Wednesday, October 28 2020

VietNamNews

Users warned over new 'cashback' apps

Update: August, 20/2020 - 16:04

 

Some cashback apps lacked transparency and were risky to users. — File Photo

HÀ NỘI — The Việt Nam Competition and Consumer Protection Authority (VCCA) has issued a warning over cashback apps which lack transparency and showed signs of illegal multi-level marketing.

VCCA said that cashbank was an emerging model of business-to-consumer e-commerce and used as a way to attract customers.

Some e-commerce websites and apps were offering cashback with attractive rates from 80 per cent to 100 per cent, even higher, for each transaction. Some gave attractive commissions for those inviting new participants.

Such attractive offers would be in the form of earning reward points which could be redeemed for cash at very low rates, however.

VCCA also pointed out that cashback could be in the form of cryptocurrencies, such as GEM, CPB, Silling, USDT, ETH, ONE and VNDC which could be exchanged within the internal system.

These cryptocurrencies had not been recognised by laws as intermediaries for payment and users would not be protected by law in case of disputes, VCCA said.

For example, the My Aladdinz app claimed to be member of one of the largest companies in the world with a development history of 27 years. The app offered cashback at rates of up to 80 per cent. However, users must use Vietnamese đồng to buy the platform’s currency named GEM for transactions and the cashback was also in GEM. On this platform, GEM could be converted into another cryptocurrency named USDT and vice versa as an investment for profit.

Other platforms named in the warning by the VCCA included Payback VN and Tailoc888.

VCCA urged people not to participate in these cashback websites and apps.

Multi-level marketing businesses must comply with the Government’s Decree No 40/2018/NĐ-CP. — VNS

 

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