According to the National Competition Committee (Ministry of Industry and Trade), through inspecting the compliance with legal regulations on management of multi-level marketing business activities and protection of consumer rights, this unit issued a decision to sanction administrative violations against Total Swiss Vietnam Co., Ltd. (Tax code: 0311580554; head office address: No. 89 Xuan Hong Street, Bay Hien Ward, Ho Chi Minh City) with a fine of 710 million VND for the following violations:
- Not assigning contracts to multi-level marketing participants according to the provisions of law.
- Appointing trainers who do not meet the conditions to conduct basic training for multi-level marketing participants.
- Pay multi-level marketing participants a total value of commissions, bonuses and other economic benefits, including benefits enjoyed under the promotion program, in one year exceeding 40% of the enterprise's multi-level marketing revenue in that year.
- Not implementing the registered prize payment plan correctly.
- Failure to perform or improperly perform responsibilities for delivery, receipt and sending of goods according to the provisions of law.
- Failure to properly implement regulations on ensuring a minimum multi-level marketing revenue in one fiscal year is revenue from customers who are not multi-level marketing participants of the enterprise.
- Notifying consumers about the scope of information use, the storage period of consumer information before collecting and using consumer information not in accordance with the provisions of Article 17 of the Law on Protection of Consumer Rights.
- Not providing information about the ability to supply replacement components and accessories of products and goods.
- Not providing instructions for use of products and goods.
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.
