Chapter II
MULTI-LEVEL SALE ACTIVITIES
Article 6: Responsibilities of multi-level sale enterprises
1. Multi-level sale enterprises shall have to formulate and publicly announce the rules of activities of enterprises and participants in multi-level sale activities;
2. Multi-level sale enterprises shall have to supply the persons who wish to join their multi-level sale networks with documents regarding the following contents:
a. Sale programs, covering modes of bonus payment; model contracts which enterprises would enter into with participants and all other agreements on the rights and obligations of participants; information on quality standards or quality certificates (if any), prices, utilities and use instructions for goods sold; regulations on warranty, return or buy-back of goods sold.
b. Programs on training of participants, covering training contents; training duration; order and procedures for granting training certificates; duration and contents of periodical training courses for participants;
c. Operation rules containing guidance on transaction modes and regulations concerning multi-level sale;
d. Responsibilities of participants;
e. Economic benefits which participants may enjoy through activities of marketing or directly selling goods, as well as conditions for obtaining such economic benefits;
f. Conditions for termination of contracts by participants as well as rights and obligations arising from such contract termination;
g. Other matters stipulated by competent state agencies.
3. Apart from the responsibilities defined in Clause 2 of this Article, multi-level sale enterprises shall also have the following responsibilities:
a. To ensure truthfulness and accuracy of information supplied to participants;
b. To ensure quality of goods sold by mode of multi-level sale;
c. To settle complaints of participants and consumers;
d. To withhold and remit personal income tax amounts of participants into the state budget before paying commissions, bonuses or other economic benefits to participants;
e. To provide professional training in multi-level sale and law on multi-level sale to participants;
f. To manage participants through the system of multi-level sale network member cards made according to a form set by the Trade Ministry;
g. To notify participants of goods not to be bought back by enterprises before they buy such goods.
Article 7: Prohibited acts of multi-level sale enterprises
Multi-level sale enterprises are forbidden to perform the following acts:
1. Requesting want-to-be participants to make deposits in order to be entitled to participate in their respective multi-level sale networks.
2. Requesting want-to-be participants to buy an initial quantity of goods in order to be entitled to participate in their multi-level sale networks.
3. Requesting want-to-be participants to pay money or any charges for study courses, training courses, seminars, social activities or other similar activities in order to be entitled to participate in their respective multi-level sale networks, except for expenses for purchase of documents specified in Clause 2, Article 6 of this Decree.
4. Failing to commit to permit participants to return goods and receive back money amounts already remitted to enterprises according to the provisions of Article 11 of this Decree.
5. Obstructing participants in returning goods as a result of termination of contracts on participation in multi-level sale.
6. Permitting participants to receive commissions, bonuses or other economic into participating in multi-level sale.
7. Refusing to pay, without plausible reasons, commissions, bonuses or other economic benefits enjoyable by participants.
8. Supplying deceitful information on benefits from participation in the multi-level sale networks in order to entice other persons to participate in multi-level sale.
9. Supplying untruthful information on characteristics and utilities of goods in order to lure other persons into participating in multi-level sale.
Article 8: Responsibilities and prohibited acts of participants
1. When participating in multi-level sale activities, the participants shall have the following responsibilities:
a. To produce their multi-level sale network member cards before introducing goods or marketing for sale of goods;
b. To notify all contents specified in Clause 2, Article 6 of this Decree to other persons under their sponsorship for participation in multi-level sale networks;
c. To supply truthful and accurate information on type, quality, prices, and usage of goods for sale;
d. To comply with regulations in operation rules and sale programs of enterprises.
2. Participants are forbidden to take the following acts:
a. Requesting persons under their sponsorship for participation in multi-level sale networks to pay any charges for study course, training courses, seminars, social activities or other similar activities;
b. Supplying deceitful information on benefits from the participation in multi-level sale, untruthful information on characteristics and utilities of goods, activities of multi-level sale enterprises in order to entice other persons to participate in multi-level sale.
Article 9: Contracts on participation in multi-level sale
1. Multi-level sale enterprises must enter into written participation contracts with participants in their respective multi-level sale networks.
2. The Trade Ministry shall have to guide the basic contents of model contract for multi-level sale activities.
Article 10: Termination of contracts on participation in multi-level sale
1. Participants have the right to terminate participation contracts by sending written notices to multi-level sale enterprises at least 7 working days before terminating the contracts.
2. Multi-level sale enterprises have the right to terminate contracts with participants when the latter violate the provisions of Article 8 of this Decree and shall have to notify such in writing to the participants at least 7 working days before terminating contracts.
3. Within 15 working days after the termination of contracts, multi-level sale enterprises shall have the following responsibilities:
a. To buy back goods already sold to the participants according to the provisions of Article 11 of this Decree;
b. To pay the participants commissions, bonuses and economic benefits enjoyable by participants in the course of participating in the multi-level sale networks.
Article 11: Buying back goods from participants upon termination of multi-level sale participation contracts
1. Multi-level sale enterprises must buy back goods already sold to participants when such goods satisfy the following conditions:
a. They can be re-sold for their initial use purposes;
b. They are returned within 30 days after the participants receive them.
2. In cases where they must buy back goods under the provisions of Clause 1 of this Article, multi-level sale enterprises shall have to:
a. Refund the total money amount already paid by participants to receive such goods, if there is no ground for deduction under the provisions of Point b of this Clause;
b. In cases where enterprises must bear management and re-warehousing expenses as well as other administrative expenses, they shall have to refund a total sum which is nor smaller than 90% of the amount already paid by participants to receive such goods.
3. When refunding money according to the provisions of Clause 2 of this Article, multi-level sale enterprises may deduct commissions, bonuses and/or other economic benefits which have been enjoyed by participants form the receipt of such goods.
4. The provisions of Clauses 1 and 2 of this Article shall not apply to goods which are not subject to buy-back, including goods which are expired upon return, seasonal goods or goods for sale promotion.
Article 12: Responsibilities binding between multi-level sale enterprises and participants
1. Multi-level sale enterprises shall have to pay damages to consumers or participants in the following cases:
a. Participants cause damage to consumers or other participants while strictly observing operation rules and sale programs of enterprises;
b. Participants have not been supplied with adequate information on goods according to the provisions of Clause 2, Article 6 of this Decree.
2. Multi-level sale enterprises shall have to regularly supervise activities of participants in order to ensure that the latter strictly observe their operation rules and sale programs.
3. In cases where they fail to comply with the provisions of Article 8 of this Decree, thus causing damage to consumers or other participants, multi-level sale participants shall have to pay level sale participants shall have to pay compensations for such damage.
Article 13: Information on benefits from participation in multi-level sale
In cases where an individual participates in a multi-level sale network to introduce sale activities, the multi-level sale enterprise or the participant must clearly state his/her name, age, address, participation duration and profit earned in each period, certified by tax payment receipts issued by the tax office which collects tax from such individual.
Tìm kiếm
Nghị định 110/2005/NĐ-CP (Bản Word)