The Office of Consumer Protection (OCP), through an investigation, established that MagneSSa Bhutan and Orien’s Bhutan are operating a pyramid scheme business.
And as per the Consumer Protection Act of Bhutan 2012 and Consumer Protection Rules and Regulations 2015, such mode of business operation is prohibited and unfair trade practice.
According to a press release from the OCP, its investigation into the case ascertained that the business practices are engaged in the misleading representation of goods and services, misleading advertisement, deceptive practices, trade practices that lack professional diligence and material distortion of economic behaviours of the consumers.
As per the OCP, the scheme extorts members, exploits personal relationship, unfairly targets vulnerable groups of consumers and compels the members to endlessly recruit down-line members to earn promised rewards and commissions.
MagneSSa Bhutan and Orien’s Bhutan also misused their trade licenses which allowed them only retail business activities.
“After establishing that the mode of business operation is pyramid scheme operated by MagneSSa Bhutan and Orien’s Bhutan, we have formally notified the MagneSSa Bhutan and the Orien’s Bhutan to discontinue the operation of such kind of business schemes. With this, they will have to discontinue within the fourteen days as we have notified,” said Jigme Dorji, the Chief Programme Officer for Office of Consumer Protection, MoEA.
He added in case, if the two business entities fail to follow the notice, the office will cancel their business licenses and will impose fines and penalties as per the provisions of the Consumer Protection Act. The office, in the meantime, will carry out a study on the prevalence of other such schemes in the country.
“In collaboration with various government agencies and stakeholders such as the Department of Trade, Department of Drug Regulatory Authority, Regional Trade and Industries office, and Department of Revenue and Customs, RMA, we will constantly monitor and see such kind of business practices don’t take root,” he added.
At the same time, the OCP reminds the general public to refrain from engaging and promotion of such kind of unlawful business practices.
Pema Tshewang
