The parliamentary physique instructs the federal government to cease issuing new licenses for the network marketing enterprise – myRepublica
KATHMANDU, Aug. 5: The Parliamentary Committee on Industry, Trade, Labor and Consumer Protection on Tuesday asked the Department of Industry, Trade and Utilities to stop the process of licensing network marketing companies based on approval by the Government have waited to start operations.
According to the Ministry of Trade, Utilities and Consumer Protection, six companies have currently applied for operating permits. Relying on the provisions of the Law on Direct Selling of Goods (Management and Regulation) of 2018, the parliamentary body has imposed restrictions that allow companies to work on pyramid-based marketing systems.
This is because the parliamentary panel has received over two dozen complaints against network marketing companies currently in operation, according to the chairman of the panel, Bimal Prasad Shrivastav.
Nature Herbs International, Kumaripati; iboss Global International, Chabahil; New Bibek Enterprises, Ekantakuna; Healthy Living Nepal, Battisputali; Care Matters International, Chabahil; Uturn International, Tokha and Global Oriens Nepal, Balaju have received permission from the Market Regulator to do network business in the past 1 months. It has also been reported that some of these companies have been involved in similar deals in the past.
The network marketing companies have created controversy after it was discovered that many of them cheated on their customers and cheated on billions of rupees. Unity Life International, Herbo International, Gold Quest International, Crystal Vision International, Best World Business Link and Robious International, among others, had caused people to suffer in the name of the networking business a decade ago. Unity Life International alone has defrauded around 4 billion rupees.
In light of the growing number of complaints, the parliamentary panel formed a task force last week to investigate the controversial network marketing companies that were recently licensed. The subcommittee has launched an investigation into the modality of the operations of these seven companies.