In September 2014, the Malaysian Ministry of Tourism and Culture (MoTC) launched an investigation into WorldVentures, following a local media exposé that branded the company an "illegal business" and a "money game." The inquiry focused on the firm's operations, which had reportedly attracted 20,000 affiliates in Malaysia.
The unraveling began that September, when local Malaysian media outlets started investigating the scheme. A reporter from The Rakyat Post attended a WorldVentures recruitment meeting, observing about fifty other people in attendance. The Rakyat Post concluded WorldVentures operated as a "money game."
This exposé prompted the MoTC to confirm it was investigating the company. WorldVentures had registered with the Ministry of Trade and Industry in September 2013, a registration valid until March 2015. However, its purported sale of travel packages raised questions about its lack of registration with the MoTC, which oversees tourism-related businesses.
The President of the Malaysian Chinese Tourism Association stated in an interview with The Rakyat Post that WorldVentures held a direct sales license. However, the absence of an application to the Ministry of Tourism for a tourist license rendered it an illegal business. Days later, the MoTC confirmed WorldVentures lacked a license for tourism-related sales. Tourism officials emphasized they had not issued a license to the company, making its operations illegal. A direct selling license does not cover tourism-related activities. Malaysian law also prohibits travel agencies from selling memberships or membership cards.
Nuola Zi Ling, representing the MoTC, confirmed WorldVentures operated illegally in Malaysia when asked directly by The Rakyat Post. Preliminary investigations indicated WorldVentures had violated the 1992 Tourism Act. Conviction under this act could lead to a fine not exceeding RM50,000 (approximately $13,989 USD), imprisonment for up to five years, or both. Violators also faced an additional RM5,000 ($1,398 USD) daily fine for failing to cooperate with the MoTC.
WorldVentures responded a day later, claiming it "only sell t-shirts and other tourism related products." A visit by The Rakyat Post to WorldVentures' Malaysian office yielded a similar statement: "the company does not sell any travel packages, we really are not a travel company. We are a direct sales company, selling tourism related products like sunscreen, lip-balm and t-shirts."
This claim aligned with the company's actual model, which involved selling affiliate memberships that granted access to third-party travel discounts, rather than direct travel packages. The possibility remained for affiliates to earn commissions solely through recruitment, bypassing travel sales entirely.
Following the MoTC's declaration of illegality, WorldVentures affiliates began quitting and demanding refunds. A WorldVentures "senior sales staff" member informed The Rakyat Post he had reported the issue to the US company, expecting relevant departments to address the problem. WorldVentures had previously asserted members could receive full refunds upon quitting. However, Rakyat Post readers claimed refund attempts were unsuccessful, with some reporting multiple failed contacts with the company. Affiliates then heard refunds were only issued during a "cooling off period." Some individuals reportedly declared their credit cards stolen to stop billing, but this also failed, as the company would send letters to recover owed monthly fees.
On October 12th, WorldVentures issued a corporate statement addressing the situation. The company stated it was examining its business model to ensure legal operation in Malaysia. This was not the first time WorldVentures faced scrutiny; Taiwan's Apple Daily had reported on the company's questionable business model earlier in 2014, although no significant regulatory action beyond fines was publicized there.
WorldVentures' entry into Malaysia in October 2013 had been met with fanfare. Co-Founder and CEO Mike Azcue had then stated, "Asia is one of our fastest-growing regions, and Malaysia's latest economic growth is greatly benefitting consumers. Those reasons combined with Malaysians' passion for unique travel experiences make this country a natural match for both our vacation club memberships and business opportunity."
By July 2016, after over a year of negotiations, WorldVentures convinced the Malaysian government that it did not require a tourism license. Acknowledging that it primarily sold affiliate memberships, WorldVentures reportedly skirted the license requirement by partnering with a local Malaysian travel company that held the necessary permits.