Vision Company's entire production imported toArmeniais sold in the shadows. And more than a dozen imported food supplements are not registered by the pharmaceutical agency.

All Vision products are sold in the shadows

We managed to find out from the Customs Department the quantity of food supplements imported toArmeniain 2000, 2001 and in the first quarter of 2002. There was an unprecedented rapid rise in the quantity of imported supplements. In 2000 it amounted to 99,384 kg, in 2001 to 172,036 kg, and in the first quarter of 2002 to 38,238 kg. These supplements are mainly imported from three countries -Russia,GermanyandItaly. The Customs Department does not register the names of the companies that have produced the imported food supplements. Thus, it is unknown what portion of this amount is produced by the Vision Company. Who are the supplements imported by, and what is more important, where are they sold? We have not thus far been able to find out the answer to the first question. According to our information, they are imported by the well-known drug importers, and employees of the Ministry of Health assist them with sales. We found out that in a number of hospitals, doctors prescribe the Vision Company's rather expensive food supplements. Patients are supplied with the supplements by the doctors themselves. The Ministry of Health is undoubtedly aware of this.

We have tried in vain to buy Vision's food supplements in 17 drugstores inYerevan. They are not sold anywhere. Only in two drugstores were we told: "If you tell us what you want we will get it." Apparently, the entire production imported toArmeniaby Vision is sold in the shadows. As for who the real owners of the company are, we have not thus far been able to find out. The Ministry of Health ofArmeniahas registered the imported food supplements since 1996. In response to our inquiry to the Ministry, the head of the Agency for Drugs and Medical Technologies, Emil Grigorian, presented us with a list of the food supplements produced by Vision in 2000. It consists of 24 names. More than a dozen of the food supplements we were offered in theYerevanoffices of the Vision Company were absent from the list. It is obvious that a significant portion of the food supplements imported toArmeniaare not only unregistered by the Drug agency, but also do not undergo any laboratory testing. Hence, their contents are unknown.

According to Decision #347, 2001 of the Government of Armenia, food supplements must be registered as drugs. And the registration of drugs is done on the basis of "scientifically based quality, effectiveness, and safety criteria, and the results of expert examination". The expert examination of drugs is carried out by the Drug Agency. If the food supplements have not undergone appropriate examination, then the lives of those who use them are endangered. Let us add that the importer is required to pay $400 for registration of each individual type of imported food supplement.

Financially independent people work "underground"

Every organization or individual inArmeniatries through similar announcements to tempt unemployed, financially insecure Armenians. They offer jobs abroad or unbelievable and unrealistic salaries.

The announcements above lead to the Armenian offices of the "Vision International People Group". This organization has never been registered by the Ministry of Justice. We tried to get information about the advertised jobs over the telephone. The office-worker avoided answering any questions, and invited us to visit their office instead. At the office we were received by the distributor - "If you want to be healthy and financially independent you have chosen the correct address". The eloquent distributor gave us very limited information about the advertised jobs and invited us to participate in special two to five day workshops. We accepted the proposal and paid AMD 5,000 (about $9) for both of us. Concurrently, we visited more than a dozen offices.

By paying $25, we became Vision distributors

The employees of various offices operating inArmeniaunder the name of Vision do not work together, but get together only during presentations; therefore the working conditions they offer differ. The workshops mainly charge a fee (only in three offices we visited were they free of charge). The payment is from AMD 1,000 to 2,500 (about $2-$4). In the course of the workshop, the Vision distributor introduces the company's history, the elements of marketing, and the Vision products. The products are diverse - biological food supplements, cosmetics, therapeutic belts, etc.

After learning all this in the course of five days, passing a test, and paying $ 25, we signed a trilateral contract - between the Vision Company, the job seeker and the teaching distributor (the information sponsor). According to the contract, we could participate in all additional distributor's workshops free of charge, get the necessary literature and other privileges, and what is most important, we would be entitled to a 40% discount on Vision products. The payment for the contracts vary - $1, $25, $26 or $30. According to Shushan Sargissian, a Vision distributor, "The real price of the contract is $25; those who sign the $1 contract do not receive the privileges of the real contract".

Thus, after two months of investigation, we discovered more than ten offices operating under the name of Vision. We also found out the prices for workshops and contracts.

Generally the contract is signed in the presence of several distributors. The information sponsor and the "fledgling" distributor place their hands on a "sacred document" - the contract, and another distributor acts as a "confessor". During this procedure, the future distributor pledges to use at least one Vision product, to abide by company regulations, etc. This trial ends with the proclamation of the decision to add the newcomer to the ranks of distributors. After that the Vision employee badge, the books for beginners and copies of other literature are presented. By signing the contract, the distributor commits himself to abide by the 29 clause requirements attached to it. According to Shushan Sargissian, the offices operating inArmenia get the contracts, literature and products fromMoscow, although a different address is mentioned in the contract - 24aArchimedes Street, 2411,Nicosia,Cyprus.

"We are not supposed to give out a lot of information, to explain at length how you work, get paid. We must not give exhaustive answers; we should intrigue", says Sargissian. After "intriguing", some try to be more or less frank and inform us that the workshops are followed by the signing of a contract. There have been cases in which many distributors do not provide such information, and conflicts with applicants arise. "In this hard situation I have barely managed to borrow money to pay 2,500 Drams for my daughter's workshop. And now you tell me to pay $25. Where should I get it from? Why didn't you tell me in advance? You present a person with a fait accompli. As a result that 2,500 Drams is lost", says a mother of one workshop participant.

We work "underground"

As we have already noted, Vision International People Group does not have representation inArmenia; however that does not prevent the local offices from acting on its behalf and from selling Vision products. These products include anti-stress pills, pills with regenerative properties (biological food supplements), anti- radiation devices, nutritive ointments, etc. "Vision products should be sold in drugstores, but because the production costs and freight charges are already high, if they enter the drugstores the price will be much higher and people will not be able to use them", explains Sargissian.

That is why Vision organizes its commodity circulation through network marketing. Vision's marketing program offers distributors two ways of earning money: by distributing products to an established clientele - profit is made through the 40% discount Vision offers; and through the creation of one's own network. A certain percentage of money from the products sold by group members goes to the group-leader - the network's information sponsor.

Even though more than ten offices are operating inYerevan, we have not seen any signs with the name of the Vision Company. Often the office conceals its existence under the name of a diagnostic center. For example, according to the director of the office located at 27 Sayat-Nova Street, Yuri Aghekian (a former employee of the Ministry of National Security), the Vision Company has no relation to diagnostics-- it simply rents the space adjacent to the center. In any case, however, Vision works with the diagnostic center: distributors direct clients to the center for examination, and then offer treatment using Vision products. They make the clients potential distributors by inviting them to sign a contract in order to buy the necessary products with a 40% discount. This way they enlarge the distributors' network. Vision's distributors have their Code of Ethics. Article 6 of the Code states that distributors are obliged to abide by the requirements attached to the contract. Point 26 of the requirements states that the activity of distributors must comply with the laws of a given country; that distributors are obliged to follow the legal, social and taxation norms of the country.

"We work 'underground', but we are registered with the Ministry of Health", says distributor Shushan Sargissian. During one of our conversations, she admitted that they "work illegally, and all the issues related to the taxation department are taken care of by Yuri Aghekian". According to Article 17 of the Code of Ethics, if a distributor does not abide by the regulations attached to the contract, the company either temporarily suspends his or her activity or invalidates the contract.

The Vision Company also produces cosmetics, anti-radiation devices, jeans, belts, etc. All this is also sold in the offices. Naturally, these products can't be found in stores either.

In contrast to Sargissian, other distributors maintain that everything is legal. But in reality, their activity cannot be legal. None of these offices acts as a Vision representative. For example, the office located at27 Sayat-Nova Streetdoes all its business through Yuri Aghekian, director of the diagnostic center. To our inquiry as to why the office does not have a plate indicating Vision's name, Aghekian told us, "If Vision had representation, not just members, then it could have a name-plate. Vision does not exist inArmeniaas an organization. However, the taxation department knows that members of Vision work here, do you think it doesn't? People here work as private entrepreneurs".

According to Shushan Sargissian, the diagnostic center has nothing to do with Vision; however, according to other distributors in the office, it is Vision itself that provides the diagnostic equipment. The center's doctor, Greta Golovian, informed us that the equipment is her property. Clearly, the employees contradict each other.

In this week's GIND Weekly (want-ads), new addresses for Vision have appeared. Hundreds of people are engaged in a business that is led by well-known "unknown people". All the businesses inArmeniaare developing apace.