Law for MLM business by August likely

The government is likely to formulate a law within August to bring the multi-level marketing (MLM) companies under the purview of legal system.

“The draft of the ‘Direct Sale Law 2011’ will be posted on commerce ministry’s website from today for collecting feedback from mass people” said a senior official of the commerce ministry.

He also informed that the draft law will remain in the website till July 8.

The decision was taken at inter-ministerial meeting at commerce ministry on Monday, presided over by Additional Secretary to the Commerce Ministry ATM Mortuza Reza.

The draft of the law will be sent to the cabinet within August for final approval, officials said.

As per draft law, the government would introduce a tough law to bar MLM companies from running the business of immovable property like land, building and office spaces.

There will also be a provision of freezing a company’s assets if it runs a business despite a government ban.

Besides, it also restricts the companies from being involved in businesses which are banned by the country’s consumer rights protection law.

The draft proposal contains 13 clauses and a total of 50 provisions along with two schedules.

Under the new law, the director general (DG) of Consumer Rights Protection Council will have the authority to control the local MLM companies.

For licence, new MLM companies will have to apply to the DG to get official approval to start business within 45 days.