Models that take advantage of multi-level marketing methods to attract participants still exist and cause negative public opinion in the community. — Photo hanoimoi.vn

The Ministry of Industry and Trade (MoIT) has asked departments of industry and trade of provinces and cities to tighten the management of multi-level marketing activities in Việt Nam.

The move was part of a document signed by Minister of Industry and Trade Nguyễn Hồng Diên on October 29.

The MoIT reported that while legal multi-level marketing activities are strictly managed, the forms of transformation based on the multi-level marketing model were still complicated. Models that take advantage of multi-level marketing methods to lure in participants still exist and cause negative public opinion in the community.

In recent years, the MoIT and the departments of industry and trade of provinces and cities have actively coordinated with police agencies to combat and prevent crimes related to multi-level marketing, but these subjects are still operating in increasingly sophisticated ways, with many new forms of transformation.

To improve the effectiveness of managing multi-level sales activities and efficiency of fighting and preventing crimes related to multi-level marketing activities, the MoIT requested the National Competition Commission to review, amend and perfect legal regulations on multi-level marketing activities.

The MoIT also asked departments of industry and trade of provinces and cities to review and reduce administrative procedures and regulations in multi-level marketing, strengthen inspection and examination work and strictly handle violations.

The General Department of Market Management has been suggested as the body to take the lead in advising on the development and completion of regulations on administrative sanctions for violations in multi-level marketing activities. They would also actively inspect activities of multi-level marketing organisations and individuals and strictly handle violations.

The ministry also asked the Department of E-Commerce and Digital Economy to coordinate and support the National Competition Commission in implementing administrative procedures in multi-level marketing activities on the online public service portal of the Ministry of Industry and Trade. — VNS