RO5,000 fine for pyramid schemes: MoCIIP

RO5,000 fine for pyramid schemes: MoCIIP

RO5,000 fine for pyramid schemes: MoCIIP

24 Aug 2022

By OUR CORRESPONDENT

Muscat – The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) has warned people against selling, advertising or promoting goods, products and services through network marketing activities. Violators are liable for a fine of up to RO5,000.

Based on the Commerce Law promulgated by Royal Decree No 55/90, MoCIIP has banned network marketing – popularly known as pyramid schemes.

Article 1 defines network or hierarchical marketing as any method used by suppliers, advertisers or promoters to invite consumers to enlist other consumers to purchase a commodity or to get service in exchange of a benefit to be obtained by the first consumer. This is done while placing all the targeted consumers in a hierarchical or network group, with the aim of collecting money from the largest number of subscribers of the network group.

Article 2 prohibits buying, selling, trading, advertising or promoting any good or service through pyramid schemes via any electronic or non-electronic means.

Article 3 stipulates an administrative fine of RO5,000 on anyone who violates the provisions of this decision, which can be doubled in case of repeat of the violation.

According to MoCIIP, the decision aims at preventing this type of trade. Network