6. What information should a MLM enterprise disclose to prospective participants pursuant to Article 10 of the Multi-level Marketing Supervision Act?
- When a MLM enterprise recruits participants and a potential participant indicates willingness to take part in a sales organization or sales plan, the MLM enterprise shall truthfully disclose the following particulars:
- paid-up capital and gross business volume of the multi-level marketing enterprise;
- multi-level marketing plan, and conditions of participation;
- laws and regulations relevant to multi-level marketing;
- obligations and responsibilities of a participant;
- conditions of withdrawal by a participant from the organization or plan, and rights and obligations arising from the withdrawal;
- matters relevant to the goods or services;
- the calculation methods, criterion, and reasons, when multi-levels sale enterprises deduct the devaluation amount from the price in repurchasing the goods or services pursuant to the later sentence of Articles 2(3) or 24 of the Act;
- such other matters as may be required by the competent authority.
- Further, when a participant introduces another person to participate in the organization or plan, such participant shall make no false or misleading presentations on items listed in the preceding paragraph
Relevant article(s) of law: Multi-level Marketing Supervision Act, Article 10, 14, 21 and 24
Updated at：2016-02-22 16:38:44