The editorial “Criminal injustice” ( Business Line , June 5) assertively pointed out the fact that Amway’s MLM (multi-level marketing) mechanism is genuine.

The Ponzi factor is that the sales commission depends upon the number of agents appointed and not on the quantum of sales.

MLM companies market products for which there is genuine demand, and it is a legitimate form of marketing. What needs regulation are the details on commission and its structure.

If MLM is illegal what about insurance companies which market service with a network of agents?

Another good example of MLM is Peerless Insurance which did big accident insurance business through MLM.

N.R. Nagarajan

Sivakasi

Banking on gold

I welcome the decision of the RBI restricting gold imports on consignment basis and banning the sale of gold coins by banks. The sale of gold is unrelated to banking activities. Employees run after customers to meet their ambitious sales targets. Customers are forced to buy to maintain their relationship with bank employees. Given the poor security environment, it is not even safe to wear gold ornaments.

Another non-banking area banks take on is the sale of so-called third party products where a lot of mis-selling takes place. Banks will earn more by keeping their assets performing than by earning a few crores of commission by sale of gold and third party products. Let banks do banking.

L. Rangarajan

Chennai

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