Govt intensifies actions against network marketing business operators

Published On: September 28, 2020 05:55 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 28: The Department of Commerce, Supplies and Consumer Protection has written to the Central Investigation Bureau (CIB) to carry out detailed investigations on the companies that are found involved in the member-based network businesses.

According to the officials of the department, the regulatory body requested the CIB to investigate 21 companies and 50 individuals on suspicion of their involvement in the network marketing businesses. The department has initiated the move after it received complaints against these companies and individuals.

Netra Prasad Subedi, Director General of the department, said most of the complaints that they received are against the firms operating in the Kathmandu Valley and few are from Tarai districts.   

Last week, the department, by issuing a public notice, warned of stern action against those found to be operating such businesses. The regulation of the Direct Sale of Goods (Management and Regulation) Act 2018 has barred everyone from conducting the pyramid based network marketing.

As per the department, it grilled two firms—Indus Bibha and Pashupati Bibha—last week under the same charge. Most of the network marketing businesses are reported to be conducted by foreign firms by hiring Nepali agents. These firms have been repatriating money by selling their products via networking businesses.  


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