Green Life, Oriflame and Unicity fined for violations in Vietnam
The Green Life Corporation, Oriflame and Unicity have been fined by Vietnamese regulators.
The fines were handed down following an investigation that revealed the three companies were violating Vietnamese MLM regulations.
The Green Life Corporation, a French-language MLM company with a corporate address in Dubai, was fined $22,600 for engaging in business activities outside of what it was authorized to conduct.
Greenlife also failed to properly and completely fulfil its training obligation for multi-level sales participants and did not grant multi-level sales network member cards to participants.
The company also failed to periodically report to competent state agencies and provided wrong or misleading information about the use of its goods to entice sales people to joint its multi-level sales network.
The VCA claim Green Life is “infamous” in Vietnam for the practice of getting students to take out mortgages, and then using that money to sign up as Green Life distributors.
Consequently the Vietnam Competition Authority has revoked Green Life’s registration certificate.
Stella Ivy Cosmetic Co, who distribute Oriflame products in Vietnam, was fined $7,522 for failing to implement required refund policies and procedures.
The company also operated illegally
in centrally-run cities and provinces without approval from the provinces/cities’ departments of Industry and Trade.
(Stella Ivy) did not carry out or improperly implemented its obligation of training sales staff for its multi-level network, and there were no signed labour contracts between Stella and its sales staff.
The third company, Unicity, was fined $10,620 for ‘violating regulations on the announcement of its headquarters and information on its multi-level sales network.‘
There also appears to be problems with inflated prices, with the VCA observing Unicity ‘spent over 40 per cent of its total revenue for benefits and to pay bonuses to distributors‘.