Crackdown on Illegal Multi-Level Marketing: Two Companies’ Files Transferred to Police

The National Competition Commission has referred two cases, Greenleaf and LucMall, to law enforcement authorities for suspected unlicensed multi-level marketing activities.

0
37

According to the National Competition Commission and the Ministry of Industry and Trade, as of August 2025, there are 16 multi-level marketing companies licensed to operate nationwide, with one currently undergoing dissolution procedures.

The National Competition Commission collaborated with police authorities in Phu Tho, Lang Son, Lao Cai, and Son La provinces to verify the operations of six multi-level marketing cases. (Illustrative image)

Notably, during the first eight months of 2025, the National Competition Commission conducted five inspections to ensure compliance with multi-level marketing regulations across five companies.

Based on inspection results, the Commission issued administrative penalty decisions totaling nearly VND 1.2 billion against five companies for regulatory violations.

The Commission also emphasized ongoing collaboration with police agencies to combat crimes related to multi-level marketing. They actively investigate and gather evidence of illegal activities within the industry, forwarding cases to law enforcement for prosecution.

Two unlicensed multi-level marketing entities, Greenleaf and LucMall, have been referred to the police for further action.

Additionally, the Commission collaborated with police in Phu Tho, Lang Son, Lao Cai, and Son La provinces to verify the operations of six multi-level marketing cases.

These investigations have led to criminal charges in several cases involving violations of multi-level marketing regulations.

Sharp Decline in Multi-Level Marketing Participants

Ministry of Industry and Trade data reveals a significant drop in multi-level marketing participants. The first six months of 2025 saw 634,567 participants, a 13.43% decrease compared to the same period in 2024 (732,997 participants). Participation is heavily concentrated within five major companies, accounting for 91% of the industry: Herbalife Vietnam LLC, Amway Vietnam LLC, Care For Vietnam LLC, Tien Su Vietnam LLC, and Unicity Marketing Vietnam LLC.

A concerning trend is the disparity between new participants (101,876) and contract terminations (130,893), leading to an overall industry contraction compared to 2024. Total multi-level marketing revenue for the first half of 2025 reached over VND 7 trillion, a 9% decline year-over-year.

During this period, companies disbursed VND 2.575 trillion in commissions and other benefits to participants, representing 37% of total industry revenue. However, the average commission earned by active participants equates to only 8% of the national average per capita income.

Thùy Linh

– 11:59 17/09/2025

You may also like

Korean Retail Giant to Launch 2-3 Luxury Shopping Malls in Vietnam

Lotte Shopping, South Korea’s leading retailer, has unveiled plans to expand its footprint in Vietnam with the addition of 2-3 new shopping malls. The company aims to double its operating profits by 2030, marking a significant growth strategy in the region.

Affordable Commercial Housing: Shaping the Future of Vietnam’s Urban Landscape

Amid rapid urbanization and the escalating demand for housing, affordable housing has emerged as a pivotal element in shaping the future of Vietnam’s major cities. This segment not only addresses the growing need for accessible living spaces but also plays a strategic role in fostering sustainable urban development. As cities expand, the focus on affordable housing ensures inclusivity, enabling a broader spectrum of residents to thrive in these dynamic metropolitan landscapes.

Unlocking Opportunities: Vietnam’s Ministry of Finance Hosts Successful Investment Promotion Conference in the United Kingdom

On the morning of September 16, 2025 (local time), the Ministry of Finance successfully hosted an Investment Promotion Conference in London, United Kingdom. The event was attended and chaired by Minister of Finance Nguyễn Văn Thắng.

Prime Minister Requests IMF to Continue Policy Advisory and Risk Warnings for Vietnam

Prime Minister requests the IMF to further strengthen cooperation, technical assistance, and human resource training for Vietnam, while implementing programs to support Vietnam’s adaptation to new international economic conditions.

Prime Minister Proposes National Scholarship Fund and Increased Education Spending

Prime Minister Pham Minh Chinh announced that the government will establish a National Scholarship Fund and increase the education budget, aiming to create a strategic breakthrough in workforce training.