9. Can participants withdraw from multi-level marketing schemes? Can they return the goods they have purchased and get refunds? Are there time limits? Do such goods have to be intact?
- According to Articles 20 and 21 of the Multi-level Marketing Supervision Act, participants of multi-level marketing businesses have the right to cancel contracts, terminate contracts, return goods and get refunds for the goods returned.
- As for time limits, it is specified in Articles 20 and 21 that participants may notify their multi-level marketing businesses in writing within 30 days after contract signature that they want to cancel contracts and the multi-level marketing businesses concerned are obligated to accept requests from such participants to return goods within 30 days after the contracts take effect and give back the purchasing funds for all the goods returned as well as other expenses paid when the participants became members. Moreover, participants may also issue contract termination notices in writing after the aforesaid hesitation period (within 30 days after contract signature) to withdraw from multi-level marketing schemes or organizations. Then, within 30 days of contract termination, the multi-level marketing businesses concerned are required to buy back the goods in the possession of such participants at 90% of the original purchasing prices. However, if the goods have been in the possession of participants for more than six months since the day they were collectible, they may not be returned.
- As for whether the goods returned must be intact, this is subject to agreements established between multi-level marketing businesses and participants in accordance with the characteristics, usability and marketability of the goods returned under the premise that such agreements are reasonable and not in violation of Articles 20 and 21 of the Multi-level Marketing Supervision Act and the policy conventionally adopted for the return of similar goods in the market.
Relevant article(s) of law: Multi-level Marketing Supervision Act, Article 20 and 21
Updated at：2016-02-22 16:41:59