This is one of new contents prescribed at the Decree No. 42/2014/ND-CP dated May 14, 2014 of the Government on management of multi-level marketing activities.
Accordingly, multi-level marketing businesses are prohibited to commit the acts as requesting persons wishing to participate in multi-level marketing to deposit or pay a certain sum of money in any form in order to have the right to participate in a multi-level marketing network; requesting persons wishing to participate in multi-level marketing to buy a certain quantity of goods in any form in order to have the right to participate in a multi-level marketing network;
Requesting persons wishing to participate in multi-level marketing to pay an additional sum of money in any forms to have the right to maintain, develop or expand their multi-level marketing networks; unreasonably restricting in any forms multi-level marketing participants’ right to develop their networks and so on.
Also from July 01, 2014, permitting multi-level marketing participants to receive commissions, bonuses or other economic benefits from luring other persons into participating in multi-level marketing; refusing to pay, without plausible reasons, commissions, bonuses or other economic benefits to be enjoyed by multi-level marketing participants;
Requesting multi-level marketing participants to recruit, or expand multi-level marketing contracts with, a certain number of multi-level marketing participants in order to enjoy commissions, bonuses or other economic benefits; requesting participants to conferences, seminars or training courses on one of the contents to pay money or charges in any forms other than reasonable expenses for purchase of training documents;
Also from July 01, 2014, an organization registering multi-level marketing activities must satisfy conditions as it is an enterprise established in Vietnam in accordance with law which has registered the retail business by the mode of multi-level marketing; its legal capital must be VND 10 billion dong; goods traded by the mode of multi-level marketing conform with the enterprise registration certificate or the investment certificate;
It satisfies the business conditions or has obtained a certificate of eligibility for business as prescribed by law in case it trades in goods subject to conditional business…..
This Decree replaces the Decree No. 110/2005/ND-CP of August 24, 2005 and takes effect on July 1, 2014.
