Reforming Regulation of Multi-level Marketing in Myanmar

Abstract

The business of multi-level marketing is prohibited in Myanmar under the Notification no 46/2018. There are not only three paragraphs but also lack of the definition of MLM in this Notification. If distributors sell any product through MLM in Myanmar, they will be punished with imprisonment for a term exceeding three years under section 5 of the Myanmar Essential Goods and Services Law 2012. The study of the provisions on the business of MLM in selected ASEAN countries, Indonesia, Malaysia, Thailand, and Singapore indicates that the definition of multi-level marketing and pyramid scheme is not the same.

Moreover, businessman and consumer have unavoidable problems as follow; firstly, Myanmar MLM measure is difficult to understand because it is not clear. Secondly, MLM business does not have a chance to compete with normal business, thirdly, this situation cannot create to be more choice and better price for the consumer.

This thesis put forward new regulation of MLM in order to good balance between consumer rights and fair market. This thesis also studies the essential elements on a MLM regulation of selected ASEAN countries.