HÀ NỘI — The Ministry of Industry and Trade has decided to set up an inspection team to supervise the multi-level marketing activities of Nhã Khắc Lâm Co., Ltd.

According to the ministry’s decision 1667/2017, Minister of Industry and Trade Trần Tuấn Anh asked the inspection team to examine and verify all multi-level marketing activities of the company.

All violations will be penalised as stipulated.

He also asked relevant authorities to take measures to protect the rights of those who were involved in multi-level trading with the company.

The team will be led by Lê Thị Phương Hoa, deputy chief inspector of the ministry. Representatives of the ministry’s Competitiveness Management Department, Marketing Management Department and Legal Department will join the team.

On May 10, the ministry’s Competition Authority sent a document with information of the operation of Nhã Khắc Lâm Co., Ltd to departments of industry and trade in localitites across the country.

The ministry affirmed that the company had not yet completed procedures to get a multi-level registration certificate, which meant it was not allowed to organise multi-level marketing activities.

The ministry required the departments of industry and trade in localities to closely monitor the operation of the company.

Nhã Khắc Lâm Co.,Ltd, formerly known as MTV Gano Excel Việt Nam Co., Ltd, is located on 631 Nguyễn Trãi Street, District 5, HCM City. The current legal representative of the company is Huỳnh Vĩnh Lợi, who is also deputy head of Thiên Ngọc Minh Uy Co., Ltd.

After amending the Business Registration Certificate at HCM City’s Department of Planning and Investment, the company undertook procedures to obtain the multi-level registration certificate. However, despite not completing procedures, the company knowingly implemented multi-level marketing activities.

Last month, Thiên Ngọc Minh Uy was fined a total of VNĐ1.5 billion (US$70,000) by the ministry for 80 separate offences, and earlier this year, it was fined VNĐ215 million ($9,590). The offences included breach of the contracts it signed with network members, failing to meet the level of required training for new members, operating without notifying the local authorities and violating label regulations on its goods.

The company was ordered to stop all multi-level marketing activities and was required to fulfil all obligations to members of its network. — VNS