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Adv.Aiyer VLV (Proprietor)     14 September 2009

Shouldn't govt declare Network marketing/MLM ILLEGAL!?

We think we are in advanced civilisation. We have eradicated bonded labour. But it is cloaked in the name of NETWORK or MULTI-LEVEL MARKETING 

Contract Act makes any agreement without consideration void. 

If a person gets a placement for someone he can take 1 time placement fee (reasonable level). However, if he signs an agreement that every month and every earning this person gets will be shared with placement agent, it is void and illegal.

Network marketing works on similar ground. Just because someone joined above you brought you into agreement with the business company, you are to share your income throughout your life, not only to him, but also to people (who have no privy to this illegal agreement) above him in the tree.

Comedy is - one such pioneer in (Money Chain in the name of)  network  marketing AMWAY proposed to law ministry, proposing law to regulate network marketing. That network's US website states 'any one stating change in purchase habit will give you profits will be proceeded against' - obvious if all change to network no one can make money

but their own marketing arm NETWORK21, in which CEO. is interested participates and videos of management of business company participation are shown, claims exactly the same. (e.g. the network21 states instead of dealers, ads and celebrity making money it is distributed to network - toothpaste which other brands price at Rs.15 is Rs.120 by this company - no logical reason). Business meetings are obnoxious parade of people who made money - with no mention that it is only bakras of network who made those rich.

Should law community not protect gullible people from losing precious time, money and bring justice.



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