[Vnbiz] What Is Multi-Level Marketing?

[Tran Dinh Hoanh]

Dear Romi & CACC,

Another regular MLM fraud which is perfectly legal is that a clever
guy will open a MLM company, having him and his family members as the
first group of people who start pyramids, knowing perfectly clear that
his company will die within a year (because his product is lousy and
has no merit).  But he doesn't care, because a year later when his
company is dead, he has already has a million dollars in his pocket
(and thousands of his independent sales agents will be left holding
the bag).

I really think that at this stage of Vietnam development with our weak
legal system, fraud and cheating already unmanageable in our economy,
and many uninformed folks who are desperately looking for ways to make
a living, allowing MLM adds nothing to the economy, helps a bunch of
crooks make money and hurts a lot of folks.

I would equate MLM with Karaoke Om.  Arguably, Karaoke Om may be
legal, but the possibility of it becomes prostitution is so large that
any little benefit it may give is really nothing.

Have a great day!

Hoanh
_______

On 11/6/06, Romi <romibleue at gmail.com> wrote:
>
> [Vietnam Business Forum]
>
>
>
>
>
> Dear a.Hoanh,
>
> Thanks a lot for your explanation! In fact, MLM in VN has been legally
> accepted, though still lacking in stricter regulations, since last July
> (Decision 110/2005 ND-CP, Competition Law. For more info:
> http://www.vneconomy.com.vn/vet/?param=info&name=Business%20report&id=10955).
>
> Since this business model was first introduced in VN (1998), some
> opportunists have earned a huge chunk of dollars, while a number of
> 'miserably less lucky' ones have lost their money, even worse, their kins
> and friends. Also, a bunch of MLM foreign companies have been operating...
>
> It's true that when a person chooses to do this 'enticing' business, it is
> his own 'business,' wisdom and conscience.
>
> Best regards,
>
> Romi
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-- 
Tran Dinh Hoanh, LLB, JD
Attorney of Law
Washington DC