A gazette was published on Thursday passed by the President on September 2 regarding the control of MLM companies and protection of related stakeholder's interests. All charges indicted under this ordinance will be considered punishable and non bail able.
The ordinance avers that any person found guilty of selling homologous products under the MLM business will be disposed between 5 to 10 years of jail along with 50 lakh taka fine. Moreover, anyone found guilty of carrying out MLM activities without license will be awarded with 5 to 10 years of jail along with 50 lakh taka fine.
The gazette also mentions that involvement in any other type of sales activities without packaging may lead to at most 2 years of jail with 2 lakh taka fine, unjustified price hikes will also be counted as a crime and may lead to a minimum of 1 to a maximum of 3 years of jail with 3 lakh taka fine. In addition actions will also be taken against sales of inferior quality goods, with a maximum of 5 years of jail and 5 lakh taka fine.
The ordinance defines MLM activity as a means of selling or distributing goods or services through a specialized network of multiple layers on conditions of commission or dividend or any other kind of compensation.
The ordinance has clauses to ensure that no company can act as a MLM company without license. The goods listed as transact able under MLM system are household items, electric and electronic items, home appliances, cosmetics and toiletries, herbal products, telecommunication services, training related services and agricultural goods. However, the government holds the jurisdiction to change the list of items through a gazette notification.
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