Thursday, September 29 2016

VietNamNews

Unlicenced marketing firms caught

Update: July, 23/2016 - 09:17

HÀ NỘI — The Ministry of Industry and Trade’s Competitive Management Department has announced a list of 16 multi-level marketing companies without business licences early this week.

The named companies have been operating in Hà Nội and central provinces of Quảng Nam, Nghệ An, Thanh Hóa and Bình Định. In Hà Nội alone, 10 businesses were discovered including Everrichs Global Company, Merro Trade Company, Focus Việt Nam International Trade Company, Blue Ocean International Investment Company, Amkey Việt Nam Company, Lotuc Việt Nam Trade Development Company, Union Việt Nam Investment and Development Company, Big Forest Company, KDM Việt Nam Company and Thiên Phương Việt Nam Company.

The remaining firms in other provinces include individual household Trương Thị Kim Nguyệt in Quảng Nam, Trường Sinh Science and Technology Company in Nghệ An, Phúc Gia Bảo Investment and Trade Company in Bà Rịa – Vũng Tàu, Hải Nam Quy Nhơn Company in Bình Định and Hợp Phát Company in Thanh Hóa.

The department said most of the businesses violated regulations on business licences. Others were fined for providing information which could cause misunderstandings about their products.

It has co-operated with authorities in Bình Định and Thanh Hóa provinces to give fines to Hải Nam Quy Nhơn and Hợp Phát companies. It also decided to terminate operations of Wincom Corporation in HCM City.

Previously, the department gave fines for several multi-level marketing companies for violations including a lack of transparency, tax reports, website registration and contracts.

Management agencies asked multi-level marketing companies to submit information on their company name, headquarter address, branches and representative offices.

In addition, the firms have to report their figures of turnover, commission, bonuses and other economic benefits in the first half of the year.

Multi-level marketing companies also have to report the number of conferences and financial reports in 2015.

The ministry promulgated a directive on enhancing check-ups and supervision on multi-level marketing companies.

It has proposed to the Government to review the circular on multi-level marketing with an aim to tighten the operation to prevent losses for the public.

In February, Hà Nội-based multi-level marketing Liên Kết Việt JSC was discovered to have defrauded 60,000 customers.

The ministry then established an inspection team to oversee the operations of multi-level marketing firms. — VNS

 

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