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Two multi-level marketing companies cease operations

Released at: 16:23, 09/08/2017

Two multi-level marketing companies cease operations

Illustrative image (Source: quangbaweb.com)

Vietnam Competition Authority announces on August 8 that the two companies will cease operations.

by My Van

Two multi-level marketing (MLM) businesses - the Kangzen-Kenko Vietnam Co. and the Tupperware Vietnam Co. - ended their sales activities on August 8, according to an official announcement from the Vietnam Competition Authority (VCA) at the Ministry of Industry and Trade (MoIT).

Both were contacted by VET but no response has been forthcoming.

The VCA had previously announced the termination of the MLM sales activities conducted by Kangzen-Kenko and Tupperware Vietnam. It has not yet received any application from an MLM sales participant requesting that Kangzen-Kenko Vietnam and Tupperware Vietnam resolve any legal interests arising from MLM sales activities, as prescribed.

Within 30 days from August 8, VCA uploaded this information and participants in the MLM activities of both companies were able to inform VCA if either company had not fulfilled their management obligations in MLM sales activities.

If no notice was received from any MLM sales participant within this period, Kangzen-Kenko Vietnam and Tupperware Vietnam will be deemed to have been completed their obligations to participants.

The number of MLM enterprises in Vietnam had fallen sharply by the end of 2016 and early 2017, according to a VCA report. As at the end of March, numbers were down 45 per cent compared to 2015. In which, 15 enterprises had their certification withdrawn, 12 were proactively terminated, and three were suspended.

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