Oct 27, 2007
Sunshine Empire not a member of DSAS
WE REFER to the article, 'Multi-level marketing firm placed on MAS alert list' (ST, Oct 24).Pyramid schemes, illegal in Singapore, usually have one or more of the following characteristics: (1) commonly make nearly all the profits from recruiting or signing up new distributors either directly or indirectly, (2) do not provide any buy-back guarantee and (3) generally are not concerned with sales of products to end-users.
Hence, it is no surprise that no matter how lucrative something might sound, the schemes will eventually collapse - and participants get hurt financially. Comparing a company's marketing plan against these three red flags will be helpful in preventing oneself from falling victim to get-rich-quick schemes.
On the other hand, multi-level marketing (MLM) is a marketing channel, just as retail is a marketing channel. Anyone who meets the basic requirements to set up a company in Singapore is free to choose retail or MLM principles as a marketing channel.
It is conceivable that some companies masquerade as legitimate MLM companies when they are actually operating illegal pyramid schemes. It is a commercial crime to operate pyramid schemes in Singapore. We encourage the public to report suspicious schemes to the Commercial Affairs Department (CAD) and the Consumers Association of Singapore (Case). Please refer to the FAQ section of our website www.dsas.org.sg for details.
The Direct Selling Association of Singapore (DSAS), set up in 1976 to promote the bona fide direct selling industry, is a non-government, not-for-profit organisation. Before any direct-selling company is admitted as a member, its marketing plan must have been vetted by a panel of lawyers for adherence to the various local Acts, the terms and conditions approved by the Membership Review Committee and final approval granted by the Executive Committee. Member companies take pride in having passed the stringent selection criteria, and that the association requires member companies to uphold its Code of Ethics and Conduct rigorously. The public can view DSAS membership as a good assurance of legal and ethical business practices of its member companies.
Sunshine Empire is not a member of DSAS. The DSAS is not the authority with vested powers to deny an operating licence to companies, shut down companies or punish office bearers of companies that flout Singapore laws. Complaints about non-member companies which we have no jurisdiction over are relayed to the authorities, namely Case and CAD.
Nicholas Chia
Chairman, DSAS
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