Exposing the fraudulent activities of Thien Ngoc Minh Uy establishment in Thai Hoa town.

(Baonghean.vn) -Studying the information provided by the Competition Management Department (Ministry of Industry and Trade) to identify signs of unreliable multi-level marketing companies, and comparing it with what has been heard and seen in Thai Hoa town, it is clear that it is time for law enforcement agencies to intervene.

Following the discovery and handling of the "dirty" multi-level marketing scheme Lien Ket Viet by law enforcement agencies, the Competition Management Department has released information to help people correctly understand multi-level marketing activities and the signs of unreliable multi-level marketing companies. (The Competition Management Department's website still has the article "Basic Understanding of Multi-Level Marketing Activities" published on March 4, 2016).

The Competition Authority (Ministry of Industry and Trade) has posted warnings on its website informing the public about unreliable multi-level marketing businesses.

Accordingly, a trustworthy multi-level marketing (MLM) business must first and foremost be one that conducts sales genuinely. That is, its core activity must be selling and distributing goods, not recruitment or attracting investment. A legitimate MLM business, fulfilling its sales function correctly, needs to meet the basic criteria of having good products; providing good distributor training; and primarily focusing on sales, not recruitment.

The Competition Authority has outlined five signs to identify unreliable multi-level marketing businesses. Firstly, if a business focuses solely on organizing recruitment events without providing sales training for distributors, caution is advised;

Secondly, when recruiting, businesses use various methods to trick participants into buying products or paying money, which requires caution. Illegal multi-level marketing businesses only survive on the money new members spend on products. The company profits from this money and also uses it to pay commissions to those who recruit. Such businesses will not survive if they cannot recruit more people or if those recruited do not buy products, because they do not focus on sales and have no revenue from product sales.

Thirdly, businesses that promise attractive returns are also unreliable. Since multi-level marketing is simply a form of selling and distributing goods, not an investment, income is only truly generated if goods are actually sold and those referred by the salesperson also sell goods.

Fourth, businesses that don't have good products are also unreliable. The nature of multi-level marketing is to introduce and share information about high-quality products in order to sell them to consumers. Therefore, if the products are not good, there's nothing to introduce or share, making it difficult to sell them and earn commissions.

Fifth, businesses that don't focus on sales and product distribution are unreliable. Multi-level marketing is a form of sales. Therefore, a business that is called a multi-level marketing business but doesn't focus on sales and product distribution cannot survive in the long run.

Deputy Head of the Economic Department of Thai Hoa Town, Le Sam: “The People's Committee of Thai Hoa Town has previously inspected, discovered violations, and imposed penalties on Giang Hoang Phuc establishment.”

Based on the five indicators provided by the Competition Authority, the activities at Hoang Giang Phuc facility in Thai Hoa town, operated by the multi-level marketing company Thien Ngoc Minh Uy, show signs of "irregularities".

Firstly, this organization offers attractive bait to entice members to recruit new members into their "network." For example, Mr. Cao Van Tho, former Chairman of the Fatherland Front Committee of Nghia Trung commune, successfully recruited four people and was appointed "Deputy Head of Business Department," receiving 42% of the profits from his own shares and those of others in the "network."

Secondly, this establishment uses attractive bait to entice those who believe in their "selling bones and stripping flesh" scheme to pay as much money as possible. For example, Ms. Nguyen Thi Huong paid 245 million VND; Ms. Dinh Thi Thuyen paid over 39 million VND; Mr. Cao Van Tho paid 127 million VND; Ms. NTT paid 114.2 million VND… These people, although issued "sales specialist" or "Deputy Head of Sales" cards, do not actually engage in sales; or more accurately, their "goods" are their own money, or the people they have lured.

Thirdly, this establishment offered completely unreliable benefits to lure people into becoming members. Regarding the unreliable information, the current Chairman of the Fatherland Front of Nghia Trung commune, Mr. Dinh Trong Tai, was absolutely correct in his analysis. While bank interest rates are around 0.9% per month, no business model can yield profits exceeding 25% per month. That can only be illegal business or fraud. And regarding the offered benefits, not only did those who fell into the trap speak out, but the owner of the establishment, Tran Van Cuong, also admitted it when speaking with Ms. Nguyen Thi Huong and Ms. Dinh Thi Thuyen.

The rice cookers and induction cookers from Giang Hoang Phuc establishment in Thai Hoa town, which some members purchased for use, are Made in China and of poor quality (the person in the photo is Ms. Nguyen Thi Huong).

Fourth, regarding goods, the multi-level marketing company Thien Ngoc Minh Uy, located at Hoang Giang Phuc, Thai Hoa Town, offers product packages including health care products and packages of rice cookers, infrared stoves, and ozone machines. Regarding health care products, this establishment was previously inspected by the Thai Hoa Town People's Committee, which found that employees providing services (massage, acupressure, etc.) did not possess the required professional licenses; the massage business did not meet the necessary infrastructure requirements. As for the rice cookers and infrared stoves, as witnessed at Ms. Nguyen Thi Huong's house, they were all labeled "Made in China" and were of poor quality.

Fifth, this company doesn't focus on sales at all. Evidence of this is that none of the "sales staff," including the "Deputy Head of Sales," actually sell any products.

Furthermore, investigations have confirmed that this establishment has committed numerous violations of the law. These include failing to provide training or instruction to its multi-level marketing members while simultaneously issuing them membership cards.

Issuing certificates without providing training and using them to deceive authorities during inspections is one of the illegal activities of Thien Ngoc Minh Uy Company.

Furthermore, there are signs of defrauding state agencies by providing false information and documents. Specifically, the authorities possess numerous "Basic Training Certificates on Multi-Level Marketing" that this establishment submitted during inspections. Authorities have verified this, and many individuals listed on the certificates have admitted to never having received any training.

And a fundamental principle in business is that buying goods and paying for them always go hand in hand. Here, Hoang Giang Phuc establishment presents a "pipe dream" of profit to sell goods, collect money, but do not deliver the goods. For vulnerable individuals, they either make promises or state that "once you've signed for the goods, there's no point in paying." For knowledgeable individuals or those with social connections who know how to rely on the law, this establishment has to accept a refund but still keeps 10% under the pretext of "company regulations" and "compensation for management, rent, administration, paperwork, etc." Frankly speaking, this is fraudulent behavior.

Ultimately, the pressing issues among the people caused by the Hoang Giang Phuc branch in Thai Hoa town, operated by the multi-level marketing company Thien Ngoc Minh Uy, have persisted for a long time. Therefore, it is time for law enforcement agencies to intervene!

Nhat Lan