Tricks to organize seminars and sell high-priced products to the elderly

Family in turmoil because of believing the seller

For the past few days, the lobby of Dai Phu Gia Hotel (Block 4, Tan Ky Town, Tan Ky District) has always been packed with people, along with piles of goods. They are all children and grandchildren of elderly people who bought goods from a company and came here to return the goods they had purchased.

“Many people bought it, now their children bring it back to return. Some nights, people wait in front of the hotel until almost dawn,” said Ms. Tran Thi Quynh (33 years old, Tan Ky town).

Pillows worth 2.2 million VND were returned by people. Photo: HT

According to the reporter's investigation, about 2 months ago, KOREA MART Tan Ky Company Limited rented the hall of Dai Phu Gia Hotel for the purpose of organizing a seminar and introducing products. The monthly rental fee was 30 million VND, the rental period was 4 months. The company then sent people to every corner to distribute leaflets, inviting people to attend the seminar to introduce products. The customers that the company aimed at were the elderly. Right next to the door of the hall that the company rented, there was a notice posted that only accepted customers "between the ages of 40 and 70".

“They hold seminars twice a day. There are sessions with about 300 participants, all of whom are elderly. Those who attend the seminars all take home gifts, regardless of whether they buy the products or not. The gifts are mainly monosodium glutamate packages and laundry detergent…”, Ms. Quynh added.

While organizing the seminar, these people asked guests not to record videos or broadcast live. Whenever they discovered someone filming, the gift giving and product introduction would be paused. The products introduced by this company are quite diverse, from pillows, bed sheets to functional foods... During the entire seminar, they continuously showed off the miraculous uses of the products. Among them, bed sheets and pillows can help the elderly sleep well, no longer have joint pain...

These two pillows and bedspread were originally sold for nearly 20 million VND. Photo: HT

The rugs look quite simple, but are being sold for nearly 20 million VND each. A pair of pillows is being sold for 4.4 million VND. Despite such high prices, many elderly people still do not hesitate to spend money to buy them. “I heard they said the effects were miraculous, but I had no money at home, but I still borrowed money to buy them. Now that my child has discovered them, I have no choice but to return them,” said the 65-year-old woman.

According to the reporter’s investigation, the carpet was initially sold by the company for nearly 20 million VND, but over time, as fewer and fewer people bought it, they continuously reduced the price. After just a few days, the price of the carpet dropped to 11 million VND.

In recent days, some young people have discovered that their parents often attend conferences and bring back many expensive items, so they have come to the hotel lobby to take their relatives home. However, some elderly people, believing the company's words, reacted strongly to their children and grandchildren.

“There was an old man who trusted the company so much that he bought whatever they advertised for sale. When his son found out and went to the company to take him home, he took his sandals and beat him,” said a resident of Tan Ky town.

However, by the evening of the same day, the family members finally convinced the old man. They immediately brought the products to the hotel to return them to the company. Seeing that this family could return them, many other people also rushed to bring their goods to return them, causing the area in front of the hotel to be crowded. In addition, the local government also broadcast an announcement on the loudspeaker asking people who had bought products from this company to come to the hotel to get their money back. However, the amount of money they were refunded by the company was not the same as what they had previously spent. Some people bought a carpet for nearly 20 million VND, but when they returned it a few days later, they were only refunded more than 10 million VND. The same was true for other items.

Inside the conference were all old people. Photo: HT

Old tricks, new customers

Speaking to Nghe An Newspaper reporters, Mr. Nguyen Cong Trung - Chairman of Tan Ky Town People's Committee said that immediately after receiving feedback from local people about this company coming to the area to introduce products and sell them to people at higher prices than the market, while the quality was not guaranteed, the locality established an inspection team and reported to the competent authorities to inspect the products sold by the company. In addition, the Town People's Committee also issued a warning to local people.

Mr. Vy Van Quang - Head of the Economic - Infrastructure Department of Tan Ky district said that immediately after this situation appeared, the District People's Committee also issued a document on strengthening the management of product introduction, sales introduction, organizing conferences, seminars combined with sales, promotions with gifts, photo introductions... to prevent and prevent multi-level marketing activities in the area.

The company posted a notice that it only accepts customers between 40 and 70 years old. Photo: HT

The document of Tan Ky district stated that recently in the communes and towns, some units and enterprises have organized activities to introduce products, introduce sales, organize conferences, seminars combined with sales..., many contents are not in accordance with business registration, many products have unknown origin, unclear prices, no listed prices..., making it difficult for state management in communes and towns; causing insecurity and disorder in the area.

To strengthen the fight to prevent and combat multi-level marketing activities, the People's Committee of Tan Ky district requested relevant units not to issue documents introducing to communes and towns enterprises that have activities of introducing products, organizing conferences, seminars combined with sales, promotions and giving away accompanying goods...

Tan Ky District People's Committee also requested communes and towns to proactively coordinate with relevant agencies to grasp the situation of multi-level marketing activities of enterprises and individuals in the area; ensure effective implementation of preventive measures, provide information or report to competent authorities to strictly handle illegal multi-level marketing activities. Do not allow enterprises and individuals to rent or borrow the halls of the People's Committees of communes and towns, cultural houses of blocks, hamlets, stadiums to organize product introductions, sales, organize seminars combined with sales. At the same time, direct blocks and hamlets to propagate and mobilize people not to participate in seminars, product introductions, sales introductions, etc.

People return goods. Photo: HT

In addition, Tan Ky District People's Committee also issued a document requesting the Department of Industry and Trade and the Nghe An Market Management Department to coordinate and assist the district in inspecting and testing the quality, origin, and prices of goods and services of KOREA MART Tan Ky Company Limited used in the promotion program to ensure consumer rights.

Speaking to Nghe An Newspaper reporters, the leader of Market Management Team No. 5, Nghe An Market Management Department said that after the inspection, the unit initially fined KOREA MART Tan Ky Company Limited 1.5 million VND for not posting prices.