Dmlm0057 news every network marketing professional should know

MLM news every network marketing professional should know MLM news helps network marketers to stay on top of situations. Here are some of the major headlines of the MLM sector in the country.

MLM is a thriving business all across the world, including India. Read on to know about some of the latest news and events in the MLM industry. This will help you know better about the current scenario and help you review your marketing modules and take appropriate business decisions.

1. Govt. asks states to put a ban on MLM schemes The Center has put forward a proposal to the state governments to ban companies that provide monetary benefits to subscribers for enrolling members to their company. This proposal is a part of the efforts of the Center to eliminate the menace of Ponzi schemes that has become widespread due to the absence of stringent regulations. One of the most bizarre of such cases is the case of Beetal Livestock & Farm based in Gurgaon that promised investors a return of 2 per cent every month, by rearing goats. Market regulator SEBI issued a show-cause notice to the company, but it went undelivered.

After the news of fraud committed by SpeaAasia Online, a Singapore based MLM company, the Central Government started the process of curbing the companies that promised incredibly high returns in a short span for recruiting more members.

A committee comprising the RBI and ministries of corporate affairs, consumer affairs, law and finance was constituted to look into the issue.

2. Govt blocks unscrupulous MLM sites, payments The government is taking various steps to curb the menace on fraudulent MLM companies that have duped their investors.

One of the things that it is doing is blocking their websites and keeping a tab on their online transactions.

The investigative arm of the corporate affairs ministry will work closely with the Department of Information Technology and Central Economic Intelligence Bureau to find out suspect sites and transactions and take stringent legal action. The ministry has also decided to crack the whip on companies that are operating clandestinely.

Corporate affairs minister Moily remarked that the government will soon have rules to check MLMs that have several Ponzi schemes across the country. He also said that the investigative arm of the ministry is working to have in place an early warning system that can help eliminate frauds.

This is a part of the efforts of the ministry to have regulations in place to curb the menace of fraud MLMs. It already has several reports about such companies and the ministry has started acting on the same, the minister said.

Concerned over the issue of increasing Ponzi schemes across the country, the ministry had met with RBI and SEBI to find solutions to the problems. Multi-level companies are not under the direct jurisdiction of any department, and that has caused it to grow unchecked.

3. Govt finalizes rules for MLM companies to prevent corporate fraud The government said that it is on the verge of finalizing some rules for multi-level marketing firms and is working on a system to help detect and prevent frauds.

Corporate affairs minister Moily said that the Serious Fraud Investigation Office (SFIO) - the investigative agency of the Corporate Affairs Ministry has also set up a computer lab for the purpose.

The new rules for the network marketing companies have almost been finalized he said. All the measures that are being

undertaken have sent a positive signal to the corporate sector and is being appreciated by the same, and it is also beneficial for the economy of the country.

4. 87 companies held suspect for MLM schemes Around 87 companies have come under the scanner for running ponzi schemes and some of them have charges of serious frauds against them. A large number of these companies are located in Tamil Nadu and West Bengal.

Raising funds through Ponzi schemes is an offence under the Prize Chits and Money Circulation Schemes Act 1978. The ministry, together with the Trade and Industry Association and some professional institutes such as the ICAI are regularly conducting awareness programs to protect the interests of the small investors.

5. Kerala Police tightness laws on MLMs Kerala Police has decided to strictly enforce the guidelines issued by the state government for direct selling companies and MLMs. They not only have to register, but there is a strict ban on money chain model activities as well as offering incentives to recruit more members to their scheme.

6. Network marketing companies want protection under the Consumer Protection Act In the light of the recent regulations and the widespread mistrust on MLM companies, genuine entities are facing several issues while operating in the country. Hence, these companies have requested the Indian Government to offer them the protection they seek.

These are some of the important news items in the MLM industry that marketers should be aware of.

DNB MLM Software Solutions offers customized software product development services to its customers. We have extensive expertise and experience in network marketing and always work to ensure 100% satisfaction to our customers. For marketers looking for the best solutions to their MLM challenges, we are the one-stop shop for all their needs.