A multi-level marketing company fined 450 million VND for a series of violations

Tuyết Lan |

The National Competition Commission has just sanctioned administrative violations against Nu Skin Enterprises Vietnam Co., Ltd. related to multi-level marketing activities.

According to information from the National Competition Committee (Ministry of Industry and Trade), through inspecting the compliance with the law on management of multi-level marketing business activities and protection of consumer rights, this unit issued a decision to sanction administrative violations against Nu Skin Enterprises Vietnam Co., Ltd. (Business code: 0311355044; Head office address: 2nd Floor, No. 280, Nam Ky Khoi Nghia Street, Xuan Hoa Ward, Ho Chi Minh City) with the amount of 450,000,000,000 VND (Four hundred and fifty million VND) for the following violations:

- Not assigning contracts to multi-level marketing participants in accordance with the law;

- Not allowing consumers to choose to allow or not allow the performance of one of the acts specified in points a, b, clause 4, Article 18 of the Law on Protection of Consumer Rights 2023;

- General transaction conditions do not specify the time of application;

- Failure to build and publicize procedures for receiving and resolving consumer feedback, requests, and complaints according to regulations;

- Failure to develop or promulgate procedures, methods or measures appropriate to each vulnerable consumer to ensure the right to complain, request dispute resolution and other rights of vulnerable consumers.

The National Competition Commission has requested the Company to stop violations, proactively review and ensure full and accurate compliance with the provisions of law on management of business activities according to the multi-level marketing method and the law on protection of consumer rights.

Tuyết Lan
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