Gyeonggi Province Special Judicial Police Cracking Down on Illegal Multi-Level Sales Targeting Elderly and Job Seekers

[Suwon Ilbo=Reporter Park No-hun] The Gyeonggi Province Special Judicial Police unit announced that it will intensively investigate illegal multi-level sales operations targeting elderly people seeking stable pension income and job seekers looking for employment, and urged the public to report such activities.

According to Gyeonggi Province on the 18th, the province plans to investigate the following based on related reports within the year: ▲sales of health functional foods, cosmetics, and medical devices using pseudo-multi-level sales organizations without registering with the Fair Trade Commission or relevant city/province ▲recruitment of multi-level salespeople by using false pretexts such as job placement, side businesses, briefings, and training sessions without clearly disclosing the actual purpose of recruiting salespeople ▲transactions that are disguised as goods trading but involve only money transfers ▲fraudulent and exaggerated advertising used in recruiting salespeople and unfair trade contracts.

Illegal multi-level sales companies introduce business plans with no real substance and lure elderly people by claiming stable pension income and investment opportunities that can be inherited by descendants, or target job seekers and housewives engaged in job search activities by accepting application forms, notifying them of employment approval through interviews, and then enrolling them as multi-level salespeople, using various methods to victimize people.

In particular, given the prolonged COVID-19 pandemic this year, self-employed people with reduced income, elderly people seeking stable income in their later years, and job seekers engaged in prolonged job searches can be exposed to illegal multi-level sales companies that exploit psychological desperation. Therefore, the Gyeonggi Province Special Judicial Police unit plans to conduct intensive investigations.

According to the 'Door-to-Door Sales Act,' establishing, managing, operating an unregistered multi-level sales organization, or forming a multi-level sales organization for money transactions without goods trading is subject to a maximum of seven years imprisonment or a fine of up to 200 million won.

Reports on multi-level sales operations by unregistered multi-level sales companies, product sales targeting elderly people using investment as bait, and recruitment of multi-level salespeople under the guise of job or side business placement can be submitted through 'KakaoTalk Plus Friend Gyeonggi Province Special Judicial Police,' the Gyeonggi Province Special Judicial Police website (gg.go.kr/gg_special_cop), or by calling the Gyeonggi Province Call Center (031-120).

Kim Young-soo, head of the Gyeonggi Province Special Judicial Police unit, stated, "Illegal multi-level sales operations cause not only financial damage but also great psychological suffering. In particular, we will actively detect malicious illegal activities that victimize elderly people and job seekers," and urged, "We ask for your active interest and reports from residents of the province."

Meanwhile, the Gyeonggi Province Special Judicial Police unit investigated illegal multi-level sales disguised as door-to-door sales, unregistered multi-level sales of study materials, and illegal multi-level cryptocurrency sales last year and identified a total of 34 people.