Investors have warned of AI’s tiered marketing programs
Snowai multilevel marketing program website. Photo from VnExpress.
Multi-level marketing (MLM) programs calling for investing in artificial intelligence (AI) robots believed to be able to make money on their own are illegal, authorities have warned.
Vietnamese Competition and Consumer Authority under the Ministry of Industry and Commerce has placed certain AI bot related websites and MLM applications on a warning list, including snowai (snowaiapp.com, snowai.cc, snowai.net) and inb.network ( ai.marketing and aimarketing).
The websites claim that AI bots will conduct internet affiliate marketing to advertise brands or transact on virtual and digital currency trading rooms.
Depending on the investment packages involving the rental of AI robots, investors can enjoy different types of commissions when orders are placed for branded products or virtual currency transactions are made. Income includes commissions from investments made by subsequent investors in the tiered marketing program.
If investors put money into such programs, they run the risk of losing money because they have to hand over real money, but their winnings are virtual or digital money which is not officially recognized.
The competition authority has warned people not to invest in or develop tiered marketing programs related to AI bots in order to avoid financial and legal losses.
Doing business using the unlicensed tiered marketing mode can result in sentences of up to 5 years in prison under Vietnamese laws, the authority said.