Direct Sales Firm Accused of Scamming Resellers
The Thai Direct Selling Association addressed complaints against a direct sales firm accused of scamming resellers, leading to financial damages of approximately thirty-one million baht. Resellers allegedly took loans or sold assets to meet the sales quota, with some facing bankruptcy. TDSA emphasized the need for direct sales companies to comply with consumer protection regulations, maintain confidence, and adapt to global economic challenges.
The Thai Direct Selling Association (TDSA) addressed complaints against a direct sales firm accused of scamming resellers, leading to financial damages of about 31 million baht.
Resellers reportedly took loans or sold assets to meet sales quotas, with some facing bankruptcy.
Joining the company's sales required training fees and opening a credit line at different levels: 2,500 baht for normal, 25,000 baht for super, and 250,000 baht for dealer levels.
The TDSA emphasized the need for direct sales companies to register with the Office of the Consumer Protection Board and maintain consumer and distributor confidence.
Companies should set reasonable registration fees, offer clear business plans, allow returns, and avoid false advertising.
TDSA president Tossaporn Nisthanon advocated for collaboration between sectors to raise awareness and suggested firms adapt to global economic challenges.
Resellers reportedly took loans or sold assets to meet sales quotas, with some facing bankruptcy.
Joining the company's sales required training fees and opening a credit line at different levels: 2,500 baht for normal, 25,000 baht for super, and 250,000 baht for dealer levels.
The TDSA emphasized the need for direct sales companies to register with the Office of the Consumer Protection Board and maintain consumer and distributor confidence.
Companies should set reasonable registration fees, offer clear business plans, allow returns, and avoid false advertising.
TDSA president Tossaporn Nisthanon advocated for collaboration between sectors to raise awareness and suggested firms adapt to global economic challenges.
