PUTRAJAYA: Direct selling is not necessarily illicit business, said Domestic Trade, Cooperatives and Consumerism Ministry senior director Datuk Ismail Ahmad.
Bent on changing the people's misconception towards direct selling, he said the ministry would organise a direct selling convention and exhibition on June 12.
"The public should attend the convention as it would give them better understanding and prevent them from being taken for a ride by unscrupulous quarters out to get fast bucks.
"From 2006 to February this year, more than 380 direct selling companies have been found guilty of flouting the rules under the Direct Sales Act 1993."
He said speakers from government agencies and representatives from licensed direct selling companies would help shed light on related matters during the convention.
The convention will be held at the Menara Parti Gerakan Malaysia (Menara PGRM) in Cheras.
From 2006 onwards, he said licensed direct selling companies had reported huge losses due to the public's negative response towards direct selling activities and products.
"In 2006, all the companies licensed under us generated up to RM8 billion worth of returns, but it dived to RM4 billion in 2008 due to weak response."
At present, there are more than 500 licensed direct selling companies, including Amway and
Kenshido International.Ismail, however, cautioned consumers to check first before investing in direct selling companies.
Individuals have to pay a fee of RM250 to attend the event.
The one-day event will begin at 8am and end at 10pm.
Source:
Direct sales convention on June 12 (NST)
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