The Department of Trade and Industry (DTI) is considering regulating direct selling companies by allowing to operate only those with accreditation from the agency.
DTI Secretary Ramon Lopez said this is a proactive approach of the agency to avoid another pyramiding scam to happen.
Lopez noted that direct selling is a legitimate activity, however, there are companies that are earning through the number of recruits, and not through the products they are selling.
“We want to have accreditation,” the DTI chief said.
He stressed that direct selling companies should earn through selling products, and not by recruiting sellers and requiring them to pay high membership fee like what other networking and pyramiding companies are doing.
Lopez said DTI will be discussing this initiative with companies engaged in direct selling business.