The commerce ministry has issued a gazette notification on the Multi-level Marketing Activities (Control) Ordinance-2013, which went into effect on September 2. The draft act got cabinet nod on August 19 and was enforced as an ordinance since no parliamentary session was “immediately” forthcoming. It would be tabled as a bill in the parliament’s upcoming session.
With the new ordinance in force, the government will have no problem now to appoint administrator(s) for a MLM company if found guilty of fraud or in breach of customer rights, according to section 48 of the ordinance.
Importantly, the ordinance would pave the way for the government to appoint administrator(s) at the trouble-stricken Destiny Group, said an informed source at the commerce ministry.
Earlier, the government tried, unsuccessfully, to appoint administrators at the Group amending the company law but it met with stiff resistance from the business leaders.
“The new law will help the government control and monitor the activities of MLM companies and check irregularities,” Cabinet Secretary Mohammad Mosharraf Hossain Bhuiyan told journalists after the August 19 cabinet meeting.
