Officially terminate multi-level activities of Consumer Union Company

The Competition Management Department (Ministry of Industry and Trade) has just officially announced the termination of multi-level sales activities nationwide of Vietnam Consumer Union Joint Stock Company.

Termination of multi-level marketing activities of Consumer Union Company.

Specifically, the Competition Management Department said that the termination of multi-level sales activities of Vietnam Consumer Union Joint Stock Company was carried out after this enterprise had its multi-level sales registration certificate revoked.

Within 90 days from the date the Competition Management Department issues this notice, Vietnam Consumer Union Joint Stock Company must be responsible for fulfilling its obligations to multi-level sales participants as prescribed by law.

Previously in November 2016, the Competition Management Department fined 409 million VND and revoked the operating license of Vietnam Consumer Union Joint Stock Company due to violations in multi-level sales activities, specifically:

Do not carry out procedures to amend or supplement the multi-level sales registration certificate when there are changes or supplements related to the application for a multi-level sales registration certificate.

Signing a multi-level marketing contract that does not include full information as prescribed by law, signing a multi-level marketing contract with an individual who is not eligible to participate in multi-level marketing.

Failure to properly or fully perform the obligation to periodically report to competent state agencies as prescribed by law, and the obligation to provide basic training to multi-level sales participants as prescribed by law.

Mr. Hung Xuan Nghe in Thanh Son commune, Thanh Chuong, spent all his savings of 150 million VND over the years and poured it all into the multi-level marketing of Vietnam Consumer Union Joint Stock Company. Photo: Archive

The Company also does not fulfill its obligation to deduct personal income tax from multi-level sales participants to pay into the state budget before paying commissions, bonuses or other economic benefits to multi-level sales participants.

Maintain more than one multi-level marketing position, multi-level marketing contract, multi-level marketing code for a multi-level marketing participant.

In 2012, the fraudulent activities through the form of multi-level marketing of the online trading training joint stock company Muaban24 (MB24) were destroyed by the authorities nationwide, including Bac Giang. Vu Ngoc Thuyen (born in 1976), as the director of the Bac Giang city branch of this company, was sentenced to 4 years in prison and was released on bail in early 2013.

While awaiting his sentence, Thuyen continued to work with Nguyen Van Chung and Nguyen Van Cuong to establish the Consumer Alliance Company and became the company's vice chairman of the board of directors. However, during its operation, the Consumer Alliance Company showed many signs of fraud.

Vietnam Consumer Alliance Joint Stock Company was established in 2012, headquartered at 33 Nguyen Thi Minh Khai Street, Xuong Giang Ward, Bac Giang City, Bac Giang Province. The company was granted its first business registration certificate by the Bac Giang Department of Industry and Trade on June 21, 2013. Nguyen Van Chung is the chairman of the board of directors, conducting multi-level marketing mainly in the field of functional foods.

According to One World