Parliamentary panel directs govt to stop issuing new licenses to network marketing business

Published On: August 5, 2020 06:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Aug 5: The parliamentary Industry, Commerce, Labor and Consumer Welfare committee on Tuesday asked the Ministry of Industry, Commerce and Supplies to halt the process of issuing licenses to network marketing businesses that have been waiting for government approval to start their operation.

According to the Department of Commerce, Supply and Consumer Protection, currently six companies have applied to receive the operating license. Citing the provision in regulation of the Direct Sale of Goods (Management and Regulation) Act 2018, the parliamentary panel has imposed restrictions to allow businesses that work on pyramid-based marketing systems. 

This comes in the wake of the parliamentary panel receiving over two dozen complaints against network marketing businesses that are currently in operation, according to the panel Chairman Bimal Prasad Shrivastav. 

Nature Herbs International, Kumaripati; iboss Global International, Chabahil; New Bibek Enterprises, Ekantakuna; Healthy Living Nepal, Battisputali; Care Matters International, Chabahil; Uturn International, Tokha and Global Oriens Nepal, Balaju, have been permitted to do networking business by the market regulator in last one month. A number of these companies were also reported to have been involved in similar business in the past. 

The network marketing companies have courted controversies after many of them were found cheating their customers, swindling them billions of rupees. Unity Life International, Herbo International, Gold Quest International, Crystal Vision International, Best World Business Link and Robious International, among others, had caused people to suffer in the name of networking business a decade ago. Unity Life International alone duped around Rs 4 billion.

Amid increasing number of complaints, the parliamentary panel last week formed a taskforce to investigate the controversial network marketing businesses that were recently granted licenses. The sub-committee has  started an investigation on the modality of the business operation run by these seven companies.




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