To identify illegal multi-level marketing

Sinh viên chia sẻ thường bị các công ty đa cấp rủ rê với mức phí phải đóng từ 15 - 30 triệu đồng - Ảnh: CÔNG TRIỆU — Students shared that they are often lured by multi-level marketing companies with fees ranging from 15 to 30 million VND - Photo: CONG TRIEU

Multi-level marketing is not suitable for students because they have to constantly meet customers and introduce products in order to sell them. This takes a lot of time, and now they can’t focus on studying.

Attorney VO DAN MACH

"Identifying illegal multi-level marketing and prevention skills" is the topic of a legal dissemination session on consumer rights protection recently organized by the Ho Chi Minh City Vietnam Student Association, the National Competition Commission (Ministry of Industry and Trade) and the Vietnam Multi-level Marketing Association.

Ms. Hoang Thi Thu Trang (National Competition Commission) said that taking advantage of the psychology of wanting to share the burden with the family and gaining experience while still studying are the reasons why students have become the top target chosen by many illegal multi-level marketing companies.

Multi-level marketing is recognized by law and licensed to operate on the condition that it is a genuine multi-level marketing company. The condition is to have good products, prices that match the value of the products, and good training for participants. Participants in the sales network receive commissions, share profits... from their sales and those of everyone in the network.

While the most obvious illegal MLM is always the requirement to deposit, pay money or buy new products to become a member. Instead of selling products and making profits, illegal MLM often spends money, focuses on recruiting, and "shares economic benefits" with anyone who can attract new members to join the system.

According to the speakers, the common scenario of illegal multi-level marketing is often to show off and introduce products, leading to psychological attacks. They use "decoys" from staged evidence to make customers immediately think "can't miss this opportunity" and finally close the deal.

Master, lawyer Vo Dan Mach - chief of office, general secretary of the Vietnam Multi-level Marketing Association - informed that currently there are only 20 multi-level marketing companies licensed to operate nationwide. Despite many warnings and propaganda, why are students still the target of illegal multi-level marketing? Explaining, lawyer Mach said that in addition to the psychology of wanting to earn money to help their families, it also stems from the weakness that students can easily ask their parents for money, and their existing assets can be easily mortgaged, making them "easy to lure"!

And an address that was immediately given to the students in Ho Chi Minh City right at the meeting was No. 7, Nguyen Van Troi (Phu Nhuan District) of the representative office of the Vietnam Multi-Level Marketing Association in Ho Chi Minh City. Any information related to the infringement of rights, signs of fraud, enticement, or forced participation when sent to the association "will be handled immediately".

"As a member of the association, we will immediately handle complaints to avoid damage to participants because each multi-level marketing company deposits 10 billion VND to resolve this matter. As for companies that are not part of the association, we will forward them to the police and related units to ensure the rights of participants" - lawyer Mach informed.

Don't fall into the illegal multi-level pit

"Identifying illegal multi-level marketing and prevention skills" is a topic recently organized by the Ho Chi Minh City Vietnamese Student Association, the Vietnam Multi-level Marketing Association and the National Competition Commission (Ministry of Industry and Trade) on the afternoon of December 22.

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