Stop Multi Level Marketing (MLM) Scams in Nepal

The Issue

Many so called business opportunities currently operating in Nepal are actually pyramid schemes, but they are cleverly hidden. These companies never openly say that they are running a pyramid scheme. Instead, they present themselves as direct selling platforms, network marketing companies, or entrepreneurship programs.

They claim that everyone who joins is an entrepreneur and a business owner. In reality, there is no real product value, no genuine customer demand, and no sustainable business model. The main source of income is not selling products to real customers but recruiting new people into the system.

New members are told that recruitment is optional, but indirectly they are pressured to bring others if they want to earn. Trainings, meetings, and motivational sessions repeatedly focus on building a team rather than building a real business. Income examples always highlight people who joined early, while the losses of the majority are never discussed.

These companies use emotional manipulation. They target unemployed youth and students by saying that jobs are slavery and that traditional education is useless. Young people are made to feel that this is their only chance to become successful. Many are convinced to invest money they cannot afford to lose.

Because the pyramid structure is hidden under the name of direct selling, it becomes difficult for ordinary people to understand the risk. When the flow of new members slows down, the entire system collapses. At that point, most participants lose their money, time, and trust, while the top promoters walk away without consequences.

This type of indirect pyramid scheme is dangerous because it creates an illusion of entrepreneurship while exploiting people financially and emotionally. It damages the future of Nepal’s youth and spreads false hope instead of real opportunity.

This petition demands strict investigation of companies operating under the disguise of direct selling and entrepreneurship. Authorities must clearly differentiate between genuine direct selling and illegal pyramid schemes and take strong action to protect citizens from hidden financial fraud.

avatar of the starter
Rojik BajgaiPetition StarterDreamer.

2

The Issue

Many so called business opportunities currently operating in Nepal are actually pyramid schemes, but they are cleverly hidden. These companies never openly say that they are running a pyramid scheme. Instead, they present themselves as direct selling platforms, network marketing companies, or entrepreneurship programs.

They claim that everyone who joins is an entrepreneur and a business owner. In reality, there is no real product value, no genuine customer demand, and no sustainable business model. The main source of income is not selling products to real customers but recruiting new people into the system.

New members are told that recruitment is optional, but indirectly they are pressured to bring others if they want to earn. Trainings, meetings, and motivational sessions repeatedly focus on building a team rather than building a real business. Income examples always highlight people who joined early, while the losses of the majority are never discussed.

These companies use emotional manipulation. They target unemployed youth and students by saying that jobs are slavery and that traditional education is useless. Young people are made to feel that this is their only chance to become successful. Many are convinced to invest money they cannot afford to lose.

Because the pyramid structure is hidden under the name of direct selling, it becomes difficult for ordinary people to understand the risk. When the flow of new members slows down, the entire system collapses. At that point, most participants lose their money, time, and trust, while the top promoters walk away without consequences.

This type of indirect pyramid scheme is dangerous because it creates an illusion of entrepreneurship while exploiting people financially and emotionally. It damages the future of Nepal’s youth and spreads false hope instead of real opportunity.

This petition demands strict investigation of companies operating under the disguise of direct selling and entrepreneurship. Authorities must clearly differentiate between genuine direct selling and illegal pyramid schemes and take strong action to protect citizens from hidden financial fraud.

avatar of the starter
Rojik BajgaiPetition StarterDreamer.

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Petition created on 22 December 2025