Govt warns network marketing business operators

Published On: September 20, 2020 07:05 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 20: After being overwhelmed with complaints against the operation of network marketing businesses, the Department of Commerce, Supplies and Consumer Protection has warned of taking stern action against those found to be operating such businesses. 

Issuing a public notice recently, the department said complaints have been lodged at the department in “notable numbers” against many individuals, including Nepalis and foreign citizens, and local companies. Stating that the regulation of the Direct Sale of Goods (Management and Regulation) Act 2018 has barred everyone from conducting the pyramid based network marketing, the department has cautioned that anyone found involved in the business will be subjected to pay a cash penalty of up to Rs 1 million and a maximum of five years’ of jail term.  

In the past, the department itself used to grant licenses to many such companies to carry out the network business. The department fell into a difficult situation after the parliamentary Industry, Commerce, Labor and Consumer Welfare committee questioned the department’s role in the matter.


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