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Multilevel marketing (MLM) vs pyramid scheme - from legal perspective


A. Rahman, Aspalella and Nik Mat, Nik Kamariah (2001) Multilevel marketing (MLM) vs pyramid scheme - from legal perspective. In: Persidangan Kebangsaan Undang-Undang Perniagaan 2001: Peranan dan cabaran, 14 Julai 2001, Quality Hotel, City Centre, Kuala Lumpu.

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Abstract

Multilevel marketing is a popular marketing method often practiced by direct selling companies.However, it has been manipulated in the form of the illegal pyramid scheme or commonly known as the get-rich-quick scheme, This paper intends to discuss the differences between MLM and pyramid schemes, the regulations on MLM and anti-pyramid laws in other countries, and the loopholes of the existing Direct Sales Act 1993 in Malaysia especially regarding provisions on MLM technical operations.It was suggested that amendments or provisions should be made on the MLM operations particularly provisions concerning start-up fees, inventory loading and a balanced compensation system.Additionally, consumer education and awareness as well as stringent enforcement should also be enforced.

Item Type: Conference or Workshop Item (Paper)
Additional Information: ISBN: 983-2078-17-2 Anjuran: Sekolah Pengurusan, Institut Perundangan Korporat, Universiti Utara Malaysia
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
K Law > K Law (General)
Divisions: College of Law, Government and International Studies
Depositing User: Dr. Aspalella A. Rahman
Date Deposited: 22 Apr 2014 02:24
Last Modified: 22 Apr 2014 02:24
URI: http://repo.uum.edu.my/id/eprint/10802

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