Network, pyramid marketing banned in Oman

Muscat: A fine of OMR 5,000 will be imposed on anyone who sells, buys, trades, advertises or promotes any commodity, product or service through network or pyramid marketing.

The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) issued a ministerial decision regarding the prohibition of selling, buying, trading, advertising or promoting goods, products and services through network or pyramid marketing.

The decision came as follows:

The second article stipulates that it is prohibited to sell, buy, trade, advertise or promote any commodity, product or service through network or pyramid marketing by any electronic or non-electronic means.

The third article says that an administrative fine of OMR 5,000 shall be imposed on anyone who violates this decision, the fine shall be doubled if violation is repeated.

 Network or hierarchical marketing means any method used by the provider, advertiser, or promoter to invite the consumer to choose a list of other consumers with the intention of buying a commodity or receiving a service in exchange for a benefit obtained by the first consumer and placing them all in a hierarchical or network group with the intention of collecting money from the largest number of subscribers in the network or pyramid.