Friday, December 9

34 direct-selling companies have their licences cancelled

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KUALA LUMPUR: The licences of 34 direct-selling companies have been cancelled so far because they were operating pyramid schemes, said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainuddin.

“This is a very serious offence and we in the ministry pay particular attention to complaints related to breaches of the laws as enshrined in the Direct Sales and Anti-Pyramid Scheme Act 1993.

“We will not compromise with companies that fail to comply with the regulations and will not hesitate to revoke their licences,” he said after handing over direct selling licences to 27 companies at Menara Bank Rakyat here.

According to the Act, companies that are found guilty can be fined and those involved jailed depending on the offence, like not having a valid licence and  not notifying change of address of the business premises to the ministry.

The Direct Sales Act 1993 defines direct selling as selling from door to door or selling via orders while pyramid schemes or ‘ponzi’ schemes emphasise finding new members and not provision of products or services. — Bernama