Talking point: Chong (second left) highlighting the Zhang Jian controversy at a press conference. With him are (left to right) DSAM vice-president Sam Cheong, Ng and honorary secretary Tan Chong Guan.
KUALA LUMPUR: The Direct Selling Association of Malaysia (DSAM) has confirmed that it received several complaints against the company associated with controversial Chinese entrepreneur Zhang Jian.
According to DSAM president Frederick Ng, the complaints had been forwarded to the Domestic Trade, Cooperatives and Consumerism Ministry.
“The information in the company’s website seems to give the impression that it was operating a multi-level marketing scheme. However, the company is not a registered member of DSAM,” said Ng.
Founded in 1978, DSAM has 65 registered members who account for 45% of direct selling products in the country with annual sales amounting to some RM11bil.
Under the Direct Sales and Anti-Pyramid Schemes Act 1993, a person or company can face a maximum fine of RM10mil or five years jail if found guilty of promoting or conducting a pyramid scheme.
At the same press conference yesterday, MCA’s Public Services and Complaints Department head Datuk Seri Michael Chong urged people to conduct their own due diligence.
“It was reported that he (Zhang) is being investigated and on the radar of Chinese authorities,” said Chong, who also took to task certain quarters for using the Zhang controversy to tarnish MCA’s image by circulating photographs of Zhang taken together with some MCA leaders.
“This is unfair to MCA. A closer examination of the photograph showed that it was taken at a Chinese New Year open house celebration earlier this year.
“MCA has nothing to do with it (Zhang’s scheme) just because of (these) photographs.”