Bangladesh all set to form a strict MLM law
Millions of Bangladeshis lost their hard-earned money to fraud MLM companies. After massive allegations of cheating people by MLM companies, the Ministry of Commerce, Bangladesh, is all set to form a strict all in coming months. In future all MLM companies will come under tough monitoring.
Some Highlights of legislation draft:
- Sale of any imaginary product, tangible assets like trees, apartment, and land etc, any kind of bonus scheme, collection or disbursement of funds by installment or savings, lottery ticket selling, trading of gold/platinum/bronze are remarkable fields where the MLM companies would not be allowed to do business.
- In the new law, it has been proposed to allow the controller to punish the unscrupulous people of the companies with five years’ prison or financial punishment or both.
Mustafa K Mujeri, director general of government-sponsored Bangladesh Institute of Development Studies (BIDS) said “The lawshould not be prepared with inputs from MLM companies, as it will uphold their interest”.
The new law will make it mandatory for the all MLM companies to apply for the licence before their operations from the authority, the procedure will be strict and will include checking of products, quality of goods and price tag offered by the company, if products are found sub-standard, the concern authority will file a case against the company.
Companies like Unipay2u & Speak Asia got away easily, due to the loop holes in the law. Currently Unipay2u’s bank accounts have been frozen by the authorities, where as in Speak Asia’s case, there is no update neither from the authorities nor from the company. When finally law is enacted, it will be interesting to see how Speak Asia will apply for the license, as under new law, sale of any imaginary product will not be permitted.
We have some information that on the similar lines, the ministry of corporate is looking forward to draft a strict MLM law in India.
To Your Success in Business & Health in Life,Ak Sharma Editor,