Malaysia Direct Selling Act and Anti-Pyramid Scheme Act 1993 (AJLSAP)

According to the Malaysia Direct Selling Act and Anti-Pyramid Scheme Act 1993 (AJLSAP) on 1st March 2011. The Company is committed with MDDA and KPDNKK against the Pyramid business in MLM industry.

Features of pyramid scheme:

1. Promoting a scheme or bonus payments or other benefits solely or principally recruitment or introduction of participants in the scheme, plan, operation or pyramid chain process rather than the sale of products, services or intangible property by the participant.

2. Bonus paid to the participant or any other benefits received by participants solely or primarily through the recruitment or the introduction of other people into the scheme, plan, operation or pyramid chain process rather than the sale of products, services or intangible property by the participant or others.

3. A written contract or statement of the material terms of the agreement is not available to participants in the scheme, plan, operation or pyramid chain process.

4. Purchasing of Product, services or intangible property or a minimum payment or sales performance to meet the participation or bonus payments or other benefits requirement in the scheme, plan, and operation or pyramid chain process.

5. Participants are required to purchase products, services or intangible property in an unreasonable amount that not exceeding expectations for resale or purchased within a period of time. Participants are not given full option nor desire but to pressure in buying a package that meet sales requirements to qualify them for the position or bonus in scheme, plan, operation or pyramid chain process.

6. The refund policy of goods, services or intangible property purchased for the participant is not available.

7. Repurchase policy by operators, plan, operation or pyramid chain process for products, services or intangible property that can be marketed at this time at the request of participants in reasonable terms or agreements not authorized or provided.

8. A strict or unreasonable scheme, plan, operation or pyramid chain process for participants to get bonuses or other benefits.

9. Withdrawal process by the participants of the scheme, plan, operation or pyramid chain process is not allowed.

10. Participants are allowed or encouraged to buy more than one position or benefit to participate in the scheme, operation or dynamic chain process.

Resources: 18369 , updated on 03 August 2012
http://www.kpdnkk.gov.my/kpdnkk/pengguna/skim-piramid