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30 November 2016

10-Sep-2016  NEW DELHI (Govt.of India) New MLM Guideline 2016  :-  Government issues model guidelines for states to curb Ponzi schemes in India. The Rs 10,000-crore Indian direct selling industry could soon come under the stringent Consumer Protection Act, 1986, as the government on Monday unveiled a series of guidelines for states to regulate the sector.
In an attempt to cleanse the sector, the guidelines have prohibited use of pyramid structure and money circulation scheme in any direct selling company, besides ensuring a safety net for consumers through multiple steps.
The move comes two years after William Pinckney, managing director & chief executive officer (CEO) of the country’s largest direct selling company Amway was arrested for unethical circulation of money under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
The arrest had put the spotlight squarely on the domestic direct selling market and its operators, who’ve claimed all along that the 1978 Act unfairly targets them, bundling them with fraudsters.
“Direct selling means marketing, distribution and sale of goods or providing of services as part of a network of direct selling other than under a pyramid scheme,” the guidelines said.
Pyramid schemes or money circulation schemes have the same meaning as defined under Prize Chits and Money Circulation Schemes (Banning) Act, 1978, the guidelines said.
While disallowing a pyramid structure, the guidelines have defined such a scheme. A ‘pyramid-scheme’ is a multi-layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly as a result of enrolment, action or performance of additional subscribers to the scheme.
But direct sellers have to comply with various conditions to operate as legitimate players in the country, the guidelines said. One is direct sellers have been barred from charging any entry fee from agents or compelling them to buy back unsold stock.
“These entities will have to enter into an agreement with direct sellers or agents, and give full refund or buyback guarantee for goods and services sold to them,” the guidelines said.
It also mandates firms to constitute a grievance redressal committee to protect consumers.
It has also laid down a remuneration system for agents engaged by direct sellers.
The guidelines lay down among other things features like mandatory carrying of identity (ID) card by all sellers and not visiting a customer’s place without prior appointment.
It also says that direct sellers shall inform the prospective customers about all the procedures for cancellation of an order, refund of money and return of the product, etc.
The Direct Selling Guidelines 2016 framework was released by the Food & Consumer Affairs Minister Ram Vilas Paswan and has been sent to the states and Union Territories for adoption.
They bar direct selling companies from charging any entry fee from agents or compelling them to buyback unsold stocks.
These entities will have to enter into an agreement with direct sellers or agents and give full refund or buyback guarantee for goods and services sold to them.
It has also laid down remuneration system for the person engaged by direct selling firms on sharing of incentives, profit and commission.
The guidelines have also made provision for appointment of monitoring authority at both central and state level to deal with the issues related to direct selling.
The direct selling industry meanwhile, wholeheartedly welcomed the new guidelines as a much-needed move to boost the industry which employs large number of unemployed youth and women.
“The guidelines on direct selling, issued by the ministry of consumer affairs, represent an important step which will safeguard the interests of consumers, as well as identify and help protect ethical direct selling companies. We believe it will spur the growth of direct selling in India and drive entrepreneurship,” Anshu Budhraja, CEO, Amway India, said.
Vivek Katoch, director-corporate affairs, Oriflame India said that the direct selling industry now has an operational and definitional clarity and what makes us more relaxed is that e-commerce websites won’t be able to sell the products of direct selling companies without their approval.
Jitendra Jagota, chairman, Indian Direct Selling Association said that the association welcomes the guidelines with open arms, while Amit Chadha from the same organisation said that now a exhaustive legislation for direct selling is awaited which would further strengthen the position of the industry having potential to reach Rs 15,000 crore mark by 2019-20.
“It would be important that these guidelines also get statutory teeth and be anchored to the Consumer Protection Act itself,” Shilpa Gupta, director-regulatory services, PwC said.
Industry body, Ficci hoped the guidelines would bring regulatory clarity for the sector. 
Source :-  www.mlmnewspaper.com   www.business-standard.com/article/economy-policy/new-guidelines-to-curb-ponzi-schemes-regulate-direct-selling-116091201406_1.html

Indian Govt. issues new guidelines to regulate mlm Direct Selling Companies in India and states to curb Ponzi schemes

10-Sep-2016  NEW DELHI (Govt.of India) New MLM Guideline 2016  :-  Government issues model guidelines for states to curb Ponzi schemes in India. The Rs 10,000-crore Indian direct selling industry could soon come under the stringent Consumer Protection Act, 1986, as the government on Monday unveiled a series of guidelines for states to regulate the sector.
In an attempt to cleanse the sector, the guidelines have prohibited use of pyramid structure and money circulation scheme in any direct selling company, besides ensuring a safety net for consumers through multiple steps.
The move comes two years after William Pinckney, managing director & chief executive officer (CEO) of the country’s largest direct selling company Amway was arrested for unethical circulation of money under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
The arrest had put the spotlight squarely on the domestic direct selling market and its operators, who’ve claimed all along that the 1978 Act unfairly targets them, bundling them with fraudsters.
“Direct selling means marketing, distribution and sale of goods or providing of services as part of a network of direct selling other than under a pyramid scheme,” the guidelines said.
Pyramid schemes or money circulation schemes have the same meaning as defined under Prize Chits and Money Circulation Schemes (Banning) Act, 1978, the guidelines said.
While disallowing a pyramid structure, the guidelines have defined such a scheme. A ‘pyramid-scheme’ is a multi-layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly as a result of enrolment, action or performance of additional subscribers to the scheme.
But direct sellers have to comply with various conditions to operate as legitimate players in the country, the guidelines said. One is direct sellers have been barred from charging any entry fee from agents or compelling them to buy back unsold stock.
“These entities will have to enter into an agreement with direct sellers or agents, and give full refund or buyback guarantee for goods and services sold to them,” the guidelines said.
It also mandates firms to constitute a grievance redressal committee to protect consumers.
It has also laid down a remuneration system for agents engaged by direct sellers.
The guidelines lay down among other things features like mandatory carrying of identity (ID) card by all sellers and not visiting a customer’s place without prior appointment.
It also says that direct sellers shall inform the prospective customers about all the procedures for cancellation of an order, refund of money and return of the product, etc.
The Direct Selling Guidelines 2016 framework was released by the Food & Consumer Affairs Minister Ram Vilas Paswan and has been sent to the states and Union Territories for adoption.
They bar direct selling companies from charging any entry fee from agents or compelling them to buyback unsold stocks.
These entities will have to enter into an agreement with direct sellers or agents and give full refund or buyback guarantee for goods and services sold to them.
It has also laid down remuneration system for the person engaged by direct selling firms on sharing of incentives, profit and commission.
The guidelines have also made provision for appointment of monitoring authority at both central and state level to deal with the issues related to direct selling.
The direct selling industry meanwhile, wholeheartedly welcomed the new guidelines as a much-needed move to boost the industry which employs large number of unemployed youth and women.
“The guidelines on direct selling, issued by the ministry of consumer affairs, represent an important step which will safeguard the interests of consumers, as well as identify and help protect ethical direct selling companies. We believe it will spur the growth of direct selling in India and drive entrepreneurship,” Anshu Budhraja, CEO, Amway India, said.
Vivek Katoch, director-corporate affairs, Oriflame India said that the direct selling industry now has an operational and definitional clarity and what makes us more relaxed is that e-commerce websites won’t be able to sell the products of direct selling companies without their approval.
Jitendra Jagota, chairman, Indian Direct Selling Association said that the association welcomes the guidelines with open arms, while Amit Chadha from the same organisation said that now a exhaustive legislation for direct selling is awaited which would further strengthen the position of the industry having potential to reach Rs 15,000 crore mark by 2019-20.
“It would be important that these guidelines also get statutory teeth and be anchored to the Consumer Protection Act itself,” Shilpa Gupta, director-regulatory services, PwC said.
Industry body, Ficci hoped the guidelines would bring regulatory clarity for the sector. 
Source :-  www.mlmnewspaper.com   www.business-standard.com/article/economy-policy/new-guidelines-to-curb-ponzi-schemes-regulate-direct-selling-116091201406_1.html

Posted at 9:01 AM |  by Mayank Pratap Singh Rajawat

31 August 2016

  29/Aug/2016 New Delhi :  To protect public from fallacious ponzi mlm schemes being peddled as direct marketing, a replacement set of tips is probably going to be place in situ before long to manage this sector.



The Department of consumer Affairs Ministry has finalised the rules for the Rs 72000 crores large integer direct selling industry (also known as mlm Network marketing business or multi level marketing) and also the same is predicted to be notified.

The guidelines can outline direct marketing and the way it's totally different from the opposite cash current theme. The direct marketing must always be joined with merchandise and there ought to be a buyer-seller agreement, sources aforementioned.
as mlmnewspaper.com 
In a meeting with business stakeholders control last month, shopper Affairs Minister Ram Vilas Paswan had mentioned the draft tips ready by the inter-ministerial panel and took their final views.  


  The guidelines area unit being framed as direct marketing business is facing issues within the absence of clear legislation that defines the regulative framework.
Industry players had prompt to convey legal holiness by notifying the rules on direct


marketing as a part of rules underneath the new shopper Protection Bill.
The bill has provisions to safeguard the interest of shoppers shopping for on e-commerce and direct marketing platforms. Sorce : www.mlmnewspaper.com  indiatoday.in  www.timesofhindi.com  

Govt finalize guidelines for mlm direct selling companies in India

  29/Aug/2016 New Delhi :  To protect public from fallacious ponzi mlm schemes being peddled as direct marketing, a replacement set of tips is probably going to be place in situ before long to manage this sector.



The Department of consumer Affairs Ministry has finalised the rules for the Rs 72000 crores large integer direct selling industry (also known as mlm Network marketing business or multi level marketing) and also the same is predicted to be notified.

The guidelines can outline direct marketing and the way it's totally different from the opposite cash current theme. The direct marketing must always be joined with merchandise and there ought to be a buyer-seller agreement, sources aforementioned.
as mlmnewspaper.com 
In a meeting with business stakeholders control last month, shopper Affairs Minister Ram Vilas Paswan had mentioned the draft tips ready by the inter-ministerial panel and took their final views.  


  The guidelines area unit being framed as direct marketing business is facing issues within the absence of clear legislation that defines the regulative framework.
Industry players had prompt to convey legal holiness by notifying the rules on direct


marketing as a part of rules underneath the new shopper Protection Bill.
The bill has provisions to safeguard the interest of shoppers shopping for on e-commerce and direct marketing platforms. Sorce : www.mlmnewspaper.com  indiatoday.in  www.timesofhindi.com  

Posted at 1:34 AM |  by Mayank Pratap Singh Rajawat

04 May 2016

The Koramangala police in conjunction with officers of the Central Crime Branch busted the international multi-level selling (MLM) company QNet and inactive 5 persons UN agency were assembling lakhs of rupees from the gullible folks promising foreign journeys and better returns.

Based on a grievance filed by a victim, Nitin Vaidya, police officers from Koramangala searched a eating house and inactive Sanjay Suri (32) and U. Nikil Santosh Kumar (29) from Telangana, Naren Sharma (28) from Himachal Pradesh, Susheel Shanghvi (34) from Mumbai and Prashath Kumar (34) from Kerala and recovered six mobile phones, a car, a motorcycle and Rs. 11,510 from them.

According to the police the suspect — engineering, master's degree and MCA graduates, UN agency were a part of the QNet chain-link company primarily based in port — had lured mister. Vaidya to take a position Rs. 7.8 hundred thousand promising a visit to London and conjointly assured high rate of commission for obtaining additional members into the corporate. However, Mr. Vaidya claimed that he was neither sent to the trip nor they came his cash following that he approached the police on Gregorian calendar month ten. On questioning, the suspect confessed that they need conjointly been cheated however they set to induce additional members to the company’s fold to recover their quantity. The police square measure investigation to trace the prime suspect, primarily based outside the country.


The suspect

were a part of

the QNet chain-link company primarily based

in port

MLM News : Fraud Firm Busted, five arrested.

The Koramangala police in conjunction with officers of the Central Crime Branch busted the international multi-level selling (MLM) company QNet and inactive 5 persons UN agency were assembling lakhs of rupees from the gullible folks promising foreign journeys and better returns.

Based on a grievance filed by a victim, Nitin Vaidya, police officers from Koramangala searched a eating house and inactive Sanjay Suri (32) and U. Nikil Santosh Kumar (29) from Telangana, Naren Sharma (28) from Himachal Pradesh, Susheel Shanghvi (34) from Mumbai and Prashath Kumar (34) from Kerala and recovered six mobile phones, a car, a motorcycle and Rs. 11,510 from them.

According to the police the suspect — engineering, master's degree and MCA graduates, UN agency were a part of the QNet chain-link company primarily based in port — had lured mister. Vaidya to take a position Rs. 7.8 hundred thousand promising a visit to London and conjointly assured high rate of commission for obtaining additional members into the corporate. However, Mr. Vaidya claimed that he was neither sent to the trip nor they came his cash following that he approached the police on Gregorian calendar month ten. On questioning, the suspect confessed that they need conjointly been cheated however they set to induce additional members to the company’s fold to recover their quantity. The police square measure investigation to trace the prime suspect, primarily based outside the country.


The suspect

were a part of

the QNet chain-link company primarily based

in port

Posted at 11:15 AM |  by Unknown

02 May 2016

       BJP state unit chief exponent Madhav Bhandari enlightened mediapersons that he has already met chief minister Devendra Fadnavis during this regard and Fadnavis has assured a radical inquiry into the operations of those companies in Maharashtra.

Alleging that former union home minister P Chidambaram and his adult female Nalini were within the understand of the activities of the Hong Kong-based multi-level promoting (MLM) cluster – that operates underneath multiple names like Qnet, GoldQuest, QuestNet, chi Ltd etc – the state unit of the BJP, on Sat, demanded associate degree inquiry into the duping of twelve large integer individuals everywhere the country by the disputed cluster.

BJP state unit chief exponent Madhav Bhandari enlightened mediapersons that he has already met chief minister Devendra Fadnavis during this regard and Fadnavis has assured a radical inquiry into the operations of those companies in Maharashtra. Bhandari was in the course of Gurupreet Singh Anand, World Health Organization has filed a grievance with the economic offences wing of urban center Police, relating to duping of his adult female by Qnet.

Bhandari aforesaid that these firms are functioning everywhere the country and have modified names when FIRs, arrests and proceedings, thereby duping additional and additional voters. He aforesaid the businesses have duped one.2 million Indian voters to the tune of thousands of crores. every of the capitalist has lost Rs one to three large integer within the scam. He aforesaid that Chidambaram and his adult female were operating as legal advisors of those companies for years and then cognizant of the operations of those firms.

Pointing out that associate degree advocate, Mahesh Khanna from metropolis, had approached the chief vigilance commissioner (CVC) on the difficulty, Bhandari enlightened that the CVC had handed  over the touch CBI in Gregorian calendar month 2010 for necessary action however since Chidambaram was the union home minister then, the matter was pushed underneath the carpet. Bhandari alleged that names of Chidambarams, in conjunction with former union minister Shashi Tharoor, additionally figure within the case since advocate Khanna has listed Tharoor's name also and also the matter is cited the CBI.

Bhandari aforesaid that Gurupreet Singh Anand had approached the urban center Police, however there too the investigation came harassed and even Anand was coerced to withdraw his grievance. Bhandari aforesaid that the chief minister has assured that the police can get into the roots of this case which he would additionally take up the matter with the union government.

Pawar, Deshmukh named in plaint
Stating that names of former CM, late Vilasrao Deshmukh, and former agriculture minister Sharad Pawar, even have been mentioned by advocate Khanna in his grievance to the CVC, Bhandari aforesaid that the BJP, however, is desisting from levelling charges against them for wish of documentary proof. 

BJP Says - P Chidambaram, partner Nalini party to MLM fraud that duped 1200000 folks.

       BJP state unit chief exponent Madhav Bhandari enlightened mediapersons that he has already met chief minister Devendra Fadnavis during this regard and Fadnavis has assured a radical inquiry into the operations of those companies in Maharashtra.

Alleging that former union home minister P Chidambaram and his adult female Nalini were within the understand of the activities of the Hong Kong-based multi-level promoting (MLM) cluster – that operates underneath multiple names like Qnet, GoldQuest, QuestNet, chi Ltd etc – the state unit of the BJP, on Sat, demanded associate degree inquiry into the duping of twelve large integer individuals everywhere the country by the disputed cluster.

BJP state unit chief exponent Madhav Bhandari enlightened mediapersons that he has already met chief minister Devendra Fadnavis during this regard and Fadnavis has assured a radical inquiry into the operations of those companies in Maharashtra. Bhandari was in the course of Gurupreet Singh Anand, World Health Organization has filed a grievance with the economic offences wing of urban center Police, relating to duping of his adult female by Qnet.

Bhandari aforesaid that these firms are functioning everywhere the country and have modified names when FIRs, arrests and proceedings, thereby duping additional and additional voters. He aforesaid the businesses have duped one.2 million Indian voters to the tune of thousands of crores. every of the capitalist has lost Rs one to three large integer within the scam. He aforesaid that Chidambaram and his adult female were operating as legal advisors of those companies for years and then cognizant of the operations of those firms.

Pointing out that associate degree advocate, Mahesh Khanna from metropolis, had approached the chief vigilance commissioner (CVC) on the difficulty, Bhandari enlightened that the CVC had handed  over the touch CBI in Gregorian calendar month 2010 for necessary action however since Chidambaram was the union home minister then, the matter was pushed underneath the carpet. Bhandari alleged that names of Chidambarams, in conjunction with former union minister Shashi Tharoor, additionally figure within the case since advocate Khanna has listed Tharoor's name also and also the matter is cited the CBI.

Bhandari aforesaid that Gurupreet Singh Anand had approached the urban center Police, however there too the investigation came harassed and even Anand was coerced to withdraw his grievance. Bhandari aforesaid that the chief minister has assured that the police can get into the roots of this case which he would additionally take up the matter with the union government.

Pawar, Deshmukh named in plaint
Stating that names of former CM, late Vilasrao Deshmukh, and former agriculture minister Sharad Pawar, even have been mentioned by advocate Khanna in his grievance to the CVC, Bhandari aforesaid that the BJP, however, is desisting from levelling charges against them for wish of documentary proof. 

Posted at 9:52 PM |  by Unknown

02 July 2015

The Vijayawada police on Sabbatum took into custody fifteen individuals, World Health Organization allegedly ran a multi-level promoting (MLM) network. They were defendant of duping students within the pretense of giving on-line master's degree courses and taking them for world visits at discounted costs.

Their intention was to finally lure the scholars into the MLM business. The Krishnalanka police area unit work the case.

MLM News - Police Bust MLM Network in Vijaywada

The Vijayawada police on Sabbatum took into custody fifteen individuals, World Health Organization allegedly ran a multi-level promoting (MLM) network. They were defendant of duping students within the pretense of giving on-line master's degree courses and taking them for world visits at discounted costs.

Their intention was to finally lure the scholars into the MLM business. The Krishnalanka police area unit work the case.

Posted at 7:50 AM |  by Unknown

14 June 2015

HC asks TN Govt to contemplate preventive steps against MLM.

Madras court has delineate multi-level selling schemes as Pyramid schemes expressed to be non-sustainable business model and asked the govt. to contemplate preventive measures in order that individuals aren't lured by such schemes.

"The regime could look at the difficulty from the attitude of not solely prosecuting the violative parties, however taking preventive measures, together with acceptable message, in order that individuals aren't lured by such schemes," it said.
ADVERTISING


"The greed for extracting cash while not realising the pitfalls has resulted publically being misled into investment in these MLM's," a bench comprising magistrate Sanjay Kishan Kaul and Justice TS Sivagnanam same eliminating a PIL.

Petitioner V R Othisamy had wanted a direction to the govt. and also the Police authorities to require necessary action by framing acceptable pointers to stop and stop running of any business within the name of MLMs.

The court same MLM was a theme involving exchange of cash primarily for enrolling others to earn a lot of by straightforward technique of introducing new members to grow within the pyramid.

The PIL was filed within the background of AN MLM in Erode grouping Rs 800 large integer investments from public and defaulting on interest and principal reimbursement.

HC asks TN Govt to contemplate preventive steps against MLM (Multi Level Marketing)

HC asks TN Govt to contemplate preventive steps against MLM.

Madras court has delineate multi-level selling schemes as Pyramid schemes expressed to be non-sustainable business model and asked the govt. to contemplate preventive measures in order that individuals aren't lured by such schemes.

"The regime could look at the difficulty from the attitude of not solely prosecuting the violative parties, however taking preventive measures, together with acceptable message, in order that individuals aren't lured by such schemes," it said.
ADVERTISING


"The greed for extracting cash while not realising the pitfalls has resulted publically being misled into investment in these MLM's," a bench comprising magistrate Sanjay Kishan Kaul and Justice TS Sivagnanam same eliminating a PIL.

Petitioner V R Othisamy had wanted a direction to the govt. and also the Police authorities to require necessary action by framing acceptable pointers to stop and stop running of any business within the name of MLMs.

The court same MLM was a theme involving exchange of cash primarily for enrolling others to earn a lot of by straightforward technique of introducing new members to grow within the pyramid.

The PIL was filed within the background of AN MLM in Erode grouping Rs 800 large integer investments from public and defaulting on interest and principal reimbursement.

Posted at 10:40 AM |  by Unknown

02 May 2015

About four million Filipinos square measure in direct mercantilism. they need dreamt of being entrepreneurs however don't have the capital. Some have found monetary and private freedom, whereas others became victims of rig scams.

The Direct mercantilism Association of the Philippines (DSAP) shares answers to commonly asked questions on rig corporations and people that square measure legitimate and with property compensation plans.


Question: mistreatment layman’s terms, what's rig and what’s the most distinction between legitimate construction selling (MLM) and pyramiding?

Max VP for Asia Joey Sarmiento: Network selling, or MLM, could be a legitimate mode of business whereby merchandise square measure oversubscribed via person-to-person mercantilism rather than the standard means of mercantilism from a hard and fast retail location. the target is to sell merchandise to the end-consumers.

The distinction between MLM and direct mercantilism is within the commission system, whereby participants in MLM typically like the sales created by individuals below their line of support notwithstanding they're many levels deep (e.g., associate freelance distributor in associate MLM earns commissions not solely on his/her personal product sales, and not solely on the sales of someone in person recruited by him/her, however conjointly on the sales of persons recruited by his/her personal recruits).

Pyramiding on the opposite hand is mostly characterised by individuals earning primarily from the act of recruiting others United Nations agency pay important registration fees to affix the strategy.

The those who sign on and create the investment within the sort of registration fees then attempt to recoup their investment by recruiting others into the theme by attractive them to create similar investments.

Even if the registration fees embody merchandise, the overall quantity of payment is deemed a registration fee or investment as individuals pay the total to affix the set up instead of to sell the merchandise to final shoppers.

Pyramiding is unlawful as a result of it's a cash game. Profits square measure derived primarily from participants’ entry fees, and therefore the financial gain relies on the participants slot or position among the organization instead of the power to sell the merchandise or services.

DSAP, through its membership and compliance committees, makes positive that every one its members fits the rules of the Philippine government as embodied within the client Act of the Philippines, the DTI Implementing tips against rig (DTI body order no. eight Series 2002), and therefore the SEC tips against unregistered investments.

For the official list of DSAP member corporations, please visit the DSAP web site at computer network.dsap.ph.

Q: Why is rig such a hot topic?

Avon decision maker Emie Nierves: rig could be a hot topic as a result of it affects, and has affected, many folks notwithstanding social or monetary stature with its promise of straightforward and immediate gain.

In the past, rig has attracted plenty of stories once the strategy fails and folks lose their cash that, in several instances, square measure life savings. nevertheless pyramids still happen. It brings plenty of pain and sorrow to the victims.

In addition, the ineligible pyramid schemes impact legitimate direct mercantilism and multi-level selling businesses, which provide earning opportunities to uplift the lives of people. Propagators of pyramid schemes tend to equate themselves to legitimate businesses, after they square measure extremely terribly totally different and may be distinguished through the 8-Point take a look at of DSAP.

Q: Before Amway won a landmark case against the us Federal Trade Commission in 1979 that legitimized MLM, Amway was “accused” of rig within the us in 1975. What was the highlight of the triumph that set new standards that outlined legitimate MLM companies?

Amway country manager Leni Olmedo: once four years of legal proceedings, the United States Federal Trade Commission dominated in 1979 that Amway wasn't associate ineligible strategy on account of the actual fact that the Amway sales and selling set up relies on retail sales to shoppers, which the subsequent salient options of the Amway set up and rules of conduct provided adequate protection to consumers:

There is no “headhunting” fee. Bonuses square measure supported product sales, and distributors should satisfy customers to create the Amway set up work.

The “70-percent rule” needs distributors to sell a minimum of seventy % of the overall quantity of merchandise bought at any given month as a precondition to receiving performance bonus, so preventing inventory loading.
The “10-customer rule” needs distributors create a minimum of one sale to every of ten totally different customers that month to create him eligible to receive bonuses and commissions on sales created by alternative distributors in their personal sales organization, so encouraging retail sales to shoppers.

A “buy-back policy” is obtainable for unsold inventory.

Jeffrey A. Babener, in his article on “The Landmark Amway Case” in 1999, wrote that “the call has become referred to as the “Amway Safeguards Rule” that is presently one in all the foremost important sets of legal standards by that courts associated restrictive agencies verify the legitimacy of an MLM/network marketing/direct sales company.”

The Federal Trade Commission investigations gave Amway and therefore the business revived quality within the long-standing time. Decades once the landmark call, the higher than criteria, referred to as the Amway safeguards take a look at, continues to be used as a model or “gold standard” in differentiating legitimate MLM corporations versus ineligible pyramids.

Q: What reasonably reward schemes square measure thought of “red flags” for potential rig companies?

Symmetry chief alphabetic character Anana: change of integrity a corporation and inspiring new members to possess multiple heads or multiple distributorships; the monetary rewards being offered supported recruiting others United Nations agency square measure equally offered rewards to recruit others; basing the rewards on recruiting scales and having the ability to earn on infinite levels while not even considering market demands square measure thought of “red flags” for potential rig corporations.

Q: Why ought to one avoid change of integrity a rig company?

Tupperware president Jun Pangilinan: rig is unlawful. it's a scam and a observe of tricking individuals to register, pay and invest cash with a promise of high commissions and earnings, typically with none product being oversubscribed.

There is no business basis for earnings and commissions to be paid. Direct mercantilism is all regarding providing opportunities to earn by mercantilism quality, honest market price merchandise to shoppers on a property basis. mercantilism a product is that the business basis of providing people commissions, whereby the corporate shares the take advantage of the merchandise oversubscribed to the individual United Nations agency worked and oversubscribed it to the patron.
Fair market price and quality of the merchandise oversubscribed guarantee property earnings and financial gain that is that the intent of direct mercantilism.

Q: What advantages can one get by change of integrity a DSAP licenced company?

Gano I-Touch senior manager Maricar Sandalo: One will produce a corporation image of getting a business that's legitimate, honest and property by being a member of DSAP with strict business standards, and a partner of DTI within the campaign against rig.

One can even get pleasure from the advantage of having a concrete means that of correcting negative practices within the field by distributors of alternative DSAP corporations, working on their own, tired the spirit of dialogue and reconciliation and guided  by a strict code of ethics.

Another is to be told from the simplest practices and made comes of alternative DSAP corporations willing to share within the regular forums of the association. DSAP provides an honest counterpoint against the illegitimate rig corporations that square measure making a nasty image to the business.

Finally, it helps boost the government’s campaign for comprehensive growth, lifting a lot of individuals from poorness by making a military of entrepreneurs to assist themselves and therefore the financial set-up.


Q: however will one take care they're not change of integrity a rig company?

Sundance operations manager Kevin Yu: rig corporations survive by disguising themselves as legitimate direct mercantilism or MLM corporations with hopes of taking advantage of unsuspecting shoppers.

People ought to be aware of the businesses they be part of in order that they won’t be simply used. so as to assist, DSAP came up with the 8-point Test—a series of queries that may differentiate a legitimate direct mercantilism company from a rig one:

Is there a product?

Are commissions paid on sale of merchandise and not on registration/entry fees?

Is the intent to sell a product not a position?

Is there no positive correlation between the amount of recruits and compensation?

If accomplishment were to be stopped nowadays, would the participants still create money?

Is there an affordable product come policy?

Do merchandise have honest market value?

Is there a compelling reason to buy?

If the solution to any or all the queries is affirmative, then the corporate being evaluated could be a legitimate company. however if the solution to even only one question is not any, then there's a high likelihood that it's a pyramid scam.

Q: If a corporation has legitimate merchandise and encourages selling, square measure they mechanically legitimate MLM? Why or why not?

Nu Skin’s sales and operations director Arlene Asidao: selling to shoppers of legitimate and safe merchandise, whose claims are supported which square measure registered with and approved by the authorities for mercantilism within the Philippines, is an important characteristic of a legitimate MLM company.

A legitimate MLM company has merchandise priced at honest market price, whereby customers habitually purchase the merchandise while not change of integrity the corporate as a distributor; ordinarily has cheap refund policy for retail customers; and any unsold merchandise may be bought back by the MLM/direct mercantilism corporations whether or not or not a distributor decides to quit the business; and compensation is tied to the sales of merchandise and not supported the amount of recruits language up.

Q: What square measure remedies if one discovers that the corporate he or she joined is really a rig company?

Direct searching president Raymon Gabriel: For any help, you'll contact DSAP through 6383089 or e-mail dsap.ph@gmail.com.

DSAP is that the 1st line of defense to assist verify rig. Complaints may be submitted to DTI.


Q: however will government agencies just like the DTI and/or SEC clip the wings of rig firms?

DSAP attorney Errol Palaci: as a result of rig schemes feed on the ignorant, endless and aggressive data and education campaign by the govt. against these kinds of schemes should be priority.

Moreover, the govt. will take a faster and a lot of decisive action on reports of rig schemes. we tend to don't got to wait till individuals have lost their cash. As shortly as queries and reports square measure received, then the govt. ought to investigate promptly and place a stop to the schemes.

Disclaimer : The comments uploaded on this web site don't essentially represent or mirror the views of management and owner of enquirer.net. we tend to reserve the proper to exclude comments that we tend to view as to be inconsistent with our editorial standards. The author is chair of promoting coaching company Mansmith and Fielders INC.. For the whole interview, further as interview with alternative thought leaders, please visit computer network.josiahgo.com  http://Business.Inquirer.net

Source : www.mlmnewspaper.com   Http://Business.Inquirer.net 


Direct Selling vs Pyramid Scheme Q&A in Philippines

About four million Filipinos square measure in direct mercantilism. they need dreamt of being entrepreneurs however don't have the capital. Some have found monetary and private freedom, whereas others became victims of rig scams.

The Direct mercantilism Association of the Philippines (DSAP) shares answers to commonly asked questions on rig corporations and people that square measure legitimate and with property compensation plans.


Question: mistreatment layman’s terms, what's rig and what’s the most distinction between legitimate construction selling (MLM) and pyramiding?

Max VP for Asia Joey Sarmiento: Network selling, or MLM, could be a legitimate mode of business whereby merchandise square measure oversubscribed via person-to-person mercantilism rather than the standard means of mercantilism from a hard and fast retail location. the target is to sell merchandise to the end-consumers.

The distinction between MLM and direct mercantilism is within the commission system, whereby participants in MLM typically like the sales created by individuals below their line of support notwithstanding they're many levels deep (e.g., associate freelance distributor in associate MLM earns commissions not solely on his/her personal product sales, and not solely on the sales of someone in person recruited by him/her, however conjointly on the sales of persons recruited by his/her personal recruits).

Pyramiding on the opposite hand is mostly characterised by individuals earning primarily from the act of recruiting others United Nations agency pay important registration fees to affix the strategy.

The those who sign on and create the investment within the sort of registration fees then attempt to recoup their investment by recruiting others into the theme by attractive them to create similar investments.

Even if the registration fees embody merchandise, the overall quantity of payment is deemed a registration fee or investment as individuals pay the total to affix the set up instead of to sell the merchandise to final shoppers.

Pyramiding is unlawful as a result of it's a cash game. Profits square measure derived primarily from participants’ entry fees, and therefore the financial gain relies on the participants slot or position among the organization instead of the power to sell the merchandise or services.

DSAP, through its membership and compliance committees, makes positive that every one its members fits the rules of the Philippine government as embodied within the client Act of the Philippines, the DTI Implementing tips against rig (DTI body order no. eight Series 2002), and therefore the SEC tips against unregistered investments.

For the official list of DSAP member corporations, please visit the DSAP web site at computer network.dsap.ph.

Q: Why is rig such a hot topic?

Avon decision maker Emie Nierves: rig could be a hot topic as a result of it affects, and has affected, many folks notwithstanding social or monetary stature with its promise of straightforward and immediate gain.

In the past, rig has attracted plenty of stories once the strategy fails and folks lose their cash that, in several instances, square measure life savings. nevertheless pyramids still happen. It brings plenty of pain and sorrow to the victims.

In addition, the ineligible pyramid schemes impact legitimate direct mercantilism and multi-level selling businesses, which provide earning opportunities to uplift the lives of people. Propagators of pyramid schemes tend to equate themselves to legitimate businesses, after they square measure extremely terribly totally different and may be distinguished through the 8-Point take a look at of DSAP.

Q: Before Amway won a landmark case against the us Federal Trade Commission in 1979 that legitimized MLM, Amway was “accused” of rig within the us in 1975. What was the highlight of the triumph that set new standards that outlined legitimate MLM companies?

Amway country manager Leni Olmedo: once four years of legal proceedings, the United States Federal Trade Commission dominated in 1979 that Amway wasn't associate ineligible strategy on account of the actual fact that the Amway sales and selling set up relies on retail sales to shoppers, which the subsequent salient options of the Amway set up and rules of conduct provided adequate protection to consumers:

There is no “headhunting” fee. Bonuses square measure supported product sales, and distributors should satisfy customers to create the Amway set up work.

The “70-percent rule” needs distributors to sell a minimum of seventy % of the overall quantity of merchandise bought at any given month as a precondition to receiving performance bonus, so preventing inventory loading.
The “10-customer rule” needs distributors create a minimum of one sale to every of ten totally different customers that month to create him eligible to receive bonuses and commissions on sales created by alternative distributors in their personal sales organization, so encouraging retail sales to shoppers.

A “buy-back policy” is obtainable for unsold inventory.

Jeffrey A. Babener, in his article on “The Landmark Amway Case” in 1999, wrote that “the call has become referred to as the “Amway Safeguards Rule” that is presently one in all the foremost important sets of legal standards by that courts associated restrictive agencies verify the legitimacy of an MLM/network marketing/direct sales company.”

The Federal Trade Commission investigations gave Amway and therefore the business revived quality within the long-standing time. Decades once the landmark call, the higher than criteria, referred to as the Amway safeguards take a look at, continues to be used as a model or “gold standard” in differentiating legitimate MLM corporations versus ineligible pyramids.

Q: What reasonably reward schemes square measure thought of “red flags” for potential rig companies?

Symmetry chief alphabetic character Anana: change of integrity a corporation and inspiring new members to possess multiple heads or multiple distributorships; the monetary rewards being offered supported recruiting others United Nations agency square measure equally offered rewards to recruit others; basing the rewards on recruiting scales and having the ability to earn on infinite levels while not even considering market demands square measure thought of “red flags” for potential rig corporations.

Q: Why ought to one avoid change of integrity a rig company?

Tupperware president Jun Pangilinan: rig is unlawful. it's a scam and a observe of tricking individuals to register, pay and invest cash with a promise of high commissions and earnings, typically with none product being oversubscribed.

There is no business basis for earnings and commissions to be paid. Direct mercantilism is all regarding providing opportunities to earn by mercantilism quality, honest market price merchandise to shoppers on a property basis. mercantilism a product is that the business basis of providing people commissions, whereby the corporate shares the take advantage of the merchandise oversubscribed to the individual United Nations agency worked and oversubscribed it to the patron.
Fair market price and quality of the merchandise oversubscribed guarantee property earnings and financial gain that is that the intent of direct mercantilism.

Q: What advantages can one get by change of integrity a DSAP licenced company?

Gano I-Touch senior manager Maricar Sandalo: One will produce a corporation image of getting a business that's legitimate, honest and property by being a member of DSAP with strict business standards, and a partner of DTI within the campaign against rig.

One can even get pleasure from the advantage of having a concrete means that of correcting negative practices within the field by distributors of alternative DSAP corporations, working on their own, tired the spirit of dialogue and reconciliation and guided  by a strict code of ethics.

Another is to be told from the simplest practices and made comes of alternative DSAP corporations willing to share within the regular forums of the association. DSAP provides an honest counterpoint against the illegitimate rig corporations that square measure making a nasty image to the business.

Finally, it helps boost the government’s campaign for comprehensive growth, lifting a lot of individuals from poorness by making a military of entrepreneurs to assist themselves and therefore the financial set-up.


Q: however will one take care they're not change of integrity a rig company?

Sundance operations manager Kevin Yu: rig corporations survive by disguising themselves as legitimate direct mercantilism or MLM corporations with hopes of taking advantage of unsuspecting shoppers.

People ought to be aware of the businesses they be part of in order that they won’t be simply used. so as to assist, DSAP came up with the 8-point Test—a series of queries that may differentiate a legitimate direct mercantilism company from a rig one:

Is there a product?

Are commissions paid on sale of merchandise and not on registration/entry fees?

Is the intent to sell a product not a position?

Is there no positive correlation between the amount of recruits and compensation?

If accomplishment were to be stopped nowadays, would the participants still create money?

Is there an affordable product come policy?

Do merchandise have honest market value?

Is there a compelling reason to buy?

If the solution to any or all the queries is affirmative, then the corporate being evaluated could be a legitimate company. however if the solution to even only one question is not any, then there's a high likelihood that it's a pyramid scam.

Q: If a corporation has legitimate merchandise and encourages selling, square measure they mechanically legitimate MLM? Why or why not?

Nu Skin’s sales and operations director Arlene Asidao: selling to shoppers of legitimate and safe merchandise, whose claims are supported which square measure registered with and approved by the authorities for mercantilism within the Philippines, is an important characteristic of a legitimate MLM company.

A legitimate MLM company has merchandise priced at honest market price, whereby customers habitually purchase the merchandise while not change of integrity the corporate as a distributor; ordinarily has cheap refund policy for retail customers; and any unsold merchandise may be bought back by the MLM/direct mercantilism corporations whether or not or not a distributor decides to quit the business; and compensation is tied to the sales of merchandise and not supported the amount of recruits language up.

Q: What square measure remedies if one discovers that the corporate he or she joined is really a rig company?

Direct searching president Raymon Gabriel: For any help, you'll contact DSAP through 6383089 or e-mail dsap.ph@gmail.com.

DSAP is that the 1st line of defense to assist verify rig. Complaints may be submitted to DTI.


Q: however will government agencies just like the DTI and/or SEC clip the wings of rig firms?

DSAP attorney Errol Palaci: as a result of rig schemes feed on the ignorant, endless and aggressive data and education campaign by the govt. against these kinds of schemes should be priority.

Moreover, the govt. will take a faster and a lot of decisive action on reports of rig schemes. we tend to don't got to wait till individuals have lost their cash. As shortly as queries and reports square measure received, then the govt. ought to investigate promptly and place a stop to the schemes.

Disclaimer : The comments uploaded on this web site don't essentially represent or mirror the views of management and owner of enquirer.net. we tend to reserve the proper to exclude comments that we tend to view as to be inconsistent with our editorial standards. The author is chair of promoting coaching company Mansmith and Fielders INC.. For the whole interview, further as interview with alternative thought leaders, please visit computer network.josiahgo.com  http://Business.Inquirer.net

Source : www.mlmnewspaper.com   Http://Business.Inquirer.net 


Posted at 11:43 AM |  by Unknown

18 April 2015

Vestige Marketing Pvt. Ltd  Delhi Based Indian Direct Selling Company Now Become (IDSA) Indian Direct Selling Association member.
Vestige Company started in 2005 by CMD Mr.Gautam Bali Mr.Deepak Sood & Mr.Kanwar Bir Singh.

Vestige Growing constantly with 100% Yearly  with its World Class Products, Vestige is India's 1st Company who provides  its Products in Indian Affordable pries and  Sold Very Fast.
If  you want to Join Vestige Business you can contact to


View Vestige Company Profile Please Visit Company WEBSITE





Vestige News - Vestige Marketing Pvt Ltd Company now IDSA Member

Vestige Marketing Pvt. Ltd  Delhi Based Indian Direct Selling Company Now Become (IDSA) Indian Direct Selling Association member.
Vestige Company started in 2005 by CMD Mr.Gautam Bali Mr.Deepak Sood & Mr.Kanwar Bir Singh.

Vestige Growing constantly with 100% Yearly  with its World Class Products, Vestige is India's 1st Company who provides  its Products in Indian Affordable pries and  Sold Very Fast.
If  you want to Join Vestige Business you can contact to


View Vestige Company Profile Please Visit Company WEBSITE





Posted at 9:30 AM |  by Unknown

08 February 2015

The Crime branch of Mumbai police 


today arrested six persons, including 

the country head of Speak Asia, in

connection with the over Rs 2,276-crore 

online marketing firm scam in which lakhs 

of investors were duped. 



"The country head of Speak Asia Sanjeev Mehta  was arrested from

 Mumbai and five others were held from elsewhere," 


Mumbai police 

spokesperson DCP Dhananjay Kulkarni said. All the accused have been remanded in 

police custody till February 7, he said.




Speak Asia, which was registered in Singapore, was introduced in India in early 2010.

 The company had promised lucrative returns through a multi marketing pyramid model.

 The online survey marketing company sold web subscription for Rs 11,000 each and in

 return the investor had to fill survey forms, which were later found to be fake, for certain

 MNCs for promised annual payment of Rs 52,000.






After paying few initial investors, Speak Asia wrapped up its operation in India around 

mid-2011. The company duped over 24 lakh investors. The amount of scam went up to

 Rs 2,276 crore. A number of cases had been registered in different states. According to 

police, Speak Asia had remitted over Rs 900 crore to Singapore. The money was sent 

from India to the banks in Singapore and from there to Dubai, Italy and UK. However

, the money came back from UK again to UAE (Dubai) and to India.

After paying few initial investors, Speak Asia wrapped up its operation in India

 around mid-2011. The company duped over 24 lakh investors. The amount of

 scam went up to Rs 2,276 crore.  




Source : : http://www.moneycontrol.com      www.MLMNewspaper.com 


news/business/speak-asia-country-head-5-others-heldmulti-crore-scam_1289335.html?utm_source=ref_article

Speak Asia country head, 5 others held in 2276 crore scam.

The Crime branch of Mumbai police 


today arrested six persons, including 

the country head of Speak Asia, in

connection with the over Rs 2,276-crore 

online marketing firm scam in which lakhs 

of investors were duped. 



"The country head of Speak Asia Sanjeev Mehta  was arrested from

 Mumbai and five others were held from elsewhere," 


Mumbai police 

spokesperson DCP Dhananjay Kulkarni said. All the accused have been remanded in 

police custody till February 7, he said.




Speak Asia, which was registered in Singapore, was introduced in India in early 2010.

 The company had promised lucrative returns through a multi marketing pyramid model.

 The online survey marketing company sold web subscription for Rs 11,000 each and in

 return the investor had to fill survey forms, which were later found to be fake, for certain

 MNCs for promised annual payment of Rs 52,000.






After paying few initial investors, Speak Asia wrapped up its operation in India around 

mid-2011. The company duped over 24 lakh investors. The amount of scam went up to

 Rs 2,276 crore. A number of cases had been registered in different states. According to 

police, Speak Asia had remitted over Rs 900 crore to Singapore. The money was sent 

from India to the banks in Singapore and from there to Dubai, Italy and UK. However

, the money came back from UK again to UAE (Dubai) and to India.

After paying few initial investors, Speak Asia wrapped up its operation in India

 around mid-2011. The company duped over 24 lakh investors. The amount of

 scam went up to Rs 2,276 crore.  




Source : : http://www.moneycontrol.com      www.MLMNewspaper.com 


news/business/speak-asia-country-head-5-others-heldmulti-crore-scam_1289335.html?utm_source=ref_article

Posted at 9:38 AM |  by Unknown

30 December 2014


In India, direct selling market is around 0.08% of the GDP at the moment, and hence has huge potential to grow.
Once clear regulatory guidelines are in place, the direct selling industry has the potential to touch Rs 64,500 crore in turnover by 2025, from a Rs 7,200 crore size now, felt industry experts here.

Talking at sidelines of the Federation of Indian Chambers of Commerce and Industry (FICCI), Rajandeep Singh, manager, strategy, strategy & operations, management consulting,KPMG India said that countries with a thriving direct selling market, have direct selling market to GDP ratio of 0.2 to 1.2 per cent. In India direct selling market is around 0.08 per cent of the GDP at the moment, and hence has huge potential to grow.

Singh added, "Segments like wellness, cosmetics and personal care now dominate the Indian direct selling market. By 2025, we estimate that as consumer markets would grow, the disposable income of the Indian middle class would also grow by at least 2.5 times. People in these households would spend more on personal care and wellness products."
The direct selling industry in the country now engages around 5.8 million people who are involved as distributors or direct sellers. According to KPMG, this number could grow to 18 million direct sellers by 2025. Women form a significant chunk of direct sellers, and from a current 3.4 million women, their numbers could touch 10.6 million by 2025.

Rajat Banerji, co-chair, FICCI-Direct Selling Commmittee, said that the industry is waiting for changes in the regulatory framework that now governs direct selling companies, and once that comes in, direct selling industry has huge potential in India. "In countries like Mexico, which have similar socio-economic structures, with one-tenth of India's population, the size of the direct selling industry is at least eight times bigger," he said.

The Indian Direct Selling Association (IDSA) has already sought changes to the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, and has urged the government to provide clarity in order to avoid misinterpretation.

The direct selling industry feels that the law in its current form is unable to distinguish between genuine direct selling companies from pyramid and ponzi schemes.
Source :- http://www.business-standard.com  www.mlmnewspaper.com


article/companies/direct-selling-industry-can-touch-rs-64-500-crore-by-2025-114111600818_1.html

Direct selling News : Industry can touch Rs 64,500 crore by 2025 .


In India, direct selling market is around 0.08% of the GDP at the moment, and hence has huge potential to grow.
Once clear regulatory guidelines are in place, the direct selling industry has the potential to touch Rs 64,500 crore in turnover by 2025, from a Rs 7,200 crore size now, felt industry experts here.

Talking at sidelines of the Federation of Indian Chambers of Commerce and Industry (FICCI), Rajandeep Singh, manager, strategy, strategy & operations, management consulting,KPMG India said that countries with a thriving direct selling market, have direct selling market to GDP ratio of 0.2 to 1.2 per cent. In India direct selling market is around 0.08 per cent of the GDP at the moment, and hence has huge potential to grow.

Singh added, "Segments like wellness, cosmetics and personal care now dominate the Indian direct selling market. By 2025, we estimate that as consumer markets would grow, the disposable income of the Indian middle class would also grow by at least 2.5 times. People in these households would spend more on personal care and wellness products."
The direct selling industry in the country now engages around 5.8 million people who are involved as distributors or direct sellers. According to KPMG, this number could grow to 18 million direct sellers by 2025. Women form a significant chunk of direct sellers, and from a current 3.4 million women, their numbers could touch 10.6 million by 2025.

Rajat Banerji, co-chair, FICCI-Direct Selling Commmittee, said that the industry is waiting for changes in the regulatory framework that now governs direct selling companies, and once that comes in, direct selling industry has huge potential in India. "In countries like Mexico, which have similar socio-economic structures, with one-tenth of India's population, the size of the direct selling industry is at least eight times bigger," he said.

The Indian Direct Selling Association (IDSA) has already sought changes to the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, and has urged the government to provide clarity in order to avoid misinterpretation.

The direct selling industry feels that the law in its current form is unable to distinguish between genuine direct selling companies from pyramid and ponzi schemes.
Source :- http://www.business-standard.com  www.mlmnewspaper.com


article/companies/direct-selling-industry-can-touch-rs-64-500-crore-by-2025-114111600818_1.html

Posted at 1:38 AM |  by Unknown

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