Recently, the National Competition Commission announced the results of its inspection and examination of multi-level marketing activities of many companies. Notably, these are all leading multi-level marketing companies in Vietnam.
Specifically, through specialized inspection of compliance with the law on multi-level marketing business , on December 19, 2024, the Chairman of the National Competition Commission issued a decision to administratively sanction Herbalife Vietnam Company Limited (headquarter address: 26 Tran Cao Van Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City) in the amount of VND 205 million.
Because, Herbalife Vietnam did not conduct or did not properly conduct basic training for multi-level marketing participants as prescribed by law; assigned trainers who did not meet the conditions to conduct basic training for multi-level marketing participants;
This company also did not comply with the operating rules and registered bonus plans; and did not properly fulfill reporting obligations in multi-level sales activities as prescribed by law.
Based on the decision to impose a penalty, on December 27, 2024, the Chairman of the National Competition Commission issued an Inspection Conclusion on compliance with the law on multi-level marketing at Herbalife Vietnam, and requested the implementation of measures and reporting to the National Competition Commission before January 27, 2025.
Similarly, the National Competition Commission issued a decision to impose an administrative penalty on Vietnam Lien Ket Group Joint Stock Company (headquarter address: Lot C16/D21 Cau Giay New Urban Area, Dich Vong Hau Street, Cau Giay District, Hanoi ) in the amount of VND 95 million.
The reason is that Vietnam Lien Ket Group has committed violations such as: not properly implementing the registered operating rules; not supervising the activities of multi-level sales participants to ensure that multi-level sales participants properly implement the company's operating rules.
On December 10, 2024, the Chairman of the National Competition Commission issued an inspection conclusion on compliance with the law on multi-level marketing at Vietnam Lien Ket Group Joint Stock Company.
In addition to the two companies above, the National Competition Commission also discovered a series of violations at Perfect Global Company Limited (headquartered at 104 Mai Thi Luu, Da Kao Ward, District 1, Ho Chi Minh City).
This company signed a multi-level marketing contract that did not include all the basic content as prescribed; did not notify the Ministry of Industry and Trade on time when there were changes in the list of trainers; and did not properly implement the registered operating rules.
Perfect Global also did not notify the local Department of Industry and Trade when organizing conferences, seminars, and training courses that are required to be notified according to regulations; did not carry out procedures to amend and supplement the multi-level sales registration certificate according to regulations.
From the above violations, the National Competition Commission also issued a decision to administratively fine Perfect Company Limited VND 215 million.
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