Different opinions on criminal handling of multi-level marketing violations

The Criminal Code supplements provisions on the Crime of violating regulations on multi-level marketing with a maximum penalty of 5 years in prison.

This morning (May 24), the National Assembly discussed the draft Law amending and supplementing a number of articles of the Penal Code No. 100/2015/QH13. The notable point is the law adding "Crime of violating regulations on multi-level marketing business".

Presenting the Report on explanation, acceptance and revision of the draft Law, Chairwoman of the National Assembly's Judicial Committee Le Thi Nga said that the majority of opinions of the National Assembly deputies proposed to add a new article on the Crime of violating regulations on multi-level business to criminally handle illegal multi-level business activities, avoiding consequences before handling the Crime of fraud and appropriation of property like some recent cases related to multi-level business. However, some opinions suggested not to add this provision.

Chairwoman of the National Assembly's Judiciary Committee Le Thi Nga presented a report explaining, accepting and revising the draft Law on the morning of May 24.

The National Assembly Standing Committee's viewpoint is that multi-level marketing is a modern business method, and if it complies with the law, it will be effective. However, if multi-level marketing violates the law, it will potentially cause very serious consequences.

In fact, recently, many multi-level marketing cases that violated the law have caused damage to tens of thousands of people, mainly poor people in rural areas.

“Therefore, accepting the opinions of the majority of National Assembly deputies and at the request of the Government, the draft Law has added Article 217a - Crime of violating regulations on multi-level business” - Ms. Le Thi Nga said.

Disagreeing with the above viewpoint, delegate Bui Van Xuyen - Standing member of the National Assembly's Law Committee said that the basis for adding the above regulation is unclear and the explanation is also unclear about the cause and how to handle it.

"The Criminal Code has removed the crime of illegal business because it is not suitable for the real situation when people have the right to freely do business in areas that are not prohibited by law. Now adding the crime of violating regulations on multi-level business is not suitable" - Mr. Xuyen expressed his opinion.

National Assembly Delegate Bui Van Xuyen.

According to this delegate, with the design as drafted, it is not certain that it can be handled because they are granted full business registration. Moreover, the highest penalty of only 5 years in prison is much lighter than the crime of Fraudulent appropriation of property; Crime of using computer networks, telecommunications networks, the Internet or digital devices to commit acts of property appropriation with a penalty of up to 20 years and life imprisonment.

“Adding new crimes can create loopholes as “hiding places” for subjects to avoid being prosecuted for the crime of fraud and appropriation of property; the crime of using computer networks and telecommunications networks to appropriate property” – delegate Bui Van Xuyen noted.

According to delegate Bach Thi Khuong Thuy, disguised multi-level marketing has been taking place in recent times with sophisticated tricks that prey on greed, exploit legal loopholes to profit, and defraud and appropriate property. Reality shows that the situation is complicated and has serious consequences, so adding the above crime to the law is necessary.

However, according to delegate Thuy, it is necessary to strictly handle the head of the organization because multi-level marketing has many levels, in reality other participants must sign contracts and revenue is transferred to the head./.

According to VOV