Chapter VII
STATE MANAGEMENT OF MULTI-LEVEL MARKETING
Article 54. Responsibility of Ministry of Industry and Trade
1. The Ministry of Industry and Trade shall assume responsibility before the Government for the exercise of governmental authority to manage MLM activities nationwide, including:
a) Issue, modify, renew, re-issue and revoke MLM registration certificates and give certifications of receipt of the documentation of notification of termination of MLM activities;
b) Collect, manage and use fees for processing of applications for the MLM registration certificate in accordance with applicable law regulations;
c) Give notification of issuance, modification, renewal and revocation of the MLM registration certificate, and certification of receipt of the documentation of notification of termination of MLM activities to Department of Industry and Trade of the province where the concerned MLM company is located;
d) Inspect MLM activities and take actions against violations within its competence;
dd) Instruct and cooperate with Provincial Departments of Industry and Trade to inspect and take actions against violations in MLM sector;
e) Report or request competent authorities to take actions against violations against regulations on management of the MLM;
g) Organize training programs for officials and public employees in charge of exercising state management of the MLM; disseminate laws on the MLM to enterprises and participants;
h) Formulate and request competent authorities to promulgate or amend legislative documents on the MLM management;
i) Fulfill other responsibilities as regulated in this Decree.
2. The Vietnam Competition Authority affiliated to the Ministry of Industry and Trade shall assist the Minister of Industry and Trade in exercising state management duties specified in Clause 1 of this Article.
3. The Market Surveillance Agency affiliated to the Ministry of Industry and Trade shall assist the Minister of Industry and Trade in exercising state management duties specified in Point d, Point e and Point g Clause 1 of this Article.
Article 55. Responsibility of ministries and ministerial-level agencies
1. Ministries and ministerial-level agencies shall, within the ambit of their assigned functions and powers, cooperate with the Ministry of Industry and Trade to perform the state management of the MLM.
2. The Ministry of Public Security shall:
a) Cooperate with the Ministry of Industry and Trade, the People’s Committees of provinces and central-affiliated cities, and relevant ministries and ministerial-level agencies to increase the efficiency of the state management of the MLM.
b) Prevent and combat crimes and violations against regulations on the MLM;
c) Receive and take actions against denunciation of crimes against regulations on the MLM; investigate crimes and perform other judicial duties as regulated.
3. The Ministry of Health shall:
a) Inspect and take actions against violations against regulations on business conditions for products sold through the MLM under its management as regulated;
b) Inspect and take actions against violations committed by MLM companies during the manufacturing, preparation, processing, storage, transport, import, export, and trading of foods, cosmetics and other products within its competence;
c) Inspect and take actions against violations against regulations on advertising, conferences, meetings, dissemination, and provision of information concerning cosmetics, functional foods and other products sold by MLM companies within its competence.
4. The Ministry of Finance shall:
a) Inspect MLM activities in accordance with regulations of the law on taxation;
b) Publish accurate information concerning results of inspection of MLM activities in a timely and objective manner.
5. The Ministry of Science and Technology shall inspect and take actions against violations committed by MLM companies against standards and regulations on measurement and quality of products as well as intellectual property within its competence.
6. The Ministry of Agriculture and Rural Development shall:
a) Inspect and take actions against violations committed by MLM companies during their manufacturing, trading and advertising of products within its competence;
b) Inspect and take actions against violations against regulations on business conditions for products sold through the MLM under its management as regulated.
7. The Ministry of Information and Communications shall:
a) Formulate and develop programs for dissemination of MLM activities and laws on the MLM on means of media for regulatory authorities, press agencies and enterprises;
b) Cooperate with press agencies in:
- Developing regular programs or specialized columns for disseminating laws on the MLM and warning people of disguised and illegal activities in the MLM;
- Reporting or providing accurate information concerning the status of MLM companies in a timely and objective manner.
8. The State Bank of Vietnam shall instruct credit institutions to comply with procedures for confirmation and management of compulsory deposits paid by MLM companies in accordance with regulations herein.
Article 56. Responsibility of people’s committees of provinces and central-affiliated cities
1. Each Provincial People’s Committee shall, within the ambit of its assigned functions and powers, perform state management of the MLM in such province, including:
a) Promulgate the mechanism for cooperation between local regulatory authorities in conducting inspections of the MLM in such province;
b) Issue and revoke the certificates of registration of MLM activities in a province, and certify any receipt of the documentation of notification of termination of MLM activities in a province;
c) Inspect the MLM activities;
d) Take actions, within its competence, or request competent authorities to take actions against violations against regulations on the MLM;
dd) Report or request competent authorities to take actions against violations against regulations on management of the MLM;
e) Organize training programs for officials and public employees in charge of exercising state management of the MLM; disseminate laws on the MLM to enterprises and participants;
g) Submit annual reports or unscheduled reports to the Ministry of Industry and Trade on the MLM activities performed in such province;
h) Fulfill other responsibilities as regulated in this Decree.
2. The Provincial Department of Industry and Trade shall assist the People’s Committee of such province to perform duties specified in Clause 1 of this Article.
3. Local market surveillance forces shall assist the People’s Committee of such province and the Market Surveillance Agency in fulfilling duties specified in Point c, Point d, Point dd and Point e Clause 1 of this Article.
Article 57. Actions against violations committed by MLM companies and participants
1. Any MLM companies or participants that commit violations against regulations herein shall, subject to the nature and severity of each violation, face penalties in accordance with the law on competition and the law on penalties for administrative violations, or face a criminal prosecution as regulated by law.
2. Any MLM companies or participants that commit violations against regulations herein and cause damage to other organizations and/or individuals must make compensation for such damage as regulated by law.
3. Imposition of penalties for violations against regulations on the MLM must be publicly announced.
Article 58. Power and procedures for imposing penalties for violations
Procedures and power to impose penalties for violations against regulations herein shall be performed in accordance with regulations of the law on penalties for violations.
Tìm kiếm
Nghị định 40/2018/NĐ-CP về quản lý hoạt động kinh doanh theo phương thức đa cấp (Bản Word)
Nghị định 40/2018/NĐ-CP về quản lý hoạt động kinh doanh theo phương thức đa cấp (Bản Pdf)
