channelnewsasia.com:
The Consumers Association of Singapore (CASE) received more than 160 complaints against multi-level marketing (MLM) firms between January and September this year, which is more than double the number received during the whole of 2008.
Three directors of MLM firm Sunshine Empire are currently on trial for running a fraudulent company, falsifying accounts and making false capital declarations, and the saga has left a scar on the industry.
“We feel that all these bad apples are tainting the industry, so much so that the livelihoods of half a million people who are involved in the industry are put at risk. So we are committed to weed them out,” said Leo Boon Wan, chairman, Direct Selling Association of Singapore (DSAS).
DSAS has teamed up with CASE in a bid to improve the direct-selling industry.
The organisations have submitted joint recommendations to the Ministry of Trade and Industry on amendments to the Multi-level Marketing and Pyramid Selling Act – which oversees direct-selling in Singapore.
These include simplifying definitions, identifying the types of products under the MLM umbrella, and providing investment tips for new marketers.
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