Sunshine-Empire at Straitstimes Singapore
Wednesday, October 24, 2007
The concern is that its business model works like a pure financial investment scheme
By Lorna Tan
THE authorities in Singapore and Malaysia have put out an alert on a firm operating in several Asian countries including Singapore.
The Straits Times understands that the Commercial Affairs Department is investigating the firm's practices.
Based at Toa Payoh HDB Hub, home-grown Sunshine Empire, a multi-level marketing (MLM) firm, has attracted 20,000 people here since it was set up last July.
MLM firms, which are legal here, typically invite people to pay cash for the right to market goods to other people. They also get cash for recruiting other MLM marketers.
Under Sunshine's scheme, people usually put down $12,000 to become a 'merchant', as it calls users of its online shopping platform offering thousands of goods, including health supplements, lingerie and electronics goods.
After signing up, they can buy Sunshine's online goods.
But they are also rewarded with potentially hefty cash rebates, though these are not guaranteed. Merchants can build their own sales force as well.
The scheme is structured in such a way that participants are not required to use the rebates to buy Sunshine's goods.
The cash rebates are based on Sunshine's global turnover. The option of converting the rebates into cash only makes Sunshine more attractive than other MLM firms where people must maintain sales quotas.
But this is understood to be the nub of the concerns held by the authorities over Sunshine's business practices.
The fact that its 'merchants' can notch up what seem like profits without ever buying or selling products means its business model looks like a pure financial investment scheme.
Sunshine was placed on the Monetary Authority of Singapore's (MAS) investor alert list last month and that of Malaysia's Securities Commission a few months ago.
The regularly updated MAS list warns people of companies which may be offering products regulated by MAS without authority.
Read the full story in Wednesday's edition of The Straits Times.
Note : This news is absolutely neutral opinion. Don't be affraid. :). You can learn, take positive side and quick understanding if Sunshine-Empire is not Investment Company but Marketing Company.
Source : http://www.straitstimes.com/Latest%2BNews/Singapore/STIStory_169845.html?vgnmr=1
By Lorna Tan
THE authorities in Singapore and Malaysia have put out an alert on a firm operating in several Asian countries including Singapore.
The Straits Times understands that the Commercial Affairs Department is investigating the firm's practices.
Based at Toa Payoh HDB Hub, home-grown Sunshine Empire, a multi-level marketing (MLM) firm, has attracted 20,000 people here since it was set up last July.
MLM firms, which are legal here, typically invite people to pay cash for the right to market goods to other people. They also get cash for recruiting other MLM marketers.
Under Sunshine's scheme, people usually put down $12,000 to become a 'merchant', as it calls users of its online shopping platform offering thousands of goods, including health supplements, lingerie and electronics goods.
After signing up, they can buy Sunshine's online goods.
But they are also rewarded with potentially hefty cash rebates, though these are not guaranteed. Merchants can build their own sales force as well.
The scheme is structured in such a way that participants are not required to use the rebates to buy Sunshine's goods.
The cash rebates are based on Sunshine's global turnover. The option of converting the rebates into cash only makes Sunshine more attractive than other MLM firms where people must maintain sales quotas.
But this is understood to be the nub of the concerns held by the authorities over Sunshine's business practices.
The fact that its 'merchants' can notch up what seem like profits without ever buying or selling products means its business model looks like a pure financial investment scheme.
Sunshine was placed on the Monetary Authority of Singapore's (MAS) investor alert list last month and that of Malaysia's Securities Commission a few months ago.
The regularly updated MAS list warns people of companies which may be offering products regulated by MAS without authority.
Read the full story in Wednesday's edition of The Straits Times.
Note : This news is absolutely neutral opinion. Don't be affraid. :). You can learn, take positive side and quick understanding if Sunshine-Empire is not Investment Company but Marketing Company.
Source : http://www.straitstimes.com/Latest%2BNews/Singapore/STIStory_169845.html?vgnmr=1
