Ok guys remember we had a debate abt the rich jerk topic? Some of u say MLM is illegal others, say no. Guess what, it is ILLEGAL except for those defined in the following act:

http://app.mti.gov.sg/data/pages/81/doc/fr...LMOrder_Act.pdf

And anybody convinced of running an illegal MLM scheme can be imprisoned for 5 years and/or fined up to S$200,000.

Ps: Insurance is a MLM, but one of the lucky 'exceptions' according to the law
This shld be enough for all the naysayers.
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How to tell if its illegal? The law looks so "chim" right? Basically if your answer is yes towards the questions below it is ILLEGAL MLM. (esp if it's a Yes to all)
Source: http://www.singaporeexpats.com/forum/ftopi...0526993b7d4fd72

a) Does your MLM require you to pay money up front for product or other "services"? Then it is illegal.

b) Are your MLM "salespeople" allowed to return unused inventory within 60 days for a full refund? If not, it is illegal.

c) Does your MLM advertsing focus on making money easily, and does not talk about the benefits of the product? If yes, then it is illegal.

d) Are your commissions payable when you recruit other members and sell them product to get started? Then it is illegal.


*so far the person has explained it right and in accordance to the law

This post has been edited by Kuja: Jan 2 2006, 07:20 AM

hmmmmm.. interesting..
but how to differenece those MLM which one is illegal.

read the act. it states there oredi

anything which isnt covered by the act, is deemed illegal MLM/Pyramid according to our law

thanks for the info..

this is Singapore lol..as wat Sim Woon Ho said, while driving, if no sign say can turn, it means you cant, not like other countries; you can turn unless there is a 'no turn' sign lol:P

Haha...

That's a good one...

Wrong lah.....

If no sign say can turn....You can still turn...........

As long as you don't get caught......<- key point

Maybe we should call it direct selling and not MLM because many of the so-called MLM companies that we know such as Amway and NuSkin are legal and registered in Singapore.

i read the today newspaper a few day ago.. they show the millonares who join the NuSkin. they call themselves Direct selling company.. not MLM company.

to me.. the line between Direct selling and MLM very blur.. or they are the same.

To the ROC and NuSkin company , the distributors are dealing in direct selling as they 'sell direct' to the consumers rather than thru a shop-front.

To the taxman and NuSkin distributors, they are into commission-based payout based on MLM as they pay up to 6 levels deep. The top millionaire in Nuksin Singapore is Rayne and he achieved the 1st million in 2-3 years and 5th million in 4 years due to the expotential growth in China.

tell the government lah. it states in the act MLM

Thanks for all info.
But MLM so common nowadays, as long u think it's worth or special can buy la, but since illegal so dun expect too much, haha...

I agree >.<
But when they try to recruit u in or force u to buy (like they did to me)... time to turn the law on them to make them pee in their pants

ps: edited my 1st post to include explanation of the Act as explained by someone else in another forum