National Competition Commission Halts Toan Thang’s Multi-Level Marketing
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The national competition Commission has announced the termination of several multi-level marketing operations, including Toan Thang Deputy Company Limited, due to expired registration.
The National Competition commission (Ministry of Industry and Commerce) has ordered the cessation of multi-level sales activities for several companies, including Toan Thang Deputy Company Limited.
The reason for the shutdown is the expiration of the company’s marketing registration certificate. The notice of termination was initially submitted to the Department of Competition and Consumer Protection (now the National Competition commission) on August 28, 2020.
According to the latest announcement, the management agency stated that Toan Thang had requested the release of its bank deposit following the expiration of its multi-level marketing registration.
the Ministry of Industry and trade requires that multi-level marketing participants and relevant authorities responsible for addressing violations in these activities must notify the Ministry within 30 days if multi-level marketing companies fail to meet their obligations regarding the management of commercial marketing activities.
Recently, many multi-level marketing companies have ended their marketing activities on several levels (photo: Sen Viet).
“If no notification is sent to the Ministry of Industry and Trade within the aforementioned period, the Ministry of Industry and Trade will issue a document authorizing the Marketing Company on several levels to withdraw the deposit,” the competent authority stated.
The deposit serves as a financial guarantee for a multi-level marketing company’s obligations to its participants and the State.The bank blocks the deposit for the duration of the company’s operations, and it can only be accessed with the written consent of the Ministry of Industry and Commerce, except under specific circumstances.
Toan Thang Franchise Company Limited,headquartered in District 1,Ho Chi Minh-Ville,originally obtained its registration certificate for multi-level sales activities on July 27,2015,with the 8th amendment issued on March 14,2019.
Statistics indicate that in 2024, the total number of individuals involved in multi-level marketing reached nearly 700,000, a decrease of approximately 400,000 compared to 2019. Though, despite the decline in participation, the total turnover of multi-level marketing companies has increased.
In 2024, multi-level sales turnover reached 16,206 billion VND, a 28.9% increase compared to 2019’s 12,575 billion VND. The average commission and bonus amounted to approximately 951,000 VND per month, equivalent to 12% of the country’s average per capita income in 2024. Currently, only 16 companies nationwide hold registration certificates for multi-level sales activities, four fewer than at the beginning of 2024.
“If no notification is sent to the Ministry of Industry and Trade within the aforementioned period, the Ministry of Industry and Trade will issue a document authorizing the Marketing Company…”
