Public advised not to get involved in MLM business with Fingo: Chong

10 Aug 2019 / 19:24 H.

KUCHING: The Ministry of Domestic Trade and Consumer Affairs has advised the public not to be involved in multi-level marketing (MLM) business with Fingo (M) Sdn Bhd and market their products on the company’s e-commerce online platform.

Deputy Minister Chong Chieng Jen said this is because the ministry did not issue any direct selling licence to the company to conduct MLM business and market products over its e-commerce online platform.

“The ministry has only issued a direct selling licence to Fingo to market their five products as per listed below through traditional and conventional methods (through agents or face to face), and not through online apps or e-commerce,” he said during a press conference at the Democratic Action Party’s (DAP) office here, today.

The five products are An-Nur Agar Shampoo, Sucian Dara, Sniper, 9030 Mix Honey with Cordyceps and Lunia Bird Nest Ess Facial Mask.

The company had launched Fingo, its e-commerce platform, in Malaysia last month.

Chong said the ministry had received complaints from the public that they would receive some money if they were able to recruit new members for the company and could also get commissions when those members buy the company’s products.

“It is the advice of the ministry that if any MLM scheme or direct selling scheme promises high returns on minimal work or high returns on mere recruitment of members, that is probably money scam or pyramid scheme which is against the law,” he said.

Chong said under the Direct Sales and Anti Pyramid Scheme Act 1993, no person shall promote or cause to be promoted a pyramid scheme and any person who contravenes this shall be guilty of an offence.

If that person is a body corporate, partnership or society, that person can be fined not less than RM1 million and not more than RM10 million, and if it is not a body corporate, partnership or society, that person can be fined not less than RM500,000 and not more than RM5 million or to imprisonment for a term not exceeding five years or both.

Chong said under the terms and conditions of direct selling licence, the company is also not allowed to market its product through online unless permitted by the controller to do so, and so far no permission had been granted.

“So far, the ministry has received a few complaints that Fingo is promoting its apps or e-commerce platform in a manner similar to a direct selling method and thus investigation is underway,” he said.

He advised the public to lodge complaints to the ministry through its website portal e-aduan@kpdnhep.gov.my or via WhatsApp to 019-2794317 or visit any of the ministry’s offices nationwide if they sense that Fingo is conducting a multi-level method of doing business to attract people and promote any kind of schemes that promise returns that are too good to be true. — Bernama

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