‘Enagic’: A Rapidly growing Pyramid digital business scheme selling water ionizers in Bhutan shows dreams but empties out pockets - The Bhutanese (2022)

Nobody really knows the numbers, but popular social media sites in Bhutan, like Facebook and Instagram, are seeing the increasing presence of hundreds of mainly women, and even some men, declaring themselves as ‘Digital Business Owners,’ with their own personal websites through which you can register to “Run a Digital Business From Your Kitchen.”

However, the reality is that this, in all probability, is Bhutan’s biggest and fastest Multi Level Marketing Pyramid scheme, where the company in Japan called Enagic, that mainly sells water ionizing machines, and its few top recruiters, including some in Bhutan, make all the money while the vast majority are left holding expensive Enagic products that they do not really need or cannot sell.

Multi Level Marketing (MLM) schemes are not new, but they are globally controversial schemes where the main income comes as commission from recruiting more distributors by selling them overpriced products. MLM companies in the US, for example, have been involved in several legal cases and settlements, and have been compared to pyramid schemes.

According to the US trade regulatory body called Federal Trade Commission (FTC), it did an analysis of 350 MLM companies in USA and found that only 0.4 percent of those who take part in a product based MLM are likely to make money (with even most in this 0.4 percent not making much) while the sheer majority of 99.6 percent are likely to lose money.

The Enagic MLM scheme in Bhutan’s case is a MLM pyramid scheme, as the main way to earn money in this business is to recruit more people under you and get a ‘commission’ from their sales of overpriced Enagic products, and they, in turn, have to recruit more people. Despite the statistics and slim chances of making money in this pyramid scheme, many hang on with the dream of earning money.

What such companies do not tell you is that, mathematically, if every person recruits five people under them, and each of the five new recruits, in turn recruited another five each, then in 14 cycles or multiplications, it would essentially cover the entire population of the planet.

So while a very few at the top make money, eventually the pyramid will collapse and leave a vast majority of people at the bottom losing money or even in debt, in many cases. But the company stands to move on and form another pyramid.

Modus Operandi

None of these Digital Business Owners will tell you, upfront, what the ‘business’ is or even what ‘products’ you will land up selling, as this reporter found this out, when calling several members of the scheme, but they declined to share the business model or even the product.

Instead, the reporter was encouraged to sign up and shell out a refundable USD 149 to find out about the business.

The very nature of this scheme is deliberately secretive to avoid mass attention or the gaze of regulators. Since many are made a party to the system to recruit more victims to recover their money or earn more, it does not encourage whistleblowers.

However, there are also Bhutanese who are coming forward to share how they decided to stop the chain with them, and not create more victims, even if they lose their money to the scheme.

In addition, to the promise of ‘financial freedom,’ the business operates in such a way that the person recruiting you is usually a family member, or a friend, a former classmate, or work colleague, somebody in your social circle or someone you look up to on the social media living the good life due to this ‘business’.

For those who are interested, they will first be registered on the recruiter’s personal website by sharing your email address, after which you get access to a 90 minutes’ video about recorded testimonials by people, including Bhutanese members, of how the business helped them gain financial freedom and other benefits.

Interestingly, in this long video none of the testimonials talk about what the business is or what the products are.

After this, the person has to pay USD 149 to sign up, usually through a credit card. With this, the person gets access to more online materials and videos on the business, making more promises of financial freedom. An introduction is given on the business and the various steps up the ladder, which you can get by more sales, and also recruitments. Another USD 20 has to be paid to set up a personal website for you through which you can recruit more people.

You may think that you are in after paying all the fees, but now comes the main expenditure.

Just to join this network, it is compulsory to buy expensive products, with the minimum being Nu 70,000 worth of herbal tea of 20 packets containing 30 sachets each. However, most are encouraged to spend more than Nu 550,000 in buying a Kangen water ionizer, Kangen shower and the herbal tea. The products can vary slightly, but the price is around this range.

The ‘benefit’ of spending so much money on three products gives you a 2A rank as opposed to a beginner rank of 1 A for buying just one or two products, and so you are entitled to more commission if you make sales, or those who you recruit in the future make sales. Many opt to go for this three products option, and the money used is either from their life savings or by incurring a debt.

The level starts from 1 A and goes up to 6A which can be reached only with 101 plus recruitments or sales. You can go even above 6A as you recruit more people, and people under you achieve higher ranks like 6A.

Dr Tshering Cigay Dorji is a tech expert who believes this is a pyramid scheme, and he shared the account of a Bhutanese lady from Australia, on the condition of anonymity, who was a part of this scheme. She had gone for the Nu 550,000 plus package in Australia to start with a higher rank. She was recruited by a Bhutanese friend in Bhutan.

She said, “The only way I could earn an income for me was by recruiting more people below me. And when these people cough up their hard earned money to buy these unproven, but overpriced healthcare products, I would get a percentage as my commission. This is the business model of the whole scheme.”

The highly complicated compensation plan of Enagic requires members to make a direct sale every six months to get any commission from people you recruited, and if this is not done then your commission will drop to 50 percent, and after two years, there will be no commission.

“Yet, unlike me, most of the people who have joined would only say good things about this scheme. Why do they do it? They are greedy and want to make money for themselves. They already lost money like I did initially. Now, they want to recover the money, and also want to make money at the cost of others, which is totally unethical,” she said.

She said in her case soon after spending so much money, she realized the futility of the whole scheme, and how it was designed to cheat most participants out of their hard earned money.

“It is only the very few people at the top who would earn money at the cost of lot of poor victims. I have heard that one or two Bhutanese in Australia at reached ‘Dream Team’ status, which you reach after putting many, many people under your down line. By then, I think they start to earn some decent income. But that is only like a very few people. And they earn at the cost of other thousands of victims who are spread out all over the World – Bhutan, India, Bangladesh and countries in Africa. Many others who joined have lost similar amounts of money. I would request everyone to beware and keep away from such schemes,” she said.

A Bhutanese man who is also in Australia, Passang, shared that he invested some money around a year ago, but he did not get any amount back yet. He said he knows of some of his own friends who did the same.

“Hence, I would encourage everyone to refrain from such a business. There is a huge loss at the end,” he said.

Apart from making members tap all their family and social contacts to sell products and recruit more members, its members are encouraged to sell a lifestyle on social media centered around financial freedom, working from home, family time, etc.

Anna’s Analysis, a YouTube page known for in-depth investigations, found that globally the company’s distributors target anyone from terminal cancer patients looking for a final cure to people who have lost their jobs due to the pandemic, and even vulnerable and depressed people. It reels in people using an emotional appeal.

The business, initially, advertises itself as being flexible and a ‘side hustle’, but once members join, they have to spend large amounts of time trying to make sales of some very expensive products.

She points out that it leads to even toxic relations with family members who are either recruited in, and there are trust issues, or family members and friends who counsel against it are looked at suspiciously. The scheme not only encourages distributors to believe in and make false claims, but it also encourages predatory practices due to the money at stake.

The scheme has exploded in recent times due to the pandemic for three reasons. People have lost their jobs or income and want a way to make money, a lot more people are on social media with lockdowns, and thirdly, as people become more health conscious, the company’s distributors make outlandish and often false medical claims to sell their product (debunked on pg 1 story).

The network also becomes like an echo chamber as members have frequent webinars and seminars.

It is difficult for members to make sales as the water ionizers are already very highly priced, where more than 50 percent of the cost is kept for direct and indirect commissions.

The Company and its products

The Enagic company’s museum claims it was established in 1974 as Shiguma Ku, but its online Corporate History page it claims it started as Sony speciality trading operation.

It changed its name to Enagic in 1990, and began selling Kangen Water, which means ‘return to origin’ in Japanese.

In 1998 they developed the current 8-point commission structure, which would not be implemented in the company until five years later in 2003 when it opened the Los Angeles, USA branch office and became a MLM company.

The company mainly sells water-ionizing machines with the price ranging from USD 1,980 to USD 5,980. It also sells a water spa system called Anespa priced at USD 2,890.

However, they also sell soap (USD 760 for 32 bars of soap), tea (USD 760 for 20 boxes of 30 sachets each) and turmeric supplements (USD 760 for four-month supply). The company was sued for USD 27.6 million (mn) in USA for making unauthorized robo calls to 1.8 mn people.

The company, itself, and mainly its distributors make outlandish medical benefit claims, which are not backed up by credible medical research (see story on pg 1).

The USD 180 filter on the water-ionizing machines need to be replaced after every few months entailing extra costs in the long term.

The Recruiters

One of the better known digital business owners and a major recruiter is Leki Wangmo from Phuentsholing, who works in a State Owned Enterprise (SOE). She has done well for herself, according to her own Facebook business page, and she is also in the process of coming up with a multistory building.

Leki was initially reluctant to share the business details, and asked the reporter to check out the 90-minute video by registering. However, when the reporter talked to her about details of Enagic and the network of distributors, she said it is a renowned product and nothing like a pyramid scheme.

She said there was no commission to recruit members, but there was only commission from sales to them.

However, this statement does not make sense, as the only way to recruit a person is by selling products, and if a commission is shared from that sale then it is similar to a recruitment commission. In addition, the only way to buy the company’s products are from distributors, as you cannot order the products directly without being a member with a ID number.

She clarified that the USD 149 goes to the back end, and this can be refunded if a person does not want to join within a month. She said the business is a well proven system and people are not forced to join or buy products.

Leki said that the members engage in ‘lifestyle marketing.’ This is a term for the common nature of the Facebook or online advertisements by members, showing how joining this business has changed their lives.

Leki compared the members to be like RICBL or BIL insurance agents making a commission. She also pointed out the network is not the only one selling the products, but there are also ‘offline’ people who sell the products from their stores.

However, RICBL and BIL agents, while getting a commission for selling insurance, do not get additional commission for getting in new members.

Leki said that buying the products is akin to an investment in a business, like a ‘pan dokan’, and one has the option to invest more or less. She said that even if people do not sell the products, they can keep at home and enjoy the ‘benefits’.

She emphasized that the company had been formed in 1974 in Japan, and there are offices in 23 countries.

She questioned the motives and ‘vested interests’ of those who are questioning this business on Facebook, and she said they have the right to sue people who make false claims against them.

This was on Thursday evening. On Friday afternoon, a freelance journalist, Namgay Zam, shared the account of the Bhutanese lady in Australia (sent by Dr Tshering Cigay Dorji to her and this paper) on her new Facebook page, which went viral.

An hour or so later, Leki Wangmo went Live on Facebook to defend the allegations with the main points being that the business is legitimate, nobody is forced to buy the products and that ‘vested or biased people’ including journalists are questioning them.

In what is common practice in this business, as in other parts of the world, Leki criticized the anonymous woman who had shared her account and blamed her for not understanding the business.

This is one of the reasons why whistleblowers are afraid to come out as they can get blamed for failures, and are stigmatized by their former network even though the real chance of success is very slim.

Leki’s post too went viral, showing social media power, and she had many network members from Bhutan supporting her in the comments section showing the large and dedicated membership base in Bhutan.

This brings to light the almost cult-like culture of the business, where apart from being secretive, the majority of its members are almost brain washed by the company, senior recruiters and even each other into thinking they are in a legitimate productive business, they can make money and they are selling good products which help people. Add a lot of personal savings or potential income at stake, and the mix gets explosive and very personal very quickly.

A Global Cult Authority, Steven Hassan, has written saying that almost all MLMs are like commercial cults and warns people about them.

Another member and recruiter is Sonam Deki. She too gave similar talking points as Leki, about it being legitimate, not a pyramid scheme and people not being forced to join and the company being formed in Japan many years ago with networks in 23 countries.

She said the network has decided to declare their income, and are talking about getting a license for doing business in Bhutan. Sonam said that this is not a short-term investment, as Bhutanese run after high returns in a short term, but this is a long-term investment.

What the Laws and Govt agencies say

This is not the first MLM pyramid scheme in Bhutan, as there have been many in the past. In 2019, the MagneSSa scheme saw around 2,000 young graduates and youth signing up to pay Nu 35,000 membership fees and earn money through selling health supplements, and also recruiting additional members. Most of them lost their money, not only on the membership fees but also on unsold products.

Pyramid schemes are not allowed in Bhutan by law. As per Section 38 (xiii) of Consumer Protection Rules and Regulations (CPRR), 2015, business entities are refrained from establishing, operating or promoting a pyramid promotional scheme where a consumer receives compensation that is derived primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products.

The OCP in December 2021 issued the Pyramid Scheme Identification Guideline.

It identifies a pyramid scheme saying, ‘Some schemes may purport to sell a product but they often simply use the product to hide their pyramid structure or disguise the scheme. Generally, a product sale is between the members or to the new recruits and there is little or no transfer of products in the markets. The incentive program of schemes compels recruits to continuously recruit additional down line members and buy or sell products often at inflated prices;”

It says, ‘Members are made to purchase products of the company periodically for a certain price. There is no product buy-back policy or other safeguards, if the members are unable to sell the goods. Members at the top of the structure receive substantial compensations and profits based on the recruitments and payments by the down line members.’

It also says there is very little or no revenue generated from the retail sales of the products and services that are associated with the scheme. The recruit’s income is dependent on payments by new members they enlist rather than from the sale of products or services.

From the above points, the Enagic business model fits into a pyramid model albeit a hybrid and modified one, but with still the same basic characteristics listed above.

A 2009 RMA Notification says there are two types of Pyramid schemes. One is product based and the other is financial. RMA says there are many variations of the pyramid scheme, and some try to pass themselves off as MLM or Direct Selling.

RMA says their products typically have little or no intrinsic value and and is sold at prices way above the market value. It says nobody would buy these products except as a way of joining the pyramid scheme itself. The ‘product’ may consist of household products, vitamins, cosmetics, etc.

It is also not clear if the members who make a lot of income declare that income.

The Bhutan CIRT, which looks after cyber crime and incidents, issued a notification on Friday in tandem with OCP under MoEA and RMA warning about online investment schemes though it does not specify the schemes in detail.

When asked about her response to the Bhutan CIRT notification, Leki Wangmo said that the notification is every general, and it has not done any investigation.

Leki is right, in that no investigation has been done on the issue, as the buck has been passed from one agency to another with no agency taking the lead.

A RMA official said that the lead on product based pyramid schemes has to be looked after by OCP, though RMA is looking at the financial details of how money (foreign exchange) is leaving the country in such schemes, and what can be done about it.

An OCP official said they were not aware of the scheme, as there was no complaints and it was only brought to their attention a couple of days ago. A review is under way.

The Bhutan CIRT also said it did not get any complaints on the issue, and it is only an IT body with limited powers and the lead should be taken by either OCP or RMA.

However, Enagic is not the only MLM or Pyramid scheme in Bhutan, as there are others also coming up like QNET, SaladMaster and others.

FAQs

Is Kangen a pyramid scheme? ›

Kangen Water is not a pyramid scheme, despite what others might be saying. As you can see, Kangen Water has many different kinds of water machines to sell.

Is Enagic business legitimate? ›

Enagic is an MLM SCAM

You can't buy an Enagic product unless you become a distributor they rely entirely on lies and non sensical science that they claim to be fact. For instance one claim is that the ionizers are able to change the PH of the body.

What is Kangen water and is it a pyramid scheme? ›

Kangen water is sold through a network of multi-level marketers (MLM). A marketing pyramid of MLM sales people get paid off every time a machine is sold. Their exorbitant compensation is the reason the kangen water® costs twice as much as competing water ionizers.

Is enagic direct selling? ›

Enagic USA is a proud member of the Direct Selling Association, a highly-prestigious direct-marketing members-only association.

How do you make money with Enagic? ›

How To Make Money With Kangen Water In 2022 (For Beginners)

Is Enagic water a pyramid scheme? ›

Bottom line is that Enagic is a 40+ year old Japanese company that makes iconic Kangen Water machines like Leveluk K8 and SD501. They are a Multi Level Marketing company, but it's simply their way of marketing their product. There is no scam and there is no pyramid scheme going on.

Who is the CEO of Enagic? ›

Hironari Ohshiro - Founder and CEO @ Enagic - Crunchbase Person Profile.

Is Kangen water worth buying? ›

Top positive review

Obviously it is expensive buy, but the number of health benefits I started to experience from KANGEN water from this device, makes it more then worth it. With 2 weeks of drinking KANGEN water I notice my energy is increased. Aces and pains in my body have drastically reduced. No more constipation.

Who owns Enagic? ›

Enagic is founded by Hironari Oshiro, President and CEO in Japan and Kangen Water is a registered trademark of Enagic Co., Ltd. The company is privately owned. Enagic originated in Tokyo, Japan in June, 1974.

Is Kangen water FDA approved? ›

There are many ionizers on the market, but Enagic's Kangen machine is the only one known as a medical device. It has been FDA-approved for therapeutic use. This distinction means that it is not just a "water ionizer" but rather a "medical device." It can be prescribed by doctors and used in hospitals.

How much is the Kangen machine? ›

A Kangen water® machine cost around $4000, that's a lot of money.

Do Kangen water machines work? ›

The health claims made by both Enagic and its users about acid and alkaline water are false, and research on the benefits of ionized water are sorely lacking.

How old is Enagic company? ›

History. In 1974 in Okinawa, Japan, Sony's trading operation, the precursor of Enagic, began operations. Ever since, Enagic commitment to high quality products, innovation and True Health philosophy has made it the leader of water ionizer generating systems, now distributed globally.

What kind of company is Enagic? ›

Enagic is an integrated development, manufacturing, sales and service company of alkaline ionizer technology.

How do I become an Enagic distributor? ›

You can become a distributor by buying a machine from another existing distributor. Once you place the order the system will ask you if you want to become a distributor. You then select "Yes" and provide the required information.

How much do Enagic distributors make? ›

How much does a Distributor make at Enagic USA in the United States? Average Enagic USA Distributor yearly pay in the United States is approximately $81,966, which is 76% above the national average.

Who is the CEO of Kangen water? ›

Rahul Duhlani - Founder - Meraki Kangen Water | LinkedIn.

Who is the owner of Kangen water? ›

Pat shaffer - CEO/President of KangenWaterNorthWest - Kangen/Enagic. Change your water..... Change your life | LinkedIn.

How much money do you make selling Kangen water? ›

When you first join you start at rank 1A - As an example for your first sale you sell a K8 - you will make $340 commission . Then you sell another K8 - again you will make $340 commission. On your 3rd sale you go up in rank to 2A - now you sell another K8 - this time you make $680 commission.

Does enagic have payment plans? ›

We have various plans depending on your country of residence that range from 3 months to 24 months allowing you to spread the cost of the machine according to your budget. There are no credit checks with our in-house installment plans but Enagic does retain the right to refuse an application for finance.

Can you sell your Kangen machine? ›

Anyone who purchases a Kangen Water Machine can become a distributor by signing an agreement form along with their purchase order form. A distributor has the right to sell worldwide not just the country they live. Enagic's unique compensation plan makes it very attractive for you to become a distributor.

Is Kangen water Approved by FDA? ›

There are many ionizers on the market, but Enagic's Kangen machine is the only one known as a medical device. It has been FDA-approved for therapeutic use. This distinction means that it is not just a "water ionizer" but rather a "medical device." It can be prescribed by doctors and used in hospitals.

Is Kangen water worth buying? ›

Top positive review

Obviously it is expensive buy, but the number of health benefits I started to experience from KANGEN water from this device, makes it more then worth it. With 2 weeks of drinking KANGEN water I notice my energy is increased. Aces and pains in my body have drastically reduced. No more constipation.

How much can you make selling Kangen water? ›

For each Kangen water machine purchased using your referral code, you earn a commission anywhere between $340 and $2040 per sale as a base commission. However, you can earn up to $5000 per sale when investing in several products.

Who owns Kangen water? ›

Rahul Duhlani - Founder - Meraki Kangen Water | LinkedIn.

What doctors say about Kangen water? ›

Drinking “good water;” especially hard water which has much calcium and magnesium keeps your body at an optimal alkaline pH. “Kangen Water® is alkaline rich water (ph 8-9), and is considered the very best drinking water because of its incomparable powers of hydration, detoxification, and anti-oxidation.”

Do Kangen water machines work? ›

The health claims made by both Enagic and its users about acid and alkaline water are false, and research on the benefits of ionized water are sorely lacking.

What happens if you drink alkaline water everyday? ›

A: Drinking a bottle of alkaline water every other day won't significantly affect your body. However, if you drink a gallon of alkaline water daily, your body has to work hard to maintain its pH and that means that over time, your body will produce more gastric juices and digestive enzymes.

How much do Kangen machines cost? ›

A Kangen water® machine cost around $4000, that's a lot of money.

How much money do Enagic distributors make? ›

Average Enagic USA Distributor yearly pay in the United States is approximately $81,966, which is 77% above the national average. Salary information comes from 10 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months.

What type of business is Enagic? ›

Enagic is an integrated development, manufacturing, sales and service company of alkaline ionizer technology.

How old is Enagic? ›

The company is privately owned. Enagic originated in Tokyo, Japan in June, 1974. Kangen Water is a product that will transform tap water into alkaline drinking water that is purged of impurities.

Who is the owner of Enagic? ›

Hironari Ohshiro is the current Founder and CEO of Enagic.

Who is the CEO of Enagic? ›

Pat shaffer - CEO/President of KangenWaterNorthWest - Kangen/Enagic.

Do Japanese drink Kangen water? ›

For more than 40 years, Kangen Water® has been used in Japan to help restore the body to its original, alkaline state. These machines can transform your ordinary tap water into healthy, fresh tasting alkaline drinking water. Kangen Water® is superior to tap and purified water.

The problem with the Japan based Enagic company and its expensive water ionizing machines which produce ‘ Kangen water’ is not only the Multi Level Marketing Pyramid Scheme (see main story) in Bhutan and the financial risks for its members, but its distributors across the world and in Bhutan have made medical and health benefits not proven by credible scientific research and tests.. The biggest public claim made by Kangen water distributors is that its water ionizing devices are a medical device in Japan used in a large number of Japanese hospitals.. Another major claim by Enagic distributors is that the Electrolyzed Reduced Water (ERW) created by Water Ionizers passing an electric current through water is good for your body as it is alkaline and reduces the acidity in your blood or body and improves PH balance.. Over the years, to prove the scientific basis of their health claims, Kangen distributors have compiled a list of ‘scientific studies’ to show the effectiveness of ionized water or alkaline water or even HRW.. A popular marketing strategy by distributors is to line up Kangen water with other mineral waters and tap water and soda water and do a PH test using a chemical or a machine.. In more neutral non Kangen water tests of mineral water bottles there are several waters that have a neutral PH.. The aim of the whole test is to show tap water and mineral water being unhealthy and only Kangen water being a reliable product.

Summary: To make money with Enagic you will need to sell a good amount of very expensive water purifying machine and recruit other people to sell as well (where the real money is).. Most people that work at an MLM like Enagic make very little money or lose money.. Enagic is a Japanese water filtration company that makes products that allow people to drink “healthier water”.. As discussed above, you earn money from commissions of sales you make and a percentage of the sales the people you recruit make.. Enagic counts as direct selling as it consists of two main business models: single-level marketing, in which a direct seller makes money by buying products from a parent organization and selling them directly to customers, and multi-level marketing (as described above).. Is Enagic a good way to make money?. PR Newswire shows that 73% of all people involved in MLM companies lose money or make no money.. No, Enagic is not a pyramid scheme but that does not mean that it is a good way to make money.. You need to shell out at least $1980 just to get started and there is a good chance that you will join the 3/4 of people that make no money or lose money from an MLM.

… directs promoters and distributors to immediately stop it Phub Dem Both online and offline scheme in Bhutan that deals with Enagic machines or Kangen water filter is a pyramid scheme, according to the Office of Consumer Protection (OCP).The office directed the existing promoters and distributors, whether operating online or offline, to immediately stop such business practices.In a press release OCP issued yesterday afternoon, it stated that participating in a pyramid scheme is prohibited and will be dealt with as per the Consumer Protection Act of Bhutan 2012 and other relevant laws of the country.It also stated that OCP holds the mode of business operation, online and offline, adopted by the promoters and distributors of Enagic Alkaline Ionizer and water filtration machines or Kangen Water machines as a pyramid scheme.. (adsbygoogle = window.adsbygoogle || []).push({});. The issue came to the limelight when some social media users alerted people to be cautious of the online digital business earlier this year.According to the OCP, the scheme is primarily based on enticing individuals to purchase machines, claiming health benefits of the Kangen Water, which is not validated by any competent authority.Besides, it states that the scheme entices buyers to register as members by promising compensation (commission) when they register new members.. “To become a member, buying one of the products is mandatory, such practice violates section 38 (xiii) of the Consumer Protection Rules and Regulations 2015.”The section states that establishing, operating or promoting a pyramid promotional scheme where a consumer receives compensation that is derived primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products is classified as unfair trade practice and illegal.. (adsbygoogle = window.adsbygoogle || []).push({});. OCP, however, ruled that importing and selling the machine through retail or online sales of Enagic products is permissibleafter obtaining a valid trade license or an e-commerce license to assure that they will not engage in scouting and registering new members.The office asked the public to refrain from engaging in this scheme by becoming a member to promote the scheme further by introducing downline members.Before advertising their products as having health benefits, the OCP asked the retailers or e-commerce businesses of these products are informed to seek prior approval from competent authorities, keeping in accord with the Medicines Act of the Kingdom of Bhutan 2003.. (adsbygoogle = window.adsbygoogle || []).push({});. OCP’s investigation The Enagic business, both online and offline, started in Bhutan in 2019.According to the OCP’s chief programme officer, Jigme Dorji, the online method that began in 2020 is operated and promoted by a business entity called “Digital Business” and uses the Enagic business model to sell the Enagic products and provide compensation to the members.The prospective online members are first introduced to the “Digital Business” and encouraged to undergo activities such as attending webinar sessions, and pre-coaching, after paying USD 149.Then a mentor and coach introduce the Enagic business models and the products involved (Enagic Alkaline Ionizer and Water Filtration Machine or Kangen Water Machine).He said that in the offline method, the members do not have to undergo prescribed activities of “Digital Business”, and there is no requirement to pay a fee of USD149.. (adsbygoogle = window.adsbygoogle || []).push({});. The distributors promote the prospect and benefits of Kangen water or alkaline water through product demonstration, face-to-face presentations, and focused group presentations using various platforms claiming health benefits, selling products and looking for prospective members to join as distributors and members.Jigme Dorji said to participate in the scheme as a distributor or member and earn commissions, both methods require the members first to purchase the Enagic machines and register with the company using the referral code of the upline distributor or member.According to him, the compensation or commission is paid on both direct and indirect sales based on the Patented 8-Point compensation system based on the ranks of the distributors and the model of the products.. To remain active in the scheme and earn a commission, the distributor must make direct sales within a specified time frame.”It was found that the scheme emphasises the introduction of downline members and the commission is based on downline members, besides direct sales.. (adsbygoogle = window.adsbygoogle || []).push({});. In such case, the distributorship gets terminated.”Jigme Dorji said that it was mandatory to buy a product to become a registered distributor and participate in the scheme, adding that such practice has sustainability issues as the scheme requires the recruitment of downline members which will exhaust at one point of time in any given geographical location.He said that the recent entrants, which form the major groups, will be affected the most if the scheme collapses.“There is an affordability issue given that the Enagic products are expensive, which will limit the entry of new entrants or distributors.”. According to OCP, the cost of Enagic products ranges between USD 2,890 and USD 5,980.Jigme Dorji said a few entities had availed trade licenses to import and distribute Enagic products, notably the Kangen Water Machines and around 15 commodities sell bottled Kangen Water.He said that more than 150 online members, including the Bhutanese living overseas in places such as Australia, the Middle East, USA and Canada, are selling Enagic products online without a valid e-commerce license.Jigme Dorji said that the distributors and promoters were directed to immediately stop the sale and promotion of Enagic products through the pyramid scheme.. Drug Regulatory Authority The director of the Drug Regulatory Authority, Wangdi Gyeltshen, said that if the distributers claim the device has medicinal values, they should register with DRA as the equipment becomes a medicinal device.He said that the DRA and distributor reached an understanding that if they claim medicinal values, they cannot sell the device and if they want to claim medicinal values, they must register with DRA.

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Author: Prof. An Powlowski

Last Updated: 05/23/2022

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Name: Prof. An Powlowski

Birthday: 1992-09-29

Address: Apt. 994 8891 Orval Hill, Brittnyburgh, AZ 41023-0398

Phone: +26417467956738

Job: District Marketing Strategist

Hobby: Embroidery, Bodybuilding, Motor sports, Amateur radio, Wood carving, Whittling, Air sports

Introduction: My name is Prof. An Powlowski, I am a charming, helpful, attractive, good, graceful, thoughtful, vast person who loves writing and wants to share my knowledge and understanding with you.