Tilsyn av Direktesalgs og nettverksbransjen
Steinar Husby Jamtveien 11 7605 Levanger Email:steinar.husby@gmail.com Tlf. 92 03 02 49 Facebook: https://www.facebook.com/steinarhusby1
Supervision of Direct Selling and the Networking Marketing industry should be handled by the Department of Trade & Industry!
Open letter to the Culture Minister Thorhild Widvey and Trade and Industry Minister Monica Mæland.
What does the direct selling company Tupperware and Norwegian state-owned lottery company Norsk Tipping have in common?
Apart from large turnovers they are both under the supervision of the Norwegian Gaming Authorities.
Regarding Norwegian Lottery company Norsk Tipping this is logical. They are a gaming company. It is however difficult to see that Tupperware, which sell plastic articles using home parties, should be supervised by people who have their expertise in gaming and lotteries. That is the reality today. Tupperware, along with hundreds of other companies, have a sales structure that looks like a pyramid.
As games and lotteries in Norway are a part of the extended culture concept, and the direct sales and networking industry have a so-called "pyramid-like" organization, that puts many large companies under the umbrella of the Culture Department and the Gaming Authorities, when they really should be supervised by the Department of Trade and Commerce. As a network marketer it is strange to say that it is the Minister of Culture who is "my minister" and not the Minister of Trade and Industry.
In 1998 the Swedish nutrition company Nature's Own was labeled a pyramid scheme in most Norwegian newspapers. The news stated that 15,000 Norwegians risked going to jail for participating in an illegal pyramid and the comments from the Ministry of Justice received considerable public attention. The case was later dismissed and in 1999 the Parliamentary Ombudsman for Public Administration criticized the way the Justice Department had handled the proceedings.
After the case with Natures Own there was a need for a more modern law. In 2005 Norway adopted the same rules as the EU. The directive from the EU was partly created out of a desire to give the direct sales and networking industry more predictability.
This has subsequently proved to generate substantial room for interpretation of the practice of §16 which is currently worded 2:
§ 16.Pyramide games and pyramid-like revenue systems.
It is forbidden to create, operate, participate in or disseminate pyramid schemes or similar systems. This includes any system where the compensation for getting the opportunity to earn an income is solely based on recruiting others to the pyramid scheme etc.
In other countries, including Malaysia, a network marketing company must have a license to start their business. In Norway, however, anyone is free to start operation, and one assumes that those who do abide with Norwegian laws. There are many advantages to this, but the challenge to those who would like to establish such a business in Norway is unpredictability, both for the customers and the independent sales representatives. After having been operational for a long time, with many people working hard and depending on the income generated, the whole business may suddenly be stopped. Since the capacity of the Gaming Authorities is low, the decision about which companies to actively investigate, are often based on tips from the public. Such tips are frequently sent by other participants in the marketplace with the intention to damage a «competitor». Something that of course happens in other industries as well.
However the way the Gaming Authorities is doing their supervision puts a big burden on both customers and distributors. Instead of doing a proactive supervision, where they provide advice and guidance to the industry, the companies are put in a position where they are the victim of a "reverse burden of proof." They must prove that they are NOT a pyramid scam, based on § 16 of the Lottery Act. This has to be proved to the case workers, who certainly are skilled when it comes to gaming and bingo, but not necessarily so when it comes to the supervision of large commercial businesses.
So dear Government; We in this industry request that direct sales and network marketing should be considered as a serious industry, and thus supervised by the Ministry of Trade and Industry
We hope that this government, which stand for efficient and goal-oriented casework, move the direct sales- and networking industry where it belongs. And that is to the Ministry of Trade and Industry.
We who are working in direct sales and network marketing in Norway want a professional council, organized by the Ministry of Trade and Industry, that can be proactive with regards to direct selling and network marketing. And do supervision that is based on principles of trade and commerce, not games and lotteries..
We hereby ask the Minister of Trade and Industry for feedback regarding our suggestions.
Steinar Husby
On behalf of over 100,000 direct sales and network marketers in Norway ... And many more customers.
Steinar Husby Jamtveien 11 7605 Levanger Email:steinar.husby@gmail.com Tlf. 92 03 02 49 Facebook: https://www.facebook.com/steinarhusby1
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