On the Related Questions about the Definition of Multi-Level Selling in the Fair Trade Law

Abstract

“To Pay a certain amount of cost” is an essential condition for defining Multi-Level Selling in the Fair Trade Law, and this requirement has became a very important part in managing the Multi-Level Selling for the administration of the Fair Trade Commission. However, this condition might hurt joiner and also provide some vague area for avoiding the regulation from the administration of Fair Trade Commission. Hence, it is necessary to review and refine the definition of Multi-Level Selling.

This research intend to make a comparison of the meanings, cases and practical experiences of the laws about Multi-Level Selling for finding the incompleteness in the definition and providing some suggestions about potential amendment. In order to achieve this goal, we also make an analysis among the traditional multi-level direct selling business and other industries that also with similar pattern of bonus sharing.