Multilevel marketing (MLM) vs pyramid scheme - from legal perspective by A. Rahman, Aspalella, Nik Mat, Nik Kamariah

“…Multilevel marketing is a popular marketing method often practiced by direct selling companies.However, it has been manipulated in the form of the illegal pyramid scheme or commonly known as the get-rich-quick scheme, This paper intends to discuss the differences between MLM and pyramid schemes, the regulations on MLM and anti-pyramid laws in other countries, and the loopholes of the existing Direct Sales Act 1993 in Malaysia especially regarding provisions on MLM technical operations.It was suggested that amendments or provisions should be made on the MLM operations particularly provisions concerning start-up fees, inventory loading and a balanced compensation system.Additionally, consumer education and awareness as well as stringent enforcement should also be enforced.…”
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Intervening effect of attitude on the relationship between selected determinants and corporate image by Rattanaphan, Prasit, Nik Mat, Nik Kamariah

“…Despite the profitable revenue reported by direct selling industry, the corporate image of these companies has been negative and deteriorating.This is partly attributable to the increasing number of pyramid schemes and frauds which had led to the negative attitude of the consumer towards direct selling, and tarnished the image of the direct selling company in recent years.Hence, the main objective of this study is to examine the intervening effect of attitude in the relationship between the selected determinants and corporate image of direct selling companies in Thailand.A total of 900 questionnaires was distributed to direct selling customers, and 612 were collected back, representing a response rate of 68%. …”
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