Page 39 - 2024 ANNUAL REPORT FAIR TRADE COMMISSION
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5. Building a decent multi-level marketing management environment
Multi-level marketing is an important commercial activity in the country with over 3.7 million people working in the industry. The annual sales exceed NT$100 billion and are beneficial to the employed population and the development of the overall economy. Being the competent authority for multi-level marketing, the FTC actively makes efforts to investigate illegal multi-level marketing practices to protect the interests of participants and legitimate multi-level marketing businesses. At the same time, the FTC continues to review registered information, perform business inspections, promote multi-level marketing regulations, push concerned businesses to enhance self-discipline, conduct multi-level marketing management surveys, and assist the Multi-level Marketing Protection Foundation in its operation to perfect the multi-level marketing administration system.
(1) Investigating illegal activities to maintain multi-level marketing order
To protect multi-level marketing order and participant interests, besides cracking down on illegal multi-level marketing practices, the FTC also works with judicial agencies to investigate unlawful multi-level marketing activities and illegal fundraising and cooperates with health agencies to work on cases involving multi-level marketing businesses and participants the identity of being a multi-level marketing business when recruiting participants, illegitimately impeding participants from returning goods and deducting commissions or bonuses.
The FTC also performed onsite business inspections on multi-level marketing operations that had not been inspected in the 3 recent years, had tax information anomalies, had been reported by consumers a number of times, had had registration applications rejected for not health regulations more often than others. In 2024, the FTC inspected 52 businesses and counseling, the FTC also handled those businesses that failed to comply with regulations according to law.
(2) Business overview survey to grasp industry trends
In response to the growth and diversity of the multi-level marketing market and to make the multi-level marketing administration more suited to the needs of the industry, the FTC surveys the management development of multi-level marketing businesses on an annual basis
Important Achievements in 2024
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