Another multi-level marketing company was fined and had its license revoked.
(Baonghean.vn) - Recently, authorities have taken strong action against many multi-level marketing companies after discovering a series of violations.
The Department of Competition and Consumer Protection (Ministry of Industry and Trade) has just fined Homeway Vietnam Co., Ltd. VND395 million and revoked its multi-level marketing registration certificate after a specialized inspection. Accordingly, the company must cease its multi-level marketing activities from November 16.
This company has violated a series of regulations such as signing multi-level marketing contracts with individuals who are not qualified to participate in multi-level marketing according to regulations; not paying commissions, bonuses, promotions and other economic benefits to multi-level marketing participants in the form of bank transfers...
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| The head office of Homeway Vietnam Co., Ltd. is located at 204/131/12 An Duong Vuong Street, Ward 16, District 8, Ho Chi Minh City. Photo: Internet |
In mid-October, Siberian Health International Co., Ltd. was fined VND815 million by the Department of Competition and Consumer Protection (Ministry of Industry and Trade) and had its license revoked. Through inspection, the company committed 10 violations including: Not properly implementing the procedures to amend and supplement the multi-level marketing registration certificate with the competent authority when there was a change in information related to the enterprise; Changing the multi-level marketing participation contract form but not implementing the procedures to amend and supplement the multi-level marketing registration certificate...
Nghe An Department of Industry and Trade then issued a notice to terminate the multi-level marketing activities of Siberian Health International Co., Ltd. This is the second largest multi-level marketing company in Nghe An, with about 8,000 participants. After Siberian Health was terminated, Nghe An province still had 14 multi-level marketing companies allowed to operate, with more than 27,500 participants. Of which, the largest is still Herbalife LLC, with nearly 12,000 participants. Meanwhile, the whole country has 22 multi-level marketing companies with a total of about 725,000 participants.
Previously, in early September, the Department of Competition and Consumer Protection also fined Unicity Marketing Vietnam Co., Ltd. and Nuskin Enterprises Vietnam Co., Ltd. more than VND400 million.
The Competition and Consumer Protection Department also emphasized that revoking the certificates of multi-level marketing enterprises does not free the company from its obligations before the law, including the obligation to ensure the rights and legitimate interests of multi-level marketing participants according to the provisions of law.
The Department also noted that in the case of disputes related to legitimate interests arising directly from multi-level marketing activities (commissions arising in accordance with the reward program, returning goods within 30 days from the date of receipt of goods, etc.), multi-level marketing participants have the right to file a lawsuit at a competent court for resolution. After the court's legally effective judgment on the settlement of disputes between the company and multi-level marketing participants regarding the company's obligations to multi-level marketing participants, participants can send the judgment to the Ministry of Industry and Trade (Department of Competition and Consumer Protection) to resolve the use of deposit money in accordance with the provisions of Article 53, Decree 40/2018.
For other disputes, multi-level marketing participants need to resolve them according to the provisions of civil or criminal law./.
