Strictly manage multi-level marketing activities

In addition to licensed multi-level marketing activities that are basically managed by Decree 18/2023/ND-CP on the management of multi-level marketing activities, illegal and disguised multi-level marketing models are becoming increasingly complex, causing instability in the business environment and causing damage to consumers. Along with the requirement that localities strengthen the dissemination and propaganda of laws to the people, the Ministry of Industry and Trade is continuing to implement more drastic measures to effectively regulate these activities.

Although authorities have issued many warnings, many people still blindly become victims of fraudulent financial investment tricks.

There are currently 15 businesses licensed to sell multi-level marketing in the province, with a total of more than 21,000 participants. From 2022 to present, every year, the Department of Industry and Trade has taken turns coordinating with sectors such as the police, market management and localities to organize conferences to disseminate legal knowledge and identify signs of disguised multi-level marketing. In particular, the department has promoted propaganda in "hot" areas with the appearance of conferences and seminars that take advantage of introducing promotional products to sell high-priced, unknown-origin goods.

According to the Department of Industry and Trade, from 2022 to present, the unit has coordinated to organize conferences to disseminate and propagate the law to 5,000 officials, civil servants and local people. The functional departments have also compiled and distributed tens of thousands of leaflets and propaganda documents on multi-level marketing activities. Along with that, the functional units have coordinated with the media agencies to open many specialized pages and columns to propagate the law on multi-level marketing activities, helping people to improve their understanding and vigilance against illegal multi-level marketing tricks.

In particular, at these conferences, the reporters analyzed and pointed out many tricks, and at the same time warned officials, civil servants, and people about a number of business models with signs of multi-level transformation that are being monitored by authorities. Typically, Thanh Hoa Provincial Police gave a number of examples of multi-level business, multi-level forms, fraud through virtual currency exchanges, websites, technology applications, and even functional food trading. In particular, the unit also warned about the model of Heygen Company with the formation of 10 levels of "huge" rewards and "attractive" team management profits to attract participants. Meanwhile, according to the National Competition Commission (Ministry of Industry and Trade), Heygen Company is not on the list of registered operations under the multi-level model. Currently, authorities are suspecting that a number of organizations and individuals are taking advantage of people's lack of knowledge to mobilize capital and invest in the form of multi-level to defraud and appropriate property.

However, according to the Ministry of Industry and Trade, although the Departments of Industry and Trade of provinces and cities have actively coordinated with police agencies to combat and prevent crimes related to multi-level marketing, these types of businesses still exist and operate increasingly sophisticatedly, with many new forms of transformation, especially those on the internet such as virtual currency, forex, financial investment... causing serious consequences and negative public opinion in the community. Therefore, in order to continue to improve the effectiveness of managing multi-level marketing activities, improve the effectiveness of fighting and preventing crimes related to multi-level marketing activities, on October 29, the Minister of Industry and Trade issued Document No. 8645/BCT-CT requesting units under the Ministry and the Departments of Industry and Trade of provinces and centrally run cities to continue to implement tasks to continue to strengthen the management of multi-level marketing activities.

Accordingly, the Minister of Industry and Trade assigned the National Competition Commission to review, propose amendments and complete legal regulations on the management of multi-level marketing activities, in order to meet the requirements of strict management of security and order for multi-level marketing activities (especially for new licensing cases); continue to monitor law enforcement in the management of multi-level marketing activities for the Departments of Industry and Trade; coordinate with public security agencies in the fight against crimes in multi-level marketing activities.

In particular, the Ministry also requested relevant units under the Ministry such as the General Department of Market Management; the Legal Department; the Department of E-commerce and Digital Economy and the Department of Industry and Trade of localities to continue to strengthen propaganda activities, disseminate legal knowledge to raise people's awareness of multi-level sales activities; review, advise on completion, propose amendments and supplements to legal documents on the management of multi-level business activities; at the same time, step up inspection, examination and handling of violations of the law in this activity.

Article and photos: Tung Lam

Source: https://baothanhhoa.vn/quan-ly-chat-che-hoat-dong-kinh-doanh-da-cap-bien-tuong-232482.htm