The Enagic machines or Kangen water filter business in the country is categorised as a pyramid scheme. This is according to the Office of the Consumer Protection (OCP). The office found that both online and offline modes of business of Enagic Alkaline Ionizer and Water Filtration machines are pyramid schemes.
Promoted as a machine that can turn normal water into water with many health benefits, people were enticed to become a member. The scheme then lures the buyers to recruit new members by promising compensation as and when they register new members. And to become a member, one must buy one of these expensive products that cost as high as five thousand dollars.
“The pyramid schemes are always unsustainable as it is dependent on the recruitment of downline members. As such, it is going to ultimately collapse in the end and when that happens it is the lower rung members, who constitute the largest group that will be affected and there will be no economic returns for their investments,” said Jigme Dorji, the Chief Program Officer at the OCP under the Ministry of Economic Affairs.
He also said advertising products claiming health benefits without registering or approval from the Drug Regulatory Authority is illegal.
As per the OCP, there are about 150 Bhutanese engaged in the scheme online. Several of them are found operating from abroad.
A notification from the OCP yesterday directed promoters or distributors, whether online or offline to immediately stop such practices.
“If we still find that they are continuing with such kind of business, firstly it will lead to an imposing of penalty which is based on the value of the goods involved. If they have a business license, it will lead to cancellation of their licenses and if they continue even after this, it will lead to prosecution,” he added.
However, he said importing and retailing or online sale of Enagic products with a valid trade license is allowed. But the business will be deemed a pyramid scheme if they start recruiting members and downline members with false promises. According to the OCP, there are currently about 15 license holders in the country dealing with the sale of Kangen water.
Kinley Dem
Edited by Sonam
