THE WHAT? Amway has been ordered to suspend recruitment of new members in Japan for six months for violating the country’s commercial transaction law which prohibits direct sales firms from soliciting shoppers to buy products or join without telling them about the nature of the business, according to a report published by the Japan Times.
THE DETAILS The MLM has prompted some 953 shoppers to seek help from Japan’s Consumer Affairs Agency. The case that prompted the sales ban was the subject of a criminal investigation and a harassment charge.
THE WHY? The regulatory body charged the direct sales firm with targeting social media users and coercing them to buy cosmetics and sign up for membership without disclosing the name of the firm and its intent.