MLM in Malaysia - Ain't That Pathetic?

MLM in Malaysia - Ain't That Pathetic?

 Souvenir daripada Hazwani... she's the best!

Korang pernah cerita rusuhan besar-besaran di China pada tahun 1998 sampai merebak ke banyak bandaraya, dan sampai ada yang mati merusuh? Pehal? Rusuhan pasal isu syarikat-syarikat MLM yang buat "pyramid-selling" - downline cari downline cari downline, dapat komisen up and up and up. Sejak itu China haramkan terus semua MLM, walau pun kemudiannya "direct-selling" dibenarkan pada tahun 2003. Itu pun disebabkan China mau join WTO dan syarikat MLM lintah-darat tu pulak semua datang daripada U.S., terpaksa jugaklah China mengalah pasal isu ni... tapi mengalah sket aje. Jadi, direct-selling dibenarkan... cuma, "an interim solution was reached in which direct selling companies could offer their products through fixed locations in which customers came to the fixed locations to purchase the products"... hahaha! I love Hu Jintao! Kalau MLM memang dah diharamkan, apatah lagik bzns-bzns yang berunsurkan skim piramid terang-terangan? Rakyat China sampai la ni ketakutan nak buat skim piramid dalam apa bentuk sekali pun. Jangan harap la kalau mende macam LoginFB100, Hyprobulksms, Bioasli, VIPOnline, Emall, Ads4Faks, Aleacorp, Gelang AC Mang, E-Dymium, dan berlambak lagik skim piramid yang berkeliaran di Malaysia ni (untuk santapan anak Melayu yang dungu dan tak beragama) boleh dapat berkembang di China. Walaupun market ada lebih 1 billion umat, a really huge market - skim piramid almost zero! Sapa aje buat skim piramid kat China, dapat tangkap dan sabit kesalahan, hukumannya tembak sampai mati - very simple ha? Memang cun meh! And you all think China is heathen communist country. Oi! Orang Islam Malaysia, takde malu sikit pun ka dey? Orang Islam konon...

Quote: "In a stunning upset against MLM schemes and promoters, the government of China has passed a law that outlaws the payments of commissions on purchases made by "downline" recruits in the scheme. News reports from China indicate that legitimate direct selling, based on retail selling to the public, not endless chain recruiting, has been approved in the country. The new law was urgently awaited by the MLM companies, which had been banned in China since 1999, following riots and the revelation of pyramid schemes masquerading as "direct selling" companies. Most MLM companies believed China would legalize US-style recruitment scams. Technically such scams are illegal in America, but the Federal Trade Commission seldom prosecutes them. MLM companies have contributed millions to Bush administration and successfully lobbied against law enforcement. They expected China to follow America's example in allowing recruitment schemes.", end of quote. Ain't that something?

  

Prohibition of Pyramid Selling Regulations

2005-08-23 From: The State Council
(Promulgated by the State Council on 23 Aug 2005 and effective as of 1 Nov 2005)

  

PART ONE - GENERAL PROVISIONS
  

Article 1 These Regulations have been formulated in order to prevent fraud, protect the lawful rights and interests of citizens, legal persons and other organizations, safeguard the economic order of the socialist market and maintain social stability. 

Article 2　For the purposes of these Regulations, the term “pyramid selling” means acts that interfere economic order and affect social stability by which an organizer or operator recruits personnel and seeks illegal benefits by means of calculating and paying remuneration to the recruited personnel on the basis of the number of personnel directly or indirectly recruited by them or their sales performance, or requiring the recruited personnel to pay certain fees as a condition of being qualified for participation. 

Article 3　Local people's governments at and above the county level shall strengthen their leadership in investigating and handling pyramid selling, and support and urge the relevant departments to perform their regulatory duties in accordance with the law. Local people's governments at and above the county level shall set up such mechanisms as required for coordination in investigating and dealing with pyramid selling and provide timely coordination and solution to major issues that arise in investigating and handling pyramid selling. 

Article 4　The administration for industry and commerce and the public security authority shall investigate and handle pyramid selling within their respective scope of responsibilities in accordance with the provisions hereof. 

Article 5　While investigating and handling pyramid selling in accordance with the law, the administration for industry and commerce and the public security authority shall adhere to the principle of integrating education with punishment, and educate citizens, legal persons and other organizations to conscientiously abide by the law. 

BLA BLA BLA..... at MOFCON People's Republic of China

Macam aku dah terangkan sebelum ini dalam banyak entry, benda MLM dan skim piramid ni simple aje. Ianya bukan sangat isu agama, atau isu masyarakat yang nak berniaga, atau isu free-market yang disanjung oleh alkafirun Amerika... ianya hanyalah isu matematik aje nye pun bang wei. Takde complicated nya. Kalau sistem perniagaan ada syarat menaja orang, dan setiap ahli yang join ada syarat yang sama (duplikasi), maka ianya jadi "pyramid-selling" bila jumlah ahli meningkat secara eksponensial dan crash/collapse akhirnya akan berlaku bila bilangan ahli sudah mencapai peringkat tepu. That's it... tak kesah la ko nak jual spenda keramat ke, nak jual gelang Ding Dang ke, nak jual tuition kat tenet ke. Apa Malaysia punya umat belajar Matematik lain daripada negara China ke apa? Matematik USA style di mana sapa yang pencurut join MLM akan kerugian begitu sahaja... but, that's OK, because those poor suckers are just a bunch of losers who join it late in that MLM so and so... is that it brutha?

Sebelum ni pun, lama jugak aku musykil kenapa MLM dan skim piramid kat negara jiran kita Singapore macam tak idup aje. Awek lama aku, buah hati pengarang jantung aku dolu-dolu orang Singapore (yang sekarang ni tengok muka aku pun dia dah tak mo - tapi aku memang confident dia jadi tak keruan bila teringatkan kesah lama kami bercengkerama kat Tampines - ganas dan romantik meh). Aku perasan macam umat Singapore tu semua tak minat aje buat kerja cari downline ni, tak macam rakyat Melayu yang sebok lari sana-sini cari downline/affiliate/member. Bebudak Melayu terencat akal tak abis sekolah yang perangai macam sakai (bukan yang orang asli tu) sampai letak kat facebook dengan gambar mengangkang kipas duit pinjam, bergambar dengan kereta mewah ntah sapa punya, cakap ayat hebat mengalahkan ahli politik BN (or PKR, the f**k do I care?) - macam monkey gersang kena gigit kerengga atas pokok manggis yang buahnya dieksport ke US dan diproses kat kilang dan diimport balik kat Malaysia sebagai jus keramat oleh skim piramid berproduk Vemma... what the shiiiit?! Silakan baca dan nilai fakta berikut di FAQ di: Ministry of Trade and Industry Singapore.

1. What is Multi-Level Marketing (MLM) and Pyramid Selling? 

A Multi-Level Marketing or Pyramid Selling scheme will typically require participants to pay an upfront charge. In return, the participants are promised financial rewards for each additional participant recruited, as well as all new participants who are in turn brought in by their recruits - hence the pyramid-like structure. As more salespersons are recruited, participants hope to recover their upfront charges and earn sizeable profits. However, such a pyramid schemes will eventually collapse when they run out of new recruits, resulting in those salespersons at the bottom of the pyramid losing all their upfront charges. In the interest of consumer protection, the Government's regulation effort is targeted at preventing the proliferation of such high-risk schemes.

Aidid >> MLM atau pyramid-selling adalah model bzns di mana ahli perlu bayar yuran bila dia join, dan ahli pula dijanjikan keuntungan daripada pencarian ahli (downline), di mana ahli baru itu jugak akan mencari/membawa ahli baru yang lain - itulah struktur piramid bzns tersebut. Skim piramid sebegini akan "collapse" bila tiada lagi ahli baru didapati, dan menyebabkan ahli yang paling bawah kerugian. Itu kata kerajaan Singapore - hari itu aku cakap apa dey? Ah! Itu jugak la aku cakap berulang-kali kat blog neh! Haiiisshh!

2. How do I recognise a pyramid selling scheme? 

Many pyramid schemes often disguise themselves as sellers collectors' items, software, training programmes, etc, when all they are interested is to make a quick buck through recruitment. Members of the public who attend sales talks must be vigilant to such schemes. Illegitimate MLM schemes usually share the following characteristics: When the promoter hype about how easy it is to earn money, people can get very rich in a very short time and that the way to earn money is by recruiting others to join the scheme; The so-called product that you are supposed to sell is not something you would normally buy at its price; Participants are required to invest money into the scheme, whether in the form of a joining fee, or buying inventory. Remember - there is no easy money, you must believe in what you are selling and you should not put your money at unnecessary risk.

Aku >> Intisari artikel 2:  MLM cilanat ada ciri berikut - boleh kaya dengan cepat dan caranya adalah dengan mencari mala'un lain untuk join, dan harga produk mahal gilabab (macam jus buah manggis/acai berry Peel Fresh atau Fruit Tree yang jual RM5.30, tapi dengan MLM jual RM192.50 eXfuze, RM135.00 Monavie, RM171.00 Vemma, RM160.00 Xango - bahalol nak mampos orang Melayu nye pun buat keje yahudi-style!)

3. How are MLM activities governed in Singapore?

MLM activities in Singapore are governed by the Multi-level Marketing and Pyramid Selling (Prohibition) Act. The Ministry of Trade and Industry administers the Act. The original Multi-Level Marketing and Pyramid Selling (Prohibition) Act was first passed in 1973. In June 2000, Parliament approved an amendment to the Act to widen the definition of pyramid selling to catch all business schemes that were multi-level in nature. However, as not all multi-level marketing techniques are undesirable, the Government concurrently enacted the Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order (hereafter, referred to as the 'Exclusion Order') to exclude legitimate businesses from the Act, such as insurance companies, master franchises, and direct selling companies which fulfill certain criteria. This Exclusion Order was implemented in June 2000. 

Dey >>Pengharaman MLM daripada tahun 1973 lagi wei! Patut la orang Singapore punya life tersusun rapi dan culture perniagaan kat sana 1st class! Hidup rakyat Singapore restrictive - true, but they're happy with their government. Takde nya ahli politik nak bercakaran tak tentu hala beb. Kerja birokrasi semua jalan. Dan kaum Melayu di Singapore happy aje aku tengok. Perkauman pehal?

4. Why is there a need to have an Exclusion Order? 

Not all multi-level marketing techniques are undesirable. There are legitimate businesses using innovative sales tactics, and should not be lumped together with pyramid schemes. Hence, the Government enacted the Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order (hereafter, referred to as the 'Exclusion Order') in June 2000, to exempt legitimate businesses from the Act. The following categories of businesses were exempted: 

(1) Insurance businesses that are registered, approved or licensed under the Insurance Act, the Insurance Intermediaries Act 1999 and the regulations made thereunder; 

(2) Master franchise schemes and direct selling schemes which satisfy the following conditions: 

the benefit received by any promoter or participant is as a result of the sale, lease, license or other distribution of a commodity and not as a result of the recruitment of additional participants; the promoter of the scheme shall not knowingly make false or misleading representation or omission relating to the scheme or the commodity; the promoter shall not make any representation on the benefits other than those allowed; there should be a clearly stated policy on refund or buy-back guarantee.

After the Exclusion Order was enacted in 2000, the Government received feedback that the provisions in the Exclusion Order were not sufficiently clear. Some members of the public were also confused by claims of legitimacy by companies and often requested for the Government to clarify if particular schemes were legitimate. In response to the feedback, the Government reviewed the Exclusion Order, and subsequently amended the Order in 2001.

Hey >> Detail, detail, detail...

‎5. Why is there a need to amend the Exclusion Order? 

As a result of developments in the market and suggestions from the public, the Ministry of Trade and Industry, in consultation with the industry, and taking into consideration the public's comments, has come up with a revised MLM Exclusion Order. 

6. What were the amendments made in 2001 to the Exclusion Order? 

The Exclusion Order 2001 continued to maintain that insurance companies and master franchises would be excluded from the MLM Act.  However, it also introduced the following rules for direct selling companies: 

Safeguards - A participant cannot be required to provide any benefit or acquire any commodity in order to become a participant in the scheme, other than the purchase of demonstration equipment which is not for resale, at no more than cost price and for which no commission can be given out. A legitimate multi-level marketing scheme would not impose a financial risk on salespersons. For example, salespersons should be entitled to full refunds, under reasonable commercial terms, for any inventories kept or purchased by them which are not sold to end consumers, so long as the inventories are returned within a period of 60 days. 

Behavioural checks - The companies must not misrepresent the scheme as get-rich-quick opportunities, and should not use fraud, coercion, harassment, or unconscionable means to force people to join the scheme. Instead, the companies should focus their efforts on promoting the quality and features of the products. If a company wishes to show potential participants the earning potential, they must keep records of the maximum, minimum, mean, mode and median earnings of their salespeople in the past. 

Sharing of commission - It is all right for a salesperson to share commissions from several layers of salespersons recruited by him. However, such commissions must be generated by sale of the product or service in question, and not through the recruitment of additional participants into the scheme.

Anak Mu'addib >> Simple premise:

Safeguards - skim MLM tidak boleh meletakkan risiko perniagaan yang berlebihan kepada jurujual, dan boleh dapat full-refund dalam masa 60 hari dalam pemulangan produk.

Behavioural checks - Tidak boleh menggunakan penipuan, hasutan, ugutan dan perkara yang tak wajar dalam mengajak bahalol lain untk join skim. Syarikat mesti fokus kepada kualiti dan kegunaan produk. Kena ada rekod keuntungan dan pendapatan jurujual yang lepas-lepas dari segi maksimum, minimum, min, mod dan median.

Perkongsian komisen - hanya melalui penjualan produk dan bukan pencarian downline baru.

7. When did the amended Exclusion Order come into effect? 

The amendments to the Exclusion Order were published on 14 December 2001, and came into effect on 01 January 2002.

8. Where can one obtain the amended Exclusion Order? 

The full text of the current Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order can be accessed at the MTI website.

9. What are the penalties for being in breach of the MLM Act?

During the review of the MLM Act in Year 2000, the fines were raised from $30,000 to $200,000. Currently, a conviction under the Act will result in a fine of up to $200,000 or to imprisonment for a term not exceeding 5 years, or to both. The fines are for the following offences: promoting or participating in a multi-level marketing, or pyramid selling, scheme or arrangement. Registering a business which is designed to promote multi-level marketing, or pyramid selling, scheme or arrangement. Registering a company which proposes to promote multi-level marketing, or pyramid selling, scheme or arrangement. In addition, the Act empowers a Court that convicts a promoter or participant of a multi-level marketing or pyramid selling an additional penalty of an amount not exceeding the amount or value of any benefit which the promoter or participant has received. This additional penalty ensures that the Act serves as an effective deterrent to potential offenders.

Yeop >> Promote, daftar atau menyertai MLM, pyramid-selling atau pyramid-scheme - sumbat aje dalam jail (Penjara Changi masih ada katil kosong). 

10. What would happen to "innocent victims" who participated in pyramid schemes unknowingly, and who did not benefit in any way before the scheme closed down? 

Under the Act, all persons who participate in multi-level marketing or pyramid selling would commit an offence. This is because the participants would have played an active but destructive role of attracting others into the scheme. We believe that this is the best way to deter the potential promoters of such schemes. Hence, we would urge the public to be extra careful and to exercise due diligence when deciding whether to participate in business schemes. They should be doubly suspicious of get-rich-quick promises. If they believe empty promises and hand over their money to the promoter, chances are they will be cheated of the money. At the same time, they might be guilty of committing an offence as they are participating in an illegal scheme. 

Aidid >> Artikel 10 adalah aku punya peberet! Sapa-sapa yang join MLM dan skim piramid di Singapore adalah dengan sendirinya melakukan kesalahan. Ini kerana ahli itu sendiri telah melakukan perkara sumbang sebab bila dia join dan bergerak aktif, dia sendiri ajak orang lain join, yang akhirnya akan membawa kepada "collapse" - jadi dia sendiri pun boleh di sumbat masuk jail. Kat Malaysia... huh? "Saya tak tahu tuan, saya tak faham isu sebenarnya, saya tak sengaja bang, saya kompius wadefak"... a bunch of real freakin' assholes!

11. Is there a special license required to conduct those types of businesses listed in the Exemption Order? 

Companies whose business schemes fall under the Exclusion Order are not required to obtain a special licence. 

12. Can the operators and members of the public seek the Government's advice on the legality of their business schemes? 

It is not proper, nor appropriate, for Government agencies to give legal advice on which scheme is legal and which is not, as this would circumscribe the Government's effectiveness in enforcing regulation against fraudulent schemes that may evolve over time. Instead, the operators and members of the public should acquaint themselves with the relevant laws, and seek legal advice from lawyers, where necessary. Lawyers should be able to advise on specific cases, according to the context and how the actual events unfold. 

Hello >> Artikel 12 ni pun best jugak. Kerajaan Singapore takde nak kasi amaran atau penerangan kepada mana-mana syarikat sebelum nak buat skim/perniagaan apa-apa, dia orang suruh cari lawyer sahaja - there will be no free legal advice. Salah buat bzns, berasap bontot. Sempoi meh! Kalau ikut undang-undang sebegini, KhairolR, Hairul Nizam, ND Lala, AC Mang, Akhil Hayy dan Dajjal B. Setan, semua dah duduk penjara Kajang dah neh! Go go Singapore! I wonder if she's still interested in me? Hmmm.... I got 8 kids already maaaa!

13. Which agency should a member of the public report to, if they suspect that certain business schemes are actually illegal multi-level marketing or pyramid selling schemes? 

The Commercial Affairs Department (CAD) investigates pyramid selling schemes. If you suspect a scheme has contravened the MLM Act, you can report to the CAD at telephone number 63250000 or lodge a report at 391 New Bridge Road, #06-701 Block D, Police Cantonment Complex, Singapore 088762.

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I can tell ya now, this is an "article of shame" in this blog. I am somehow ashamed of the backwardness of our dear old country... sebok cakap Malaysia dah bertambah maju, sebok mahu julang nama Malaysia di serata dunia, sebok nak buat bangunan 100+ tingkat yang ntah diperlukan ke tidak, sebok Islam Hadhari whatsoever. Kemajuan kejadahnya? Basic maths pun ramai yang tak faham-faham. Siyes... sampai sekarang berlambak yang masih tanya aku, pehal maths pulak jadi isu dan apa pentingnya isu ekponensial dalam pengharaman MLM? Dalam perniagaan kan ada untung dan rugi. Tell that to the government of Arab Saudi, China dan Singapore. They must have lousy professors, economists and politicians huh? Memang sedih meh... apatah lagi bila aku teringat yang aku pernah belasah sorang lecturer yang mengajar subjek matematik kat UiTM Arau... belasah kat facebook la, di mana minahnya berjaya dapat cari 79 downline (setakat Julai 2010) dalam bzns kerbausms skim piramid Hairul Nizam. Gila baboon punya mungkar skim piramid, dia cakap dia cari rezeki yang halal. Apa nak jadi dengan orang Melayu? 

Sebelum ni, aku banyak kali mention tentang pengharaman MLM dalam apa jua bentuk di Arab Saudi, sebab Majlis Fatwanya dah mengeluarkan fatwa atas nas dan dalil-dalil yang dikemukakan oleh ahli panel majlis. Tapi tak ramai orang Melayu (yang bangga perasan dia beragama Islam, luar dan dalam, katanya) yang kesah pun pasal ni, bila dia dah dapat genggam duit downline tu semua dalam tangan. Arab Saudi tu bukan negara kita, Malaysia ni negara kita. Islam Arab Saudi Wahabi la katakaaaan. Macam syiah gitu ye beb? Alien from outer space! Kalau rajin, korang pegi la kat forum carigold - thread eXfuze ke, Monavie ke, dan beberapa thread lain yang ada nama aku somewhere (last time I check, ada 42 thread nama aku di mention... hahaha!) - semua buat tak tahu aje pasal fatwa tu, sebab majlis fatwa kebangsaan dah udoh cakep hukum MLM HARUS maaa! Walau pun harus dengan bersyarat, abaikan aje la syarat tu. Allah bukan perasan pun.

Karya Hazwani memang class!

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Meanwhile, later in the afternoon....

Baine was asking, what song did I have in my mind when I wrote this article? Weird that he asked, I thought of one actually. I grew up with this guy, and more than 20 years later, I still listen to John Mellencamp regularly. I have all his albums in my collection. I guess it fits the occasion here...

Oh, they like to get you in a compromising position,

They like to get you there and smile in your face,

Well, they think they're so cute when they got you in that condition,

Well I think it's a total disgrace, and I said,

I fight authority, authority always wins,

Well, I fight authority, authority always wins.

Well, I've been doing it since I was a young kid, I come out grinnin',

Well, I fight authority, authority always wins.

So I call up my preacher, I say, "Give me strength for Round 5"

He said , "You don't need no strength, you need to grow up son"

I said, "Growing up leads to growing old and then to dying,

And dying to me don't sound like all that much fun", so I said,

I fight authority, authority always wins,

Well, I fight authority, authority always wins.

Well, I've been doing it since I was a young kid, I come out grinnin'

Well, I fight authority, authority always wins...