Dirty multi-level marketing schemes trap poor people in Thanh Chuong (Nghe An).

(Baonghean.vn) - Dozens of families in Thanh Son commune (Thanh Chuong district) are being tricked by the Vietnam Consumer Alliance Joint Stock Company into participating in a product purchase scheme, collecting billions of dong. Visiting Thanh Son commune (Thanh Chuong district) reveals the devastating impact of this "dirty" multi-level marketing scheme on poor people.

Poor people "donate" 1.8 billion VND to multi-level marketing schemes.

Recently, the "dirty" multi-level marketing scheme has been causing outrage and anxiety among the people and even among local authorities and agencies. Notably, in Thanh Son commune (Thanh Chuong district) – a resettlement commune with a majority of poor residents – the Vietnam Consumer Alliance Joint Stock Company is using deceptive tactics to lure people into buying products and then profiting billions of dong, causing widespread public anger and indignation.

In less than two years, impoverished residents of Thanh Son commune have "donated" billions of dong to Vietnam Consumer Alliance Joint Stock Company.

Through discussions with the leaders of Thanh Son commune's People's Committee, it was learned that the people are currently very confused and extremely worried. Many people have mistakenly used their money to buy goods from the Vietnam Consumer Alliance multi-level marketing company, but now they don't know if they will get their money back. Many families have had to sell their buffaloes and cows, using up all their savings, and are now in a desperate situation.

According to a preliminary list compiled by the commune police, 86 residents of Thanh Son have participated in the multi-level marketing scheme of Vietnam Consumer Alliance Joint Stock Company. The number of packages purchased by these residents is 216, each valued at 8.45 million VND. This translates to a total of 1.825 billion VND spent by the residents.

However, the official number is much higher. According to Mr. Lo Trung Thong, Chairman of the Thanh Son Commune People's Committee, many people still don't dare speak out because they fear being threatened with imprisonment and not getting their money back. Some buyers are now afraid of being ridiculed for speaking out, so they remain silent, considering the money lost without daring to report it to the local authorities.

To date, the only people who have received the so-called "gratitude" money from the Vietnam Consumer Alliance Joint Stock Company are officials of the Thanh Son Commune People's Committee, with an initial estimated amount of approximately 250 million VND. Most of the people participating in the Vietnam Consumer Alliance multi-level marketing scheme have not received any benefits.

For example, Mr. Vi Van Tham, an office staff member of the commune's People's Committee, received nearly 100 million VND as a thank-you payment from the company after only 5 months of participation. "The month I received the most was 50 million VND, the following months were less. In total, I received nearly 100 million VND. This thank-you payment was only for a select few; those who joined later did not receive it. Although I received the money, I realized that many multi-level marketing companies are not sustainable, so in May 2015, I stopped participating," Mr. Tham stated.

People are confused.

Using deceptive tactics such as luring people into buying products and promising commissions, with the promise of a huge reward of 300 million VND three years later, many people fell for the scam and are now anxiously waiting in despair.

Notably, there is the case of Mr. Hung Xuan Nghe, residing in Thanh Binh village, Thanh Son commune. After being persuaded to participate by his colleague, Mr. Luong Van Phu, a teacher at Kim Lam Primary School, Mr. Nghe spent all of his savings of 150 million VND to buy 18 packages of goods from Vietnam Consumer Alliance Joint Stock Company. However, to date, Mr. Nghe has only received 4 packages and 11 million VND, which the company calls a thank-you gift.

Mr. Hung Xuan Nghe spent all his savings of 150 million VND, which he had accumulated over the years, on a multi-level marketing scheme to receive these boxes of dietary supplements.

“Mr. Phu came to my house to persuade me to join, saying that if I bought products, the company would reward me with 300 million VND per package. I thought, 'Why not join if I can buy products to use and also get a bonus?' But now, after hearing a lot of information that it's a multi-level marketing scam, I'm worried about losing all the money I invested,” Mr. Nghe shared.

Like Mr. Nghe, Mrs. Luong Thi Hong, residing in Kim Chuong village, Thanh Son commune, is also feeling anxious and restless after having joined the multi-level marketing company Vietnam Consumer Alliance. Despite her worries, she doesn't dare tell her children for fear of being scolded.

Ms. Hong stated: "That day, May 22, 2015, I was at home when Mr. Vien (Vice Chairman of the People's Council of Thanh Son commune - PV) came in and invited me to join a multi-level marketing company. At that time, I was in poor health and couldn't do heavy labor, so when Mr. Vien told me that if I bought a package of goods for 8.45 million VND, after 3 years the company would reward me with 300 million VND, I agreed to join."

Afterward, Mr. Vien personally drove me to the company for a tour and then took me to a shop selling 5 taels of gold to wear around my neck. I bought two packages of goods for 17 million dong, and to this day I have received all the goods but have not seen any reward or appreciation money from the company. Ms. Hong honestly stated that she participated partly because she wanted to buy various nutritional supplements and functional foods for her mother. But the main reason was because she heard that the company would reward her with a very large amount of money.

Many teachers at Kim Lam Primary School are involved in multi-level marketing.

Despite spending a large sum of money, Ms. Hong currently has no proof of her purchase from the company. “After the purchase, they kept the purchase receipts and payment slips. But I didn't receive a sales contract. I called Mr. Vien and he said I had to wait because I hadn't been a member for three years yet, so I hadn't received any thank-you money,” Ms. Hong stated.

Although the Vietnam Consumer Alliance Joint Stock Company had entered Thanh Son commune since 2013, few people knew about it at the time. It wasn't until June 2014 that the Party Committee and the local government of Thanh Son commune became aware of it, but they were surprised to find that so many people had already joined.

Nhat Lan - Pham Bang