DISMANTLING THE MULTI-LEVEL MARKETING SCHEME OF HERBAL MEDICINES: BETWEEN CONVENTIONAL REGULATIONS AND SHARIA PRINCIPLES

Abstract

The practice of Multi-Level Marketing (MLM) of herbal medicines is increasingly rife in Indonesia and there is the potential for fraud that often occurs in this practice. This study aims to dismantle the MLM scheme of herbal medicine from the point of view of conventional regulation and sharia principles. The methodology used includes literature study, legal analysis, and interviews with experts. The results revealed that there is an herbal medicine MLM scheme that violates conventional regulations and sharia principles. The conclusion of this study is the importance of strict supervision of herbal medicine MLM and the need to educate the public about legal and sharia MLM schemes. The practice of Multi-Level Marketing (MLM) of herbal medicines is increasingly widespread in Indonesia. MLM herbal medicine is a marketing system where members get a commission from selling products and recruiting new members. This shows the need for research to dismantle herbal medicine MLM schemes and uncover potential frauds that occur. In addition, there are also sales of illegal products that do not have official permission from the Food and Drug Supervisory Agency (BPOM). Pyramid schemes are also one of the findings of this study, where many herbal medicine MLM players jointly profit by recruiting new members without making substantial product sales. These findings point to the need for close supervision of herbal medicine MLM practices to protect consumers and prevent potential violations of sharia laws and principles. After conducting this research, it can be concluded that herbal medicine MLM needs to get close supervision. Research findings show violations of conventional regulations and sharia principles in herbal medicine MLM practices. Therefore, it is necessary to educate the public about legal and sharia MLM schemes so that they can understand the rights and obligations as smart consumers. In addition, there is also a need for increased regulations to monitor the practice of herbal medicine MLM in order to protect consumers and maintain the integrity of the MLM business in Indonesia.