MLM News

Tag: mlm law

  • Government holds the bill to check the ponzi scheme

    Government holds the bill to check the ponzi scheme

    The government has put on hold the review of the ponzi scheme bill,which was suppose to bring about more clarity to distinguish between a genuine MLM company and ponzi money circulating companies.

    A week after the arrest of Amway India chief executive Bill Pinckney, the Indian Direct Selling Association has sought amendments to the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, to protect legitimate direct selling.

    The Finance Ministry had started the process to amend Prize Chits and Money Circulation Schemes (Banning) Act, 1978 to check the menace of ponzi schemes which continue to defraud investors of their hard-earned money.

    The Ministry informed a recent meeting of representatives of central revenue intelligence and law enforcement agencies that the amendment bill “has been put on hold for the time being”, official sources said.

    It was also informed that an inter-ministerial group (IMG) formed under Additional Secretary, Department of Economic Affairs, is looking into all aspects including the amendment of the Act, they said.

    A ponzi scheme is a swindle in which quick return on an investment is offered. Major such scams being probed by CBI, Income Tax and other investigating agencies include those relating to Rose Valley and Saradha chit fund wherein investors lost about Rs 15,000 crore and Rs 2,500 crore respectively on false promise of good returns.

    The Finance Ministry had earlier obtained comments from the industry on the amendments to the Act for a framework for regulation of MLM and pyramid marketing companies, the sources said.

    It had also written to Indian Embassies and High Commissions of select countries to gather relevant legal and regulatory framework, and industry practises for direct selling and MLM or ponzi schemes, they said.

    Sources said a Cabinet note will be prepared for the Bill’s introduction in Parliament after getting IMG’s recommendations and after considering other legal and regulatory issues.

    Meanwhile, a new set of Standard Operating Procedures (SOP) is being formulated by the government for central and state law enforcement agencies for probing ponzi schemes.

    The issue of ponzi schemes and ways to check them is regularly being discussed in meetings of Economic Intelligence Council, headed by Finance Minister Arun Jaitley, on intelligence sharing and financial crimes, they said.

    source: economictimes

  • This Time Who Are You, Speakasian or Mavrodian?

    This Time Who Are You, Speakasian or Mavrodian?

    It’s not the first time when lot of Indians will lose their hard-earned money.  All MLM scams come in disguise but the modus-operandi has all been to loot gullible people. Infamous MLM companies like SpeakAsia, MMMIndia.in, Nmart, Gold Sukh, Fine India, All Hit Deals and lot more are not only looting people but they are also destroying the basic fabric of MLM in India.

    The only difference is that at the end of these short-lived ponzi scams, all that is left are Speakasians, Mavrodians etc. Who hope to get justice someday from Indian courts but here judgement takes long due course of time. All they can do is to wait with a faith to get their money back someday.

    It’s not their fault for being always super charged as Speakasians and Mavrodians. Without much knowledge about MLM business, even if they end-up making small fortune out of these short-lived ponzi schemes, they feel respected and elevated. And they have every right to feel so.

    The real fault lies with governments , who are not passing strict and strong laws to protect her citizens against fraudulent ponzi MLM schemes in India.

    Every time a big scam is unearthed, all we get to hear is that soon some strong mlm law is on the way to end this nonsense menace for all time.

    After that few meeting are held among RBI, SEBI, MCA and Finance Ministry but nothing has materialised till date.

    The need of time is to get strong MLM law in India and MLM people must join in to make this happen at the earliest.

    Your views are most welcomed! Do share your view on this subject.

  • सरकार ने मल्टीलेवल मार्केटिंग(MLM) कंपनियों के व्यापार को अप्रत्यक्ष रूप से झटका

    सरकार ने मल्टीलेवल मार्केटिंग (MLM) कंपनियों के व्यापार को अप्रत्यक्ष रूप से झटका देते हुए उत्पाद बिक्री के एवज में एजेंटों को दिए जाने वाले इंसेंटिव पर पाबंदी लगा दी है।

    मल्टी लेवल मार्केटिंग कंपनियां उत्पाद की कीमत के अलावा अन्य किसी भी तरह का कमिशन या प्रोत्साहन राशि नहीं दे सकेगा । कैबिनेट ने राज्य में डायरेक्ट सेलिंग बिजनस में लगी मल्टीलेवल मार्केटिंग कंपनियों के नियमन के दिशा निर्देशों को मंजूरी दे दी है। (more…)

  • MLM employees demand enactment of Central legislation in India

    MLM Employees

    While there is no guarantee of a NETWORK MARKETING business’s survival, the AITUC desire these companies to offer PF, gratuity and other advantages to their workers

    New Delhi: Many staff members of multi-level advertising firms organized a protest in the capital requiring enactment of a Central law which would determine and guard the interests of the real companies and workers working in the market, states PTI.

    The laborers under the aegis of the All India Trade Union Congress (AITUC) marched from Barakhamba to Jantar Mantar where they sat on a dharna.

    Dealing with the protesters, senior CPI leader Gurudas Dasgupta stated, “There are more than 20 lakh staff members working in the multi-level advertising industry and their number is bound to expand due to market competitors.”

    “Nonetheless, the current working conditions that are supplied to them by MNCs are very unsatisfactory. Income of multi-level advertising officials is incredibly questionable, where they have no security or social security.

    “We will battle to get advantages like provident fund, maternity advantage for the marketing people by the business,” he added.

    AITUC National Secretary Amarjeet Kaur alleged the high – power seven member inter-ministerial committee established by the Ministry of Customer Affairs with nominees from numerous ministries and the RBI does not have any type of staff member representation.

    “This lacuna will genuinely impact the quality of the fact finding report which will recommend and finally be submitted to the government by 31st August. Therefore, we do hope that the government will take proper actions to speak to all stakeholders,” she stated.

    MLM Employees