Many still ignorant about multi-level marketing

Ms Tan Sze Ying has proposed that multi-level marketing (MLM) be banned (Consider banning multi-level marketing; Nov 5).

Indeed, MLM activities in Singapore are already governed by the Multi-Level Marketing and Pyramid Selling (Prohibition) Act, which is administered by the Ministry of Trade and Industry.

With few exclusions - such as for insurance companies and master franchise and direct selling schemes, which must satisfy specific conditions - MLM activities (also known as pyramid schemes) are illegal and carry a heavy penalty for those who participate in them.

Unfortunately, it would appear that many members of the public remain uninformed.

The young, the unemployed as well as retirees may be tempted to join such schemes in the hope of quick financial gain.

In the light of this, the relevant authorities, including the police, should continually educate the public on this issue.

For instance, advice could be disseminated to school leavers and graduates at job fairs and career talks.

This will help them avert personal financial loss as well as not to inadvertently run afoul of the law.

Daniel Ng Peng Keat (Dr)