A total of eight multi-level marketing (MLM) companies are doing business in the country without licence using a court stay order on a government decision, official sources said.
According to commerce ministry, as the companies do not have licences for the business, their operation is illegal.
The MLM companies include Tianshi Bangladesh Co. Ltd, Forever Living Product Bangladesh Ltd, Daishan Bangladesh Private Ltd, Dream Together Private Ltd, Pinacol Sourcing Ltd, Mac-name International Ltd and Life-way Private Ltd.
Ministry officials alleged there was no monitoring and controlling over the eight MLM companies by the Office of the Registrar of the Joint Stock Companies and Firms (RJSC).
“They (the MLM firms) are carrying out operation without any licence,” an official said, adding that the RJSC had rejected applications of 12 MLM companies for licence in September last year.
But the companies have defended themselves against such allegations saying the court stayed the order of the government.
“As the court has stayed the order, we are entitled to run our business until further development,” Md Main Uddin, Managing Director of Dream Together Ltd, told Dhaka Tribune.
He believes the court will extend the stay order after expiry of the present ruling.
Senior Commerce Secretary Hedayetullah Al Mamoon, however, said they were yet to receive the court’s stay order in regard to the business of MLM companies.
He deplored the operation of the firms without licence from the authorities.
According to law, every MLM company must obtain a licence before starting its business. If any person is found operating such business without a valid licence, he or she will be awarded a minimum of 5 years and maximum 10 years imprisonment and a penalty of Tk50 lakh.
