By Nigel Edgar
KUCHING, Aug 10: Direct selling company, Fingo (M) Sdn Bhd, is currently under investigation over its e-commerce platform and business models.
According to the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP), the China-based company has not been issued a licence to sell products online.
KPDNHEP deputy minister Chong Chieng Jen said Fingo was only issued a direct selling licence for five products by means of traditional method and not through e-commerce platforms.
He added that the products Fingo is allowed to sell through offline trading are An-Nur Agar Shampoo, Sucian Dara, Sniper, 9030 Mix Honey with Cordyceps and Lunis Bird Nest Ess Facial Mask.
Chong added that the ministry’s probe came after complaints by concerned citizens that Fingo was allegedly conducting aggressive pyramid scheme style business and recruitment, promising commissions for every recruitment or downline that members successfully recruited.
“Under the term and condition of direct selling licence under the Direct Sales and Anti Pyramid Scheme Act 1993, Fingo is not allowed to market its products through online, unless permitted by the controller to do so.
“So far no permission has been granted,” Chong told a press conference here today.
Fingo’s e-commerce platform and business models in Malaysia was launched on July 31 in Kuala Lumpur. It operates in Mandarin, English and Bahasa Malaysia, and was said to have over 200,000 registered active shoppers in the country to date.
It sells a wide variety of care products including cosmetics, household items, personal care and daily living products.
Chong meanwhile, advised consumers not to fall for business schemes that are “too good to be true”, offering high returns with minimal effort.
“The way Fingo operates, seemingly by awarding members with commissions every time they recruit a member, this pyramid-scheme style business seems to look like some kind of a Ponzi scheme.
“We are not accusing Fingo of any wrongdoing yet. The ministry is now carrying an investigation over the alleged complaints by consumers,” he said.
The Stampin MP added: “As a rule of thumb, my advice is that any multi-level marketing (MLM) scheme or direct selling scheme promising high returns for minimal work, or high returns on mere recruitment of members, that is probably a scam or pyramid scheme, which is against the law.
“Do not fall for the greed of easy money. Your gain or quick money will be some other person’s loss.” — DayakDaily