The Competition Management Department has just revoked the multi-level marketing registration certificate of Vietnam Consumer Union Joint Stock Company.

The Competition Management Department, Ministry of Industry and Trade has just decided to revoke the multi-level marketing registration certificate of Vietnam Consumer Union Joint Stock Company, and at the same time fined the company nearly 409.5 million VND.

Vietnam Consumer Union Joint Stock Company has its head office at 33 Nguyen Thi Minh Khai Street, Xuong Giang Ward, Bac Giang City, Bac Giang Province (Business Registration Certificate No. 0105989285 issued by the Department of Planning and Investment of Bac Giang Province for the first time on September 11, 2012, changed for the 11th time on December 11, 2015).

Mr. Hung Xuan Nghe (Thanh Son, Thanh Chuong) spent all his savings of 150 million VND over the years and poured it into the multi-level marketing of the Vietnam Consumer Union company to receive functional food boxes like this.

The Consumer Union violated multi-level sales activities, specifically: Not carrying out procedures to amend and supplement the Certificate of registration for multi-level sales activities when there were changes or supplements related to the application for the Certificate of registration for multi-level sales activities;

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;

Improperly or incompletely performing the obligation to periodically report to competent state agencies as prescribed by law; Improperly or incompletely performing the obligation to provide basic training to multi-level sales participants as prescribed by law;

Failure to perform the obligation to deduct personal income tax of 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.

The Competition Management Department, Ministry of Industry and Trade has applied additional sanctions as follows: Revoking the Multi-level Sales Registration Certificate No. 013/GCN-QLCT issued on December 31, 2014 of Vietnam Consumer Union Joint Stock Company.

Revoking the Certificate of a multi-level marketing enterprise does not release this enterprise from its obligations before the law, including the obligation to ensure the legitimate rights of distributors and multi-level marketing participants in the enterprise's multi-level marketing network./.

According to VOV