Previously, Ministry of Industry and Commerce issued a Decision on Direct Sale Business No. 0060/MOIC.DTD, dated 12 January 2017 to define principles, regulations, and measures in administering direct sale business, aiming to facilitate the buying and selling of goods in the society, as to protect national benefits and protect consumer interests, independent sellers, direct sale agents, and direct sale business operators.
When the decision had become officially effective, the Ministry found that it was not concise enough and it was inconsistent with the actual practice which creates gaps for fraud to deceive people to run or to invest in that business with both domestic and foreign companies. There were numbers of import companies claimed that they are able to bring foreign investors to run direct sale business and make huge benefits. Participants will need to pay membership fee monthly in order to learn about direct sale business, and at the end of the year, the company will share benefits from the sale. However, in practice, the running of such business is at high risk and affects some people who took part in such activity as they might not be able to claim back their loss or back any compensation if it’s a fraud.
Ministry of Industry and Commerce had recognized the seriousness of that issue and concerned about the welfare of people. Therefore, the Ministry had issued a Notification No. 0788/MOIC.DTD, dated 11 April 2017 on Temporarily Cease the Issuance of Direct Sale Business Permission Throughout the Country. The Ministry will revise regulations on direct sale business to be more concise with the practice and then the direct sale business will be permitted again in the future.
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