Nghe An tightens management of multi-level marketing seminars.
(Baonghean.vn) - Recently, the multi-level marketing situation in the province has remained chaotic, especially through seminars. In this context, localities in Nghe An are urgently working to strengthen the role of state management.
Supervising workshops
The Nghe An Department of Industry and Trade has issued a warning about signs of unlicensed multi-level marketing activities related to the Natural Intelligence Trading Joint Stock Company - Natural Intelligence Science Center.
Accordingly, based on feedback from the public, the National Competition Commission - Ministry of Industry and Trade has gathered some information related to signs of unauthorized multi-level marketing activities involving the Natural Intelligence Trading Joint Stock Company - Natural Intelligence Science Center.
According to collected documents, there are indications that this entity is developing a multi-level marketing business model. The entity also shows signs of providing exaggerated information about the Syrinx product to attract participants. Meanwhile, to date, the authorities have not issued a certificate of registration for multi-level marketing activities to any business or organization named Natural Intelligence Trading Joint Stock Company - Natural Intelligence Science Center mentioned above.
Authorities warn that people should not participate in unlicensed multi-level marketing activities to minimize material and legal risks and losses. They should cooperate and provide information and documents to authorities for verification and processing according to regulations.
This is just one of a series of unlicensed multi-level marketing schemes that have been operating rampantly recently and have been warned against by authorities. According to the head of the Nghe An Department of Industry and Trade, multi-level marketing activities are increasingly widespread, especially in rural and remote areas, but management remains inadequate. Coordination between different levels and sectors in managing multi-level marketing activities in the locality is limited, making inspection and supervision very difficult.
Against this backdrop, the unit has recently implemented several measures to strengthen management. Specifically, most recently, in Vinh City, there were seminars organized by a multi-level marketing company with over 3,000 participants. Although the company had been licensed to operate, before the seminars took place, the Nghe An Department of Industry and Trade still issued documents requesting the company to provide materials and coordinate with relevant departments, agencies, and localities to monitor the event. During the seminars, local authorities consistently assigned personnel to supervise, ensuring that the seminars proceeded within the permitted framework and in accordance with the law.
According to the leaders of the Department of Industry and Trade, the unit has also sent a document to relevant departments, agencies, and the People's Committees of districts, cities, and towns regarding strengthening the management of multi-level marketing activities in the locality. Accordingly, due to numerous complaints and feedback received recently regarding issues in conferences, seminars, and training activities of multi-level marketing businesses and participants, in order to strengthen the management of multi-level marketing activities in the locality, the Department of Industry and Trade requests that agencies and units coordinate effectively in implementing the Regulations on coordinating state management of multi-level marketing business activities in Nghe An province, as stipulated in Decision No. 11/2020/QD-UBND dated April 24, 2020, of the Provincial People's Committee.
Strengthen supervision, inspection, and handling of violations in multi-level marketing activities in general, and in particular, conferences, seminars, and training activities related to multi-level marketing conducted by businesses and participants in the locality, including both online and in-person activities.
The Department of Industry and Trade also requested the People's Committees of districts, cities, and towns to direct specialized departments and the People's Committees of communes, wards, and townships to strengthen the dissemination of legal regulations on the management of multi-level marketing business activities, and the acts and signs of violations of the law by businesses and participants in multi-level marketing, in order to raise awareness and compliance with the law among agencies, organizations, and people in the area. They should encourage owners of food and beverage establishments, restaurants, and hotels to sign commitments not to allow organizations or individuals to organize conferences, seminars, and training sessions that show signs of disguised multi-level marketing business activities or that have not been licensed. They should promptly detect violations and report them to the relevant authorities for inspection and handling according to regulations.
The Department of Industry and Trade also requested the Provincial Consumer Rights Protection Association to inform and warn consumers about unlicensed and illegal multi-level marketing businesses and goods and services that do not meet requirements. It also proposed and recommended that competent state agencies handle violations of consumer protection laws in multi-level marketing business activities.
Strengthen inspection and enforcement.
Not only the Department of Industry and Trade, but also districts, cities, and towns throughout the province are actively working to rectify the chaotic situation of multi-level marketing activities. In Que Phong district, Mr. Bui Van Hien, Vice Chairman of the District People's Committee, said that he had just issued a document directing the Office of the District People's Council and People's Committee to coordinate with relevant departments and units to inspect and handle violations regarding the fulfillment of business conditions for goods by enterprises and individuals participating in multi-level marketing in the health sector; and to handle violations of the law in the production, preliminary processing, processing, preservation, transportation, and trading of food products, cosmetics, and other products of multi-level marketing enterprises in the district. They are also to inspect and handle, within their authority, activities related to advertising, conferences, seminars, propaganda, and information provision about medicines, cosmetics, functional foods, and other goods of multi-level marketing enterprises under their management according to the law.
The District Economic and Infrastructure Department is also tasked with proactively inspecting, monitoring, detecting, handling, or reporting to competent authorities for handling violations of the law on multi-level marketing business activities within its jurisdiction, in accordance with legal regulations. It will coordinate with relevant agencies to inspect, check, and monitor conferences, seminars, and training sessions on multi-level marketing organized within the district.
The leaders of Que Phong district also requested the District Police to coordinate in guiding and urging organizations and individuals operating multi-level marketing businesses to comply with the law; strengthen the management of temporary residence and absence of people and individuals involved in the area to promptly detect and handle according to the law any organizations and individuals operating multi-level marketing businesses with signs of fraud or illegal fundraising. They also requested the District Police to take the lead in coordinating with relevant departments and units to develop plans and programs to inspect and review the compliance with the law by businesses and participants in multi-level marketing in the district. They should regularly gather information, monitor, supervise, prevent, and promptly handle businesses, organizations, and individuals operating multi-level marketing businesses with signs of violating the law. Furthermore, they should receive and process reports and denunciations of crimes related to multi-level marketing activities in the area. Initiating criminal proceedings, investigating crimes, and performing other duties as prescribed by law.
Direct the commune-level police to act as the focal point, regularly coordinating with specialized departments and agencies at the commune level in monitoring, inspecting, detecting, and promptly handling violations of the law by organizations and individuals related to multi-level marketing business activities in the locality.
In addition, the leaders of Que Phong district also assigned the Department of Culture and Information to take the lead in directing the District's Center for Culture, Information and Communication to develop regular programs and special features to disseminate laws on multi-level marketing, warn people about distorted activities, manifestations of illegal multi-level marketing activities and business forms that are easily mistaken for multi-level marketing; and to reflect and provide timely, accurate, and objective information on the activities of multi-level marketing businesses.