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subject: Recent introduction of direct selling law will be effective against pyramid schemes - beauty salons, policies and regulations, direct marketing - [print this page]


Recent introduction of direct selling law will be effective against pyramid schemes - beauty salons, policies and regulations, direct marketing -

Consumer: could easily identify illegal network

Recent " Direct Method "Has become a hot topic, the sources said, the legislation will be introduced recently. As the direct marketing and direct sales, are both very sensitive industry issues, various sectors have also expressed their views.

Business sectors: to effectively combat the illegal pyramid scheme

Provincial industry and commerce departments concerned that the "direct method" introduced will play an important role to combat the illegal pyramid schemes. The protection of legitimate businesses, organizations to combat illegal pyramid scheme provides a more accurate basis.

It is understood that, after years of continuous combat control, the province has been effectively curbed illegal pyramid scheme, but still can not be ignored. It was learned that only the first 8 months, Harbin business sector on the outlawed pyramid schemes dens, 31, to disperse pyramid schemes officers more than 2,000 people, investigate cases of 6 cases of more than 20 illegal pyramid scheme key leaders for alleged financial fraud and criminal detention, seizure Fines 7 million yuan. According to Harbin Trade and Industry Bureau to introduce, in recent years, the department did continue to increase the strength of a number of pyramid schemes punish criminals, but driven by high profits, pyramid schemes are still hard to eliminate. MLM organizer name of business, direct sales guise to lull Sheshi young workers are not deep and large secondary school students, to provide them with "network chain", "get rich quick", "two years before they become a millionaire," the MLM concept the implementation of mind control. Harbin seized MLM case involving the "trump card 88", "Wuhan New Field" and other illegal pyramid selling and disguised pyramid selling activities. Are expensive to purchase its common MLM product, and then the "transmission first" approach to MLM.

Provincial Industrial and Commercial Bureau said, "Direct Law" Following the launch, the business sector will be more based on law enforcement can effectively protect the legitimate business, elimination of illegal pyramid schemes, so that a more healthy economic environment of our province.

Consumers: easy to identify illegal network

For the forthcoming "direct method", some people said the one hand, clear the distinction between direct marketing and direct sales to a clear understanding of what is legitimate business, which is illegal. On the other hand, will buy the product quality is guaranteed.

Number of people in a press interview in Harbin found a reference to direct marketing, public first thought was illegal pyramid schemes, always with "money making", "illegal" to link words like, what the line line, rodents and the like. In fact, some people thought this was justified, there are many illegal pyramid schemes in recent years, are fighting the guise of direct sales, hurt many people. Chen said the people Harbin, some relatives and friends around him to do direct marketing or pyramid schemes in, but without exception, have declared their own network are legitimate, and then he is also confused. Over the years many friends joined MLM deceived, so as long as other people mention things like direct marketing he refuse to. Mr. Chen said, if the "direct method" was announced, he would not have worried, because you can easily tell whether a legitimate business. The people Ms. Zhang said that after the introduction of the regulations, the purchase of products can be rest assured, because some products do not have to worry about the quality problem can not find a seller.

Industry: direct sales usher in new opportunities

1992 China allowed the first direct foreign enterprises to enter the Chinese market began, because management is not standardized and the trouble and confusion in the market has never stopped. According to industry sources, "Direct Law" regulations will change this.

According to reports, direct marketing is direct marketing products and services to consumers as a sales methods, sales outlets is not fixed, and different from the permanent retail stores. Direct sales are usually direct sales by independent personnel explanation or demonstration, these sales are usually referred to as direct sales force. If present in Harbin, there is often a major brand name products Train Will, usually hundreds of people involved in a number of sales personnel and staff wish to join the team listened very carefully to lectures, there is no place for some people even Zhanzhao Ting complete lectures. This shows that the direct selling business market place, but in the process of development of direct marketing is not smooth sailing.

In 1996 and 1997, domestic direct selling industry has experienced blossom everywhere in the once prospered, quickly out of control. In this case, April 18, 1998, authorities issued a "total ban pyramid operations on notice" which states that "since the date of issuance of this notification, shall immediately cease all business activities of pyramid selling." And because government departments did not "pyramid schemes" and "direct" use of two separate words, until the people more in the "pyramid scheme", add "illegal" word. Therefore, the "direct" is used to refer to the legal and formal act, and "pyramid scheme" is to become illegal. April 18, 1998, SAIC issued a "total ban pyramid operations on notice," Two months later, it announced the "on foreign Investment MLM companies change the way marketing issues, "which called foreign direct sales company to shop operators, and approved Avon , Amway Other 10 investments in China reached 10 million U.S. dollars over the enterprises can find ways to store additional salesmen. Since then, direct marketing enterprises and a variety of clandestine illegal pyramid schemes exist, so many ordinary people do not know the difference between Dunong.

Industry said, "Direct Law" promulgated, the law will be the height of the distinction between direct and illegal pyramid schemes to protect the healthy development of direct selling companies. In this sense, direct marketing companies will usher in new opportunities for development.

News Links How to distinguish between direct and illegal pyramid schemes

One: whether the entry fee Illegal pyramid schemes have a relatively high entry costs, and direct selling company in the formal is no.

2: with or without relying on high-quality products

Illegal MLM companies often rely on the product is worthless, but the high price of the product, a set of only tens of dollars of value Cosmetic Can be priced a few hundred or a thousand dollars. The standard direct selling company's products are value for money price.

3: product distribution Illegal pyramid scheme business is to make entry of all sales representatives be subscription products, but these products are not marketable, just pull into the next as a salesman's sample or promotional materials. The direct selling company products, distribution channels by the manufacturer to the customer through the marketing representative of the hands, the middle of no other link.

4: security systems with or without return

Illegal pyramid scheme if sales of the company's products can not be returned, or would like to party




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