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Over 200 MLM companies still in business

Published : 27 Sep 2019 09:10 PM | Updated : 05 Nov 2020 06:05 PM

Despite the government’s strict restriction, a good number of Multi-Level Marketing (MLM) companies are still carrying out their illegal activities across the country changing their business method. Allegations have been raised that these MLM companies are cheating common people in the name of e-commerce, e-business, telemarketing etc.

Sources concerned said that such companies acting as online business platform claim different foods, food supplements, cosmetics, herbal medicine and other items as their products, though the country’s medicine ordinance 1982 strictly prohibits sale of food supplements and medicines without any prescription.

There are allegations that these MLM companies are not caring for any government license. These companies, are now growing smoothly like mushrooms in the villages. According to commerce ministry sources, in 2002, there were only 16 MLM companies including Destiny in the country. The number stood at 24 in 2006. But at present, more than 200 MLM companies are conducting their business in the country.

On the other hand, a good number of Indian, Malaysian, Sri Lankan and Pakistani companies are now continuously entering in the country’s market by managing Multipurpose Certificates or only trade licenses with the help of some corrupt officials. A good number of MLM companies were found in the capital’s Bijoynagar, Kakrail, Paltan, Karwan Bazar and other parts. These MLM companies were found luring common people with hopes of making them rich overnight.

When any individual makes any invest in such companies, they are provided a package of products.Price of these unusual products even skyrockets comparing to other existing related products in the local market, which is not only a fraudulence of the customers, but also revenue loss for the government.

While searching how these companies get legal documents it was known that, such companies make a condition of not giving any low quality goods, services of information they collect legality to operate their business.But avoiding license regulation, collecting joint stock approval and company name clearance, they open their companies. During the approval of the ‘Certificate Incorporated' in the product category they mention export-import, herbal products production, IT software, multi products marketing, travel agencies, gold business, and others as business method.

However, such business does not have any similarity with the country’s existing business, and not even any legal validity but is earning thousands of crores from the country.Recently a government intelligence agency sent a list of 165 companies to Anti-Corruption Commission (ACC) to find out whether they are currency smugglers. A list of 58 concerned MLM businessmen is now at the country’s major international airports, and land ports.

However, on condition of anonymity, a concerned source informed that before the list was sent out, at least 15 MLM businesspersons escaped from the country.Citing that MLM is a controversial business, the government will not give any kind of legality to conduct such business across the country. To this end, a commerce ministry additional secretary said, “This is a fraud business, not only in our country but in many other countries, this has been identified against the tradition. The government will not give any license to the MLM companies”.