To identify illegal multi-level marketing

Sinh viên chia sẻ thường bị các công ty đa cấp rủ rê với mức phí phải đóng từ 15 - 30 triệu đồng - Ảnh: CÔNG TRIỆU — Students share that they are often lured by multi-level marketing companies with fees ranging from 15 to 30 million VND - Photo: CONG TRIEU

Multi-level marketing is not suitable for students because it requires constantly meeting with clients and making sales pitches. This is very time-consuming, leaving them with no time to focus on their studies.

Lawyer VO DAN MACH

"Identifying fraudulent multi-level marketing schemes and prevention skills" was the topic of a recent legal awareness session on consumer rights protection organized by the Ho Chi Minh City Student Union, the National Competition Commission ( Ministry of Industry and Trade ), and the Vietnam Multi-Level Marketing Association.

Ms. Hoang Thi Thu Trang (National Competition Commission) stated that exploiting the desire to share the burden with their families and the hope of gaining experience while still studying are the reasons why students are the primary target for many unscrupulous multi-level marketing companies.

Multi-level marketing (MLM) is legally recognized and licensed, provided it is a legitimate MLM company. This includes having good products, prices that reflect their value, and effective training for participants. Members of the sales network receive commissions and profit sharing from their own sales and those of others in the network.

While the most easily recognizable aspect of illegitimate multi-level marketing (MLM) is the requirement to pay a deposit, make a payment, or purchase goods to become a member, instead of selling products and making a profit, they typically spend money, focus on recruitment, and "share economic benefits" with those who bring new members into the system.

According to the speakers, the common scenario of illegal multi-level marketing schemes is usually to show off products and manipulate people's psychology. They use "decoys" with fabricated evidence to make customers think, "I can't miss this opportunity," and ultimately close the deal.

According to Vo Dan Mach, a lawyer and chief of staff and general secretary of the Vietnam Multi-Level Marketing Association, only 20 multi-level marketing companies are currently licensed to operate nationwide. Despite numerous warnings and awareness campaigns, why are students still targeted by illegal multi-level marketing schemes? Lawyer Mach explains that besides the desire to earn money to support their families, students also have the vulnerability to easily ask their parents for money and readily mortgage their existing assets, making them "easy targets"!

And one address immediately recommended to students in Ho Chi Minh City at the meeting was 7 Nguyen Van Troi Street (Phu Nhuan District), the representative office of the Vietnam Multi-Level Marketing Association in Ho Chi Minh City. Any information related to infringement of rights, signs of fraud, enticement, or coercion to participate, when sent to the association, "will be processed immediately."

"As members of the association, we will handle complaints immediately to avoid losses for participants, as each multi-level marketing company has deposited 10 billion VND to resolve such matters. For companies not belonging to the association, we will forward the cases to the police and relevant agencies to ensure the rights of participants are protected," lawyer Mach stated.

Don't fall into the trap of illegal multi-level marketing schemes.

"Identifying Illegitimate Multi-Level Marketing Schemes and Skills to Avoid Them" was the topic of a workshop organized by the Ho Chi Minh City Student Association, the Vietnam Multi-Level Marketing Association, and the National Competition Commission (Ministry of Industry and Trade) on the afternoon of December 22nd.

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