mlm member can be a consumer?
vikas patole
(Querist) 14 June 2012
This query is : Resolved
In india there are lots of multi-level marketing companies and they gives more allurements to their agents/chain members and pushes burden on agents/chain members to buy for own use and also sell policies or products in open market.innocent peoples who wants to be a rich fast comes in contact with such agents/chain members and buys such policies or products and also becomes the part of their chain to act as a agent/chain members like introducer to new one. but in real, that allurements not fulfilled by such MLM companies and reasoned in such a way "it has been postponed" or policy changed,etc. and lastly these innocent people faces a fraud by company. so my question is,
1)can such agents/chain members falls uder defination of "Consumer" by Consumer Protection Act,1986. and
2) can he complaint against such company for fraudulent commitments.
Devajyoti Barman
(Expert) 14 June 2012
1. The agents are not consumers though the end buyers are so.
2. Apart from Consumer cases criminal case of fraud, cheating can also be filed.
The company may be sued for winding up as well.
Guest
(Expert) 14 June 2012
Agree with Shri Devajyoti Barman.
PARDEEP KUMAR
(Expert) 15 June 2012
Mr. Patole,
Your query is not clear, if you are talking about incentives promised by the MLM company for buying/selling policy, no doubt, it amounts to criminal breach of trust under IPC,1860, apart from criminal cases, civil cases can be filed to seek redressal from Court of law.
However, if you have purchased a policy for yourself as end user and upon learning that such MLM is cheating people and you have stopped sale of policies, yes, you can file consumer complaint.
Guest
(Expert) 15 June 2012
Mr. Vikas,
In fact there are two aspects of the MLM schemes:
1) Where the MLM agent is the user of the products/ srvices of the MLM company for his personal use and he finds the products and services defective, he is the consumer in terms of the Consumer Protection Act.
2) Where he is acting as an MLM member/ agent, he becomes the part of the system of the MLM company for other consumers enroled through him. In that case he is also liable to be framed in addition to the the MLM company by his enroled members for deficiency in the ensured products and services.
In most cases, MLM company's business is based on unfair & unethical practices.
Guest
(Expert) 15 June 2012
You are welcome, Vikas.
