|The Việt Nam Competition and Consumer Protection Authority (VCCA) has warned about online multi-level marketing schemes. — File Photo|
HÀ NỘI — The Việt Nam Competition and Consumer Protection Authority (VCCA) has issued a warning about online multi-level marketing schemes.
These models were being advertised on social networks like Facebook, Zalo, Viber and TelegramX as “playgrounds” for “young start-ups” or “entrepreneurs who want to connect globally”. Users can “trade and share opportunities” of investing in cryptocurrencies through e-commerce platforms, decentralised social networks, digital ecosystems or affiliate marketing models.
Websites advertised included Onelinknetwork.com, ChiliMall.net, Vitae.co, Crowd1.com, and Winvest.io.
These websites advertised many benefits, especially very high commissions and incomes.
However, the investment sums of the participants were not recorded on any official documents but only through the participants’ account displayed on the websites’ interface. Their servers were usually located in foreign countries and the owners were not present in Việt Nam or had legal status according to Việt Nam’s established laws.
The authority said that these operations were likely to be pyramid schemes and were prohibited according to the established regulations.
VCCA also sent a warning about multi-level recruitment which could violate the law.
The job advertisements promised high incomes and flexible hours. But applicants would be forced to pay a huge sum of money upfront for training or buying documents, for example, and might get a commission if they introduced other applicants.
VCCA said that multi-level companies must register their operations following the Government’s Decree No 40/2018/NĐ-CP dated March 12, 2018 about managing multi-level businesses.
The latest updates from the Ministry of Industry and Trade showed that there were only 22 multi-level companies certified following Decree No 40. The list is regularly updated on the VCCA’s website at the address vcca.gov.vn. — VNS