10. Can multi-level marketing businesses charge processing fees when participants apply for contract cancellation?
Related regulations allow a party to a contract to cancel the contract within a certain period after contract signature. The regulations are designed to give such a party the right to hesitate. Hence, when a party to a contract makes a request to cancel a contract, it is an exercise of the right to hesitate and the party is not responsible for any damage caused to the other party to the contract as a result. If the exercise of the right to hesitate is agreed upon in advance, paying a contract cancellation processing fee or other expenses to the other party to the contract is therefore inconsistent with the purpose of the right to hesitate. No participant contracts established by multi-level marketing businesses may include such or similar provisions.
Relevant article(s) of law: Multi-level Marketing Supervision Act, Article 20 to 24
Updated at：2016-02-22 16:43:23