Consumer Alliance Company officially ceases multi-level marketing operations.

The Competition Authority (Ministry of Industry and Trade) has just issued an official announcement regarding the termination of multi-level marketing activities nationwide by Vietnam Consumer Alliance Joint Stock Company.

Terminate the multi-level marketing activities of the Consumer Alliance Company.

Specifically, the Competition Authority stated that the termination of multi-level marketing activities by Vietnam Consumer Alliance Joint Stock Company was carried out after the company's multi-level marketing registration certificate was revoked.

Within 90 days from the date the Competition Authority issues this notice, Vietnam Consumer Alliance Joint Stock Company is responsible for fulfilling its obligations to participants in multi-level marketing as stipulated by law.

Previously, in November 2016, the Competition Authority fined Vietnam Consumer Alliance Joint Stock Company 409 million VND and revoked its operating license for violations in multi-level marketing activities, specifically:

No amendment or supplementary procedures will be carried out for the multi-level marketing business registration certificate when there are changes or additions related to the application dossier for the multi-level marketing business registration certificate.

Signing a multi-level marketing participation contract that does not include all the information required by law, or signing a multi-level marketing participation contract with an individual who does not meet the eligibility requirements for multi-level marketing.

Failure to properly and fully fulfill the obligation to submit periodic reports to competent state agencies as prescribed by law, and the obligation to provide basic training for participants in multi-level marketing as prescribed by law.

Mr. Hung Xuan Nghe, from Thanh Son commune, Thanh Chuong district, invested all his savings of 150 million VND, accumulated over many years, into a multi-level marketing scheme run by the Vietnam Consumer Alliance Joint Stock Company. (Photo: Archival image)

The company also failed to fulfill its obligation to deduct personal income tax from multi-level marketing participants before paying commissions, bonuses, or other economic benefits to them.

Maintaining more than one multi-level marketing business position, multi-level marketing business contract, or multi-level marketing business code for a single multi-level marketing participant.

In 2012, the multi-level marketing fraud operation of Muaban24 (MB24) online trading and training company was dismantled nationwide, including in Bac Giang province. Vu Ngoc Thuyen (born in 1976), the director of the Bac Giang city branch of the company, was sentenced to 4 years in prison, but was released on bail in early 2013.

While awaiting sentencing, Thuyen, along with Nguyen Van Chung and Nguyen Van Cuong, established the Consumer Alliance Company and became its 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, with its headquarters at 33 Nguyen Thi Minh Khai Street, Xuong Giang Ward, Bac Giang City, Bac Giang Province. The company was granted its initial business registration license by the Bac Giang Department of Industry and Trade on June 21, 2013. Nguyen Van Chung serves as the chairman of the board of directors, and the company primarily engages in multi-level marketing in the functional food sector.

According to One World