Ministry of Industry and Trade continuously punishes many multi-level marketing companies

The Competition Management Department, Ministry of Industry and Trade has investigated and handled a series of multi-level marketing companies with signs of violating the law.

Recently, based on complaints from multi-level marketing participants and press reports, the Competition Management Department, Ministry of Industry and Trade, has investigated and handled a series of multi-level marketing companies showing signs of violating the law.

Ministry of Industry and Trade continuously punishes many multi-level marketing companies

Recently, the Competition Management Department investigated and verified acts with signs of violating the law on multi-level sales management activities of MLM Vietnam Investment, Production and Trading Joint Stock Company with its head office at B5 D6 Cau Giay New Urban Area, Dich Vong Ward, Cau Giay District, Hanoi.

Based on the investigation results, on July 19, 2016, the Competition Management Department issued a decision to fine this Company a total of VND 350 million for the following violations: Maintaining more than one multi-level marketing position/multi-level marketing code for the same multi-level marketing participant; Not signing a written contract with a multi-level marketing participant and not committing to allow multi-level marketing participants to return goods.

Previously, the Competition Management Department decided to revoke the multi-level marketing registration certificate of Truong Giang Vietnam Investment and Trading Joint Stock Company, headquartered on the 1st floor of CT3 building, Van Quan Urban Area, Phuc La Ward, Ha Dong, Hanoi. At the same time, the company was fined VND350 million.

The inspection results showed that some products were sold by Truong Giang Company to multi-level marketing participants at prices 50-82 times higher than the import price. In addition, this enterprise also maintained more than one multi-level marketing position/multi-level marketing code for the same multi-level marketing participant; did not carry out procedures to amend or supplement the multi-level marketing registration certificate and did not commit to allowing multi-level marketing participants to return goods according to the law.

Truong Giang Vietnam Investment and Trading Joint Stock Company is the 6th enterprise to have its business license revoked by the Competition Management Department, following names such as Con Duong Viet Production and Trading Joint Stock Company, Dai Hung 668 Vision Company Limited, TNC International Import-Export and Trading Joint Stock Company, New Power Vietnam Joint Stock Company - later renamed Ngoc Viet Heart Joint Stock Company, and Lien Ket Viet Company./.

According to VOV