Violation of 920 million 3 companies has violated sales at several levels

(HNMO) – Based on the result of the inspection, the Department of Competition and Consumer Protection (Ministry of Industry and Trade) has just given the decision to penalize 3 multi- level sales companies with a total amount of 920 million.

According to the Department for Competition and Consumer Protection, the Department sanctioned the International Trade Production Group of Greenland (Pho Yen Town, Thai Nguyen Province) for 510 million dong Violations in multi-level sales activities, such as multi-level sales activities at locations without certification of receiving files from multi-level sales activities of provincial sector and trade departments; Failure to comply with the obligation to change or supplement the multi-level sales registration certificates when making changes or additions in connection with application files for multi-level sales registration certificates according to the regulations. of the law; The incorrect or incomplete performance of the basic training obligation for participants at multiple levels, in accordance with the legal provisions.

(Illustration, source: internet)

Moreover, this company is wrongly in charge of issuing membership cards for multi-tier sales channels to participants; Inappropriate or incomplete reporting to competent government institutions according to the legal provisions; A person who wants to participate in a multi-level sale must purchase a quantity of goods in any form in order to be eligible to participate in a multi-level sales network.

It does not stop there, the company also offers false or misleading information about the use of goods to entice others to participate in multi-level sales; Maintain more than one multi-level business position for the same multi-level sales employee.

The Competition and Consumer Protection department also issues a decision to withdraw the certificate of registration of multi-level sales activities for this company.

"The withdrawal of a certificate does not release this company from its legal obligations, including the obligation to ensure the legitimate interests of the multi-level salesperson in the multi-level sales network." Said the Competition and Consumer Protection Department.

The Competition and Consumer Protection Division has fined VND 170 million with Thuong Xuan Cosmetics Co., Ltd. (Phu Nhuan district, Ho Chi Minh City). Cause of failure or improper performance by this company of obligations in connection with the withdrawal of multi-level sales membership cards according to the legal provisions; Signing contracts with participants at multiple levels, not in the form of written documents or not fully contain the basic content as prescribed by law.

With some violations as improperly implemented, insufficient publicity at the head office and offer for those who intend to join the multi-level sales network of information and documents as prescribed by law; Failure to fulfill or incorrect performance or non-fulfillment of obligations in connection with the withdrawal of multi-level sales membership cards in accordance with the legal provisions; Payment of commissions, bonuses and other economic benefits for distributors is more than 40% of sales in the year …, Unicity Marketing Vietnam Ltd. (Tan Binh District, Ho Chi Minh City) fines 240 million.


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