Government to shut six e-commerce websites over MLM operations

The Commerce Ministry has decided to temporarily close the websites and Facebook pages of six e-commerce companies involved in illegal online multi-level marketing (MLM) activities. These companies are Tholay, Glitters RST World, Annex Worldwide Ltd, Excellent World Agro Food and Cosmetics Ltd, Alif World, and Green Bangla E-Commerce Ltd.

This decision was made during a meeting chaired by Md Hafizur Rahman, the Additional Commerce Secretary and Director General of the WTO Cell at the Commerce Ministry. Abdul Waheed Tamal, General Secretary of the E-Commerce Association of Bangladesh (E-Cab), was also in attendance.

Hafizur Rahman told The Business Standard, "There have been allegations and evidence that these companies have been running MLM businesses online, which violates the Digital Commerce Guidelines. Consequently, the authorities have decided to temporarily shut down the websites and Facebook pages of these companies."

He added, "We will provide the Bangladesh Telecommunication Regulatory Commission (BTRC) with the IDs of these websites and Facebook pages and request that they be taken down."

Commerce Ministry officials noted that MLM schemes began swindling money from customers in Bangladesh towards the end of the last century. The practice gained widespread attention when Destiny started operations in 2000, leading to a surge in MLM activities across the country.

Previously, Jubok was accused of embezzling large sums of money through MLM schemes. In 2012, when allegations of fraud and money laundering were made against Destiny, the government introduced MLM business regulations the following year.

Under these regulations, companies must obtain registration from the Commerce Ministry to legally operate an MLM business. However, the issue resurfaced last year when popular e-commerce platforms Evaly and E-orange were accused of misappropriating customer funds through MLM practices. Evaly's Managing Director Mohammad Russel and E-orange owner Sonia Mehjabin are currently imprisoned.

Commerce Ministry officials mentioned that after the MLM policy was introduced, several companies, including Destiny 2000, applied for registration. Four companies were granted licenses, which had to be renewed annually. However, since 2015, none of these companies have renewed their licenses, meaning there are currently no legally registered MLM companies in Bangladesh.

According to the law, individuals found guilty of operating an illegal MLM business can face up to 10 years in prison and a fine of Tk50 lakh.
 

Source >> https://www.tbsnews.net/economy/govt-shut-six-e-commerce-websites-over-mlm-operations-467118