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
Copyright © 2007 Singapore Press Holdings. All rights
reserved.
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