Chapter IV
MULTI-LEVEL MARKETING ACTIVITIES
Article 22. Responsibilities of a multi-level marketing business
1. To post up at its head office and provide persons wishing to participate in its multi-level marketing network with documents related to its operations and goods traded by the mode of multi-level marketing.
2. To frequently supervise operations of multi-level marketing participants to ensure that they strictly comply with its rules of operation and bonus payment program.
3. To take responsibility for multi-level marketing participants’ multi- level marketing activities which:
a/ Are carried out at its head office, branch, representative office or business place;
b/ Are carried out outside its head office, branch, representative office or business place, unless these activities are not related to the business.
4. To ensure the truthfulness and accuracy of the information provided to multi-level marketing participants.
5. To ensure the quality and warranty and post-sale services (if any) for goods sold by the mode of multi-level marketing.
6. To settle complaints of multi-level marketing participants and consumers.
7. To withhold personal income tax of multi-level marketing participants for remittance into the state budget before paying commissions, bonuses or other economic benefits to multi-level marketing participants.
8. To manage multi-level marketing participants through the system of member cards provided in Article 21 of this Decree.
9. To notify multi-level marketing participants of goods which are not entitled to the business’ repurchase before they buy goods.
10. Other responsibilities as prescribed by law.
Article 23. Responsibilities of a multi-level marketing participant
1. To produce his/her member card before introducing or marketing goods for sale.
2. To fully provide information on the business and its goods traded by the mode of multi-level marketing when sponsoring another person to participate in the multi-level marketing network.
3. To provide truthful and accurate information on goods on sale.
4. To comply with rules of operation and bonus payment program of the business.
5. In case of failing to comply with Clause 2, Article 5 of this Decree and Clauses 1, 2, 3 and 4 of this Article and causing damage to consumers or other multi-level marketing participants, to pay compensation for such damage in accordance with law.
6. Other responsibilities as prescribed by law.
Article 24. Multi-level marketing contracts
1. A multi-level marketing business shall conclude a written multi-level marketing contract with a multi-level marketing participant.
2. A multi-level marketing contract must contain the following basic information:
a/ Name, head office address and at-law representative of the multi-level marketing business;
b/ Full name, permanent residence registration (or residence registration, for a foreigner), place of temporary residence registration and identity card number (or passport number, for a foreigner) of the multi-level marketing participant; work permit number, for a foreigner;
c/ Name, uses, use methods, sale price, conditions and scope of warranty (if any), policies for change and repurchase of goods;
d/ Methods of calculating commissions, bonuses or other economic benefits to be received by the multi-level marketing participant from his/her sale activities and sale network he/she develops;
dd/ The multi-level marketing business’ liability for multi-level marketing activities of the multi-level marketing participant in the payment of compensations for damage to consumers or to the multi-level marketing participant;
e/ Cases of termination, extension and liquidation of the multi-level marketing contract;
g/ Mechanism for settlement of contract disputes.
Article 25. Termination of multi-level marketing contracts
1. A multi-level marketing participant may terminate a multi-level marketing contract by sending a written notice to the multi-level marketing business at least 10 working days before terminating that contract.
2. A multi-level marketing business may terminate a multi-level marketing contract with a multi-level marketing participant when this person fails to comply with Clause 2, Article 5, and Article 23 of this Decree, and shall notify such in writing to the multi-level marketing participant at least 10 working days before terminating that contract.
3. Within 30 working days after terminating a contract, a multi-level marketing business shall pay a multi-level marketing participant commissions, bonuses and other economic benefit receivable by this participant in the course of participating in the multi-level marketing network.
Article 26. Repurchase of goods from multi-level marketing participants
1. When so requested by a multi-level marketing participant, a multi- level marketing business shall repurchase goods sold to that participant, including goods sold under sales promotion programs.
2. Conditions for repurchase of goods from a multi-level marketing participant:
a/ The goods’ use period has not expired;
b/ The goods’ packaging, stamp and label remain intact;
c/ The request for repurchase of foods is made within 30 days after the multi-level marketing participant receives such goods.
3. In case of repurchasing goods under Clause 1 of this Article, a multi- level marketing business shall:
a/ Refund the total amount paid by the multi-level marketing participant to receive such goods if there is no basis for deduction under Point b of this Clause;
b/ Refund the total amount after deducting expenses for management and re-warehousing and other administrative expenses, which, however, must not be lower than 90% of the amount paid by the multi-level marketing participant to receive such goods.
4. When refunding under Clause 3 of this Article, a multi-level marketing business may deduct commissions, bonuses and other economic benefits already received by the multi-level marketing participant under Clauses 1, 2, 3 and 4 of this Article.
Article 27. Provisions on payment of commissions, bonuses and other economic benefits
1. A multi-level marketing business shall pay commissions, bonuses and other economic benefits to a multi-level marketing participant under its bonus payment program registered with a competent agency upon registration of multi-level marketing activities.
2. The total value of commissions, bonuses and other economic benefits paid to a multi-level marketing participant in a year equivalent in currency must not exceed 40% of the multi-level marketing business’ sales from multi- level marketing in that year.
Article 28. Reports of multi-level marketing businesses
1. Every 6 months, a multi-level marketing business shall report on its multi-level marketing activities to the Ministry of Industry and Trade and the provincial-level Industry and Trade Department of the locality where it carries out multi-level marketing activities.
2. When necessary, a multi-level marketing business shall report at the request of a competent state management agency.
3. The Ministry of Industry and Trade shall provide the contents, order and procedures for periodical reporting provided in Clause 1 of this Article.
Tìm kiếm
Nghị định 42/2014/NĐ-CP (Bản Word)
Nghị định 42/2014/NĐ-CP (Bản Pdf)