2. As specified in Article 6 of the Multi-level Marketing Supervision Act, Multi-level marketing businesses are required to file with the Fair Trade Commission before starting operation. What information do they need to provide?
According to Article 6 of the Multi-level Marketing Supervision Act, each multi-level marketing business is required to submit the following documents and information when filing with the Fair Trade Commission before beginning operation:
- Basic information on the multi-level marketing business and its office location
- The sales system and requirements for people to become participants
- The contents of the contract to be signed with participants
- Items, quality, prices and sources of goods or services
- Proof of marketing approaches complying with related regulations or the permit from the competent authority of the industry if such marketing approaches are subject to certain regulations or require the permission of the competent authority of the industry before the promotion or sales of goods can be initiated
- The calculation standards and reasons for the depreciation of goods or services returned by participants according to the second section of Paragraph 3 of Article 21 or Article 24 of the Multi-level Marketing Supervision Act.
- Other information specified by the competent authority
In general, the Fair Trade Commission will notify businesses whose submitted information is incomplete to make corrections. Such businesses are required to provide needed information within a given period; otherwise, the filings are considered invalid. The Fair Trade Commission will reject the applications and order such businesses to file anew after preparing complete information. The Fair Trade Commission will list businesses failing to make corrections and having their applications rejected as primary targets of business inspections and will launch investigations if finding any violation of related regulations.
Relevant article(s) of law: Multi-level Marketing Supervision Act, Article 6
Updated at：2016-02-22 16:33:07