Multi-level Greenlife, Oriflame, and Unicity fined for a billion dong

August 27, 2018 | 16:29
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Greenlife Corporation, Stella Ivy Cosmetic Co., Ltd. (Oriflame), and Unicity Marketing Vietnam Co., Ltd. will be penalised for a total of VND920 million ($40,700).
multi level greenlife oriflame and unicity fined for a billion dong
VCA has discovered great violations at the three multi-level companies

The Ministry of Industry and Trade’s Vietnam Competition Agency (VCA) has just announced the decision to fine three multi-level companies, including Greenlife Corporation, Stella Ivy Cosmetic Co., Ltd. (Oriflame), and Unicity Marketing Vietnam Co., Ltd.

Specifically, Greenlife Corporation (Pho Yen town, Thai Nguyen province) will be fined VND510 million ($22,600) for conducting multi-level sales activities without the approval of the Thai Nguyen Department of Industry and Trade. Additionally, the company’s amended business registration certificate did not include some of the company’s activities among the fields of operation.

VCA has decided to revoke the business registration certificate of Greenlife Corporation.

Greenlife also failed to properly and completely fulfil its training obligation for multi-level sales participants and did not grant multi-level sales network member cards to participants.

The company also failed to periodically report to competent state agencies and provided wrong or misleading information about the use of its goods to entice sales people to joint its multi-level sales network.

As a result, VCA has decided to revoke the business registration certificate of Greenlife Corporation. Previously, this company has been infamous because its members had led students to mortgage facilitates for usury loans, then poured the money into the multi-level company to become distributors.

VCA decided to issue a fine of VND170 million ($7,522) to Stella Ivy Cosmetic Co., Ltd. located at 100-102 Nguyen Van Troi Street, Phu Nhuan District, Ho Chi Minh City. This company did not follow or improperly implemented its obligations on revoking multi-level sale member card.

Stella Ivy Cosmetic conducted multi-level sales in centrally-run cities and provinces without approval from the provinces/cities' departments of Industry and Trade. The company, which distributes Oriflame cosmetic products, did not carry out or improperly implemented its obligation of training sales staff for its multi-level network, and there were no signed labour contracts between Stella and its sales staff.

Unicity Marketing Vietnam Co., Ltd. based at 141 Cong Hoa Street, Tan Binh District, Ho Chi Minh City, which is known as a multi-level company selling functional foods,will be penalised for VND240 million ($10,620) for violating regulations on the announcement of its headquarters and information on its multi-level sales network.

This company spent over 40 per cent of its total revenue for benefits and to pay bonuses to distributors.

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