear Deputy Minister, the public is very interested in the results of the inspection of 4/7 multi-level marketing businesses. Many companies have violated regulations for a long time. Is there laxity in licensing and managing the multi-level marketing business sector?

Deputy Minister Tran Quoc Khanh:The Ministry of Industry and Trade issues multi-level marketing certificates to businesses in accordance with the law and then conducts inspections. We believe that we have actively inspected multi-level marketing businesses. Immediately after taking over the function of issuing multi-level marketing certificates, 6 months later we organized the first inspection and the inspections have been maintained since then. Violations are handled accordingly. If there are signs of serious violations, all information is transferred to the competent authorities for handling.

The Departments of Industry and Trade have also carried out many inspections in accordance with the direction of the Minister of Industry and Trade to control multi-level marketing activities and actively. From January 2016 to now, the Departments of Industry and Trade have inspected and fined 42 companies, with a total amount of up to 2.8 billion VND.

PV:Why are there still no results from the inspection of three large companies, including Thien Ngoc Minh Uy Company? It is known that there are many complaints related to this company. Can the Deputy Minister provide specific information?

Deputy Minister Tran Quoc Khanh:For Thien Ngoc Minh Uy Company Limited, the inspection is currently in its final stages. We are focusing on clarifying a few complaints that have recently been received. During the inspection, we continue to receive a number of complaints and the leaders of the Ministry of Industry and Trade direct the clarification of each complaint. Only when all the complaints are gone will it be completed.

As for Amway Vietnam Co., Ltd., according to the plan, the inspection team will conduct the inspection from July 18. As for Unicity Marketing Vietnam Co., Ltd., the Competition Management Department previously conducted an inspection and imposed a fine of VND110 million for several violations of the law on multi-level marketing management.

In order to implement Resolution 35 of the Government, which does not inspect enterprises more than once a year, the Ministry of Industry and Trade carefully considers removing this enterprise from the inspection. In addition, since the penalty, no further complaints will be received about this company. However, if this company continues to violate, we will ask the Government for permission to inspect the enterprise.

PV:Another issue of public concern is whether people who have paid into multi-level networks will receive their money back or have any benefits guaranteed, Deputy Minister?

Deputy Minister Tran Quoc Khanh:During the inspection, we discovered two subjects, including the actual participants. They paid money to the company, then received the goods to sell. But for some reason, they could not sell the goods and now they want to return the goods to the company to get their money back. In those cases, if the company refuses to receive the goods without a valid reason, our Ministry of Industry and Trade will definitely step in to protect the interests of those who participate in multi-level marketing.

As for the second group, they are not real multi-level marketers. They give the company money but do not receive the goods and even refuse to receive the goods. They give the company money in the hope of receiving the interest from the company. This is a completely different relationship, not a multi-level market relationship anymore. Therefore, when a dispute arises between the parties, it is necessary to take measures to handle it according to the provisions of the law. If it is a civil dispute, then go to civil court. If one party believes that the other party has signs of fraud, then report it to the police to investigate and handle it according to the provisions of criminal law.

PV:Thank you, Deputy Minister./.

According to VOV