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A new law against pyramid sales took effect yesterday, forcing a Hong Kong sales group to close  its Macau outlet.
More than 100 mainlanders queued in a Macau building for refunds from Lampe Berger,  whose Macau business ended yesterday, with many claiming to be victims of pyramid schemes.
A statement by Lampe Berger Macau said a new law, known as No3/2008, had resulted in its forced closure and termination of all sales contracts.
'Lampe Berger Macau unwillingly decided to fully end its business in the Macau Special Administrative Region to avoid possible violation of the new law,' the statement said.
The  group has at least five outlets in Hong Kong  and offices in Singapore, Thailand, the Philippines, Indonesia and Australia.
Hundreds of mainlanders have bought wine, spa oil and skin care products from Lampe Berger Macau and sold them to other mainland residents in the past few years.
Foshan  resident Lu Hui, 30, said she was eager to get a refund for Lampe Berger products that she had bought for 80,000 yuan (HK$90,800).
'I've been coming to Macau to buy from Lampe Berger in the past two years,' Ms Lu said. 'My friend has gathered a bigger stock, worth 400,000 yuan.'
Lampe Berger Macau has offered refunds of 30 to 80 per cent to 'dealers' such as Ms Lu. But she was upset that her goods  would fetch less than 20,000 yuan in refunds. She  said she had learned a lesson and would stay away from multi-tier sales for good.
Several  hundred mainlanders  went to the company's office at Dynasty Plaza, Macau,  last month demanding refunds.
Most of them came from Guangdong cities, including Shunde , Zhongshan , Xinhui  and Jiangmen .
Some of them said they had  spent  1 million yuan buying products at prices much higher than their market value.
But Lampe Berger has stressed that it practised direct sales rather than pyramid sales and dismissed some mainlanders' refund demands as unreasonable.
Those who queued for refunds yesterday said they had no choice but to accept low repayments. The seemingly slow refunding process was marked by  booing from those in the queue and skirmishes between journalists and security guards who tried to stop pictures being taken.
Under the new law against pyramid sales, offenders can be punished with up to 10 years' jail.  Pyramid-sellers also face huge fines, with the law allowing a maximum of '800 days of fine'.
A day's fine can range from  50 patacas to  10,000 patacas, depending on a culprit's financial status.
Legislator Jose Coutinho  said Lampe Berger Macau's closure showed that the new law had the effect of deterring multi-tier sales.



HK firm shuts down in Macau  as pyramid-sales ban takes effect