The federal government is stepping up measures towards network marketing operators – myRepublica
KATHMANDU, Sep 28: The Department of Commerce, Supplies and Consumer Protection has written to the Central Investigation Bureau (CIB) to conduct detailed investigations into the companies involved in the member-based network businesses.
According to the department’s officials, the regulator asked the CIB to investigate 21 companies and 50 people on suspicion of being involved in the network marketing business. The department initiated the move after receiving complaints against these companies and individuals.
Netra Prasad Subedi, director general of the department, said most of the complaints were against companies operating in the Kathmandu Valley, and few were from Tarai districts.
Last week the department issued a public notice warning of strict measures against those who conduct such business. The Ordinance of the Law on Direct Sale of Goods (Management and Regulation) of 2018 has prevented everyone from doing pyramid-based network marketing.
According to the department, two companies – Indus Bibha and Pashupati Bibha – were grilled on the same charge last week. It is reported that most of the network marketing businesses are run by overseas firms by hiring Nepalese agents. These companies have returned money by selling their products through network companies.