KATHMANDU: The Foreign Trade Regulation Branch under the Department of Commerce, Supplies and Consumer Protection has urged people to be vigilant against networking businesses’ frauds.

In a notice issued on Friday, the department said that its serious attention has been drawn to the complaints and grievances of fraud by networking business in Nepal.

The notice signed by Director Shivaraj Sedhain said, “The Direct Sale of Goods (Management and Regulation) Act 2074 and Rules 2076 have made it clear that pyramid-based networked business cannot be carried out.”

According to the department, some Nepali companies and individuals, including foreigners, have been involved in illegal networking activities in the name of the direct sale of goods.

The department has also stated that it is continuing investigation against some such individuals and companies based on the complaint.

The existing laws state that a person involved in such illegal activities could be fined up to Rs 1 million or face imprisonment for up to five years or both.