http://thestar.com.my/online/newsreport.asp?file=/2000/6/8/nation/0801fbtr.asp&newspage=nationTitle: STAR ONLINE: News Article
8 2000
Sovereign Candlestand
RM 120
BUY NOW
Search Websites Malaysia Worldwide
e-Pyramid scam
Ministry probes firm offering dubious scheme
By Faridah Begum
KUALA LUMPUR: E-commerce companies are the latest target of the Domestic Trade and Consumer Affairs Ministry for suspected pyramid trading practices.
Minister Tan Sri Muhyiddin Yassin said yesterday he had directed officers to investigate such companies although they came under the purview of the Energy, Communications and Multimedia Ministry as pyramid schemes was an offence under the Direct Selling Act 1993.
He had ordered his officers to investigate one such company after getting feedback that it was recruiting members in a way similar to a pyramid scheme.
Describing it as a dubious scheme, he said the company allegedly allowed members to earn money by recruiting more members without selling a legitimate product.
Refusing to name the firm, he said it was one of the many e-commerce companies that had sprouted here lately.
"We view this seriously and hope that the public is not taken in by their too-good-to-be-true deals,'' he said, speaking to reporters after his ministry's weekly post-Cabinet meeting.
He said the e-commerce scam was the latest in a series of get-rich-quick schemes that had cropped up.
The ministry was also training more officers in e-commerce practices to nab the culprits who operated these scams.
Muhyiddin said in view of the severity of such scams and the mushrooming of such e-companies, no new direct-selling licences would be issued for a year.
Direct-selling companies should be operated on a base of products and services that were legitimate where its members or distributors were entitled to commissions based on their sales.
"Their system should not be based on a member having to pay a certain sum to be part of the system and then to recruit others in order to earn back their initial capital.
"This is not sanctioned by the Government and is not a practice by a legitimate company,'' he said.
Muhyiddin also urged the public to report to the ministry's enforcement division if they came across any sales at prestigious venues claiming to sell authentic branded goods but were instead counterfeit products.
Other stories
Nation Headlines e-Pyramid scam Ling: My task is to enhance ties Chinese community welcomes Ling's decision Dr Ling returns to hectic schedule PM to deliver keynote address on 'future of Asia' Police fear rampant fraud from credit card skimmer Eusoff over-reacted to my comments, says Dr Rais Bicycle for seven to raise funds Keadilan Youth leader quits Military rescue option seems imminent 'Four hostages need hospital treatment' Malaysia says no to use of force WTO urged to resolve labour and trade conflict HMs rapped for stopping pregnancy check-ups ACA and police tie up to fight graft 'Address Fijian socio-economic issues' Malaysians in Solomon Islands safe Funds needed for elephants in distress IT course to help youths secure jobs Education D-G: Many schools lack character and identity
Copyright © 1995-2000. Star Publications (Malaysia) Bhd. (Co No. 10894-D)
All rights reserved.
