Left an mlm but concerned whether I m disintegrated properly or not Left an mlm but concerned whether I m disintegrated properly or not

4 months ago

Sir I joined a mlm without knowing what it was all about,I was asked to pay 3000 as a joining fee or so,as I was a customer and a further seller also simultaneously,as their common way, I was provided an independent associate I'd,i never paid the full price except an initial 1k price as an advance,I left after I came to know I need to call in people under me,I never made anyone join, I never bought anything,I did nothing i left in a very short span of time,I was provided a card with an id of my independent associate, i have no mails and messages from them, since I left,also I don't have any welcome mail or so, i just received a small physical card stating my id of independent associate of the,mlm,i left by just saying on call i will not come further, without any formal or written resignation,they haven't contacted me since in any way,I'm concerned that I'm a government job aspirant,so this id if it was ever activated,or if I was a part of the mlm,will hamper me getting any kind of government job,bigger or smaller doesn't,matter from 4th grade state services to ias/IPS, just in case ,I think the Id is deactivated because this was 2 years since I left,so the I'd or deactivated Id won't cause me any problem under any law or so?,even in extreme cases if the id is active ,that won't cause me any problem right?I don't think the I'd is active since it's been 2 year,and they haven't contacted me,no mails,no messages,I even think I never got into the company since i never paid the full price ,but the physical id card is giving me problems,guide me on this,I never resigned formally or through a letter,I just told them i won't go from next day on a phone call,and they didn't say anything i haven't been contacted since 2 years,it was way 2 years back, please resolve my query,this won't create a problem right? I was given id of an independent associate,the dual employee thing won't come here right?I left it 2 years ago,and is not indulged anyway,the id must have been deactivated,still tell me sir on extreme cases,I need assurances

Legal Counsel Vidhikarya

Responded 4 months ago

View All Answers
A.Dear Client,
MULTI LEVEL MARKETING(MLM) is a sales structure where members of a company are encouraged to recruit new members. Once recruited, this salesperson receives a cut of their recruiter's sales. At the same time, each salesperson profits from the sale of a given product. Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial marketing strategy for the sale of products or services. Network marketing is legal unless it qualifies as a Ponzi scheme or an unlicensed pyramid scheme business in India. It is lawful to join a pyramid scheme through a network as long as you are not asked to pay a fee to do so. While MLMs are legal, participating in a pyramid scheme is a crime. Making sure you are joining a legitimate business and not a scam is the best way to protect your future. One of the main reasons MLM companies are banned in India is their pyramid scheme structure. In a pyramid scheme, the emphasis is on recruitment rather than the actual sale of products or services. Multi-level marketing is a legal strategy used by some direct sales businesses. Individuals representing a company as a ‘sales rep’ are not technically classed as employees, and therefore do not receive a salary. Instead, they earn a commission for each product they sell. Therefore, the seller only makes a return on their investment when they make sales. Representatives can also make money from referring or recruiting other individuals to their network. Like many things in life, preparation and research can help prevent mistakes and misjudgments. Diving into an MLM without doing any research can be disastrous too. If you are unsure of the legitimacy of a company or scheme, the safest option is to turn them down. It’s not worth risking your hard-earned money on an offer that seems too good to be true. Although MLM is a legal business strategy, scams and illegal pyramid schemes are commonplace. Because of this, it’s important to stay wary of MLMs and questionable companies who push products through sales representatives. It’s always better to decline than be sucked into a scheme that is likely to lose you money and cause more problems for you.
Helpful
Helpful
Share

Post Your Matter Post Your Matter

Talk to a Lawyer Talk to a Lawyer

Ask a question Ask a question

Vidhi Samaadhaan Vidhi Samaadhaan

Read Related Answers

question iconSalary deduction for not serving notice period
Dear Client, It is very tricky situation when there is no formal agreement signed between employer and employee but it becomes an implied oral contract,if want to be taken then send a legal notice t...
question iconLess Full and final settlement
Dear Sir Please approach the following authority or similar authority in a state The Office Commissioner of Labour Karmika Bhavan, Dairy Circle, Bannerghatta Road, Bangalore-29. 080-29753078 labou...
question iconAlready Served 10 Days Out Of 15 Days Notice Period, But Have Still Not Got LWD.
Dear Client, Please go through the terms and conditions of your employer employee contract once again and understand whether your release letter depends on the service company. if it does not then y...
question iconRegarding obc NCL reservation
Dear Client, There is a general reservation of 10% for the children of BSF officers in the BSF itself, but other general reservation quota depends on the institution.
question iconContractual Employer deducting PF
Dear Client, the Industrial Disputes Act of 1947 defines layoff, it excludes employees in management or supervisory positions. The Act also states that an employee must be a 'workman' to be eligible...