KUCHING: A direct selling company, Fingo (M) Sdn Bhd, is being investigated over its e-commerce platform and business models.
Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) in a press statement yesterday said that the China-based company has not been issued a licence to sell products online.
KPDNHEP Deputy Minister Chong Chieng Jen said Fingo was only issued a direct selling licence for five products by means of traditional method and not through e-commerce platforms.
“Among the products Fingo is allowed to sell through offline trading are An-Nur Agar Shampoo, Sucian Dara, Sniper, 9030 Mix Honey with Cordyceps and Lunis Bird Nest Ess Facial Mask”, he said.
“The ministry’s probe came after complaints by concerned citizens that Fingo was allegedly conducting aggressive pyramid scheme style business and recruitment, promising commissions for every recruitment or downline that members successfully recruited.
“Fingo is not allowed to market its products through online, unless permitted by the controller to do so. So far no permission has been granted,” said Chong at a press conference here yesterday.
Chong advised consumers not to fall for business schemes that are “too good to be true”, offering high returns with minimal effort.
“The way Fingo operates, seemingly by awarding members with commissions every time they recruit a member, this pyramid-scheme style business seems to look like some kind of a Ponzi scheme.
“We are not accusing Fingo of any wrongdoing yet. The ministry is now carrying out an investigation based on complaints by consumers,” he pointed out.
Fingo’s e-commerce platform and business models in Malaysia was launched on July 31 in Kuala Lumpur. It operates in Mandarin, English and Bahasa Malaysia, and is said to have over 200,000 registered active shoppers in the country to date.
It sells a wide variety of health care products including cosmetics, households’ items, personal care and daily living products.
