4. Does a MLM enterprise need to provide an additional report to the Fair Trade Commission each time there is a change in the previous report's contents?
- In the course of its sales activities, a MLM enterprise may have occasion to adjust its operating plan, transaction guidelines, or develop new goods. An enterprise may even need to revise its bonus system or the participation contract that it executed with participants should its financial situation or operating costs so mandate. When a MLM enterprise makes amendments to previously reported particulars, it shall report them to the Fair Trade Commission before implementation. The Commission has imposed this requirement to ensure that MLM operations operate entirely under the supervision of the competent authority.
- When an enterprise amends its company license, registers as a profit-seeking enterprise, or changes basic information for related enterprises, it may take some time to complete these processes. For this reason, the Multi-level Marketing Supervision Act permits enterprises to report these particulars within 15 days after the change. Unit costs of manufacturing (and materials and labor) fluctuate with the volume of shipments, prices, terms and conditions, and credit.
Relevant article(s) of law: Multi-level Marketing Supervision Act, Article 7
Updated at：2016-02-22 16:34:58