THE GOVERNMENT
-------
|
THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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|
No. 42/2014/ND-CP
|
Hanoi, May 14,
2014
|
DECREE
ON
MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES
Pursuant to the December 25, 2001 Law on Organization
of the Government;
Pursuant to the December 3, 2004 Competition
Law; At the proposal of the Minister of Industry and Trade,
The Government promulgates the Decree on
management of multi-level marketing activities.
Chapter
I
GENERAL PROVISIONS
Article 1. Scope
of regulation
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Article 2. Subjects of application
This Decree applies to multi-level
marketing businesses and
participants
and
other agencies, organizations and persons involved in
multi-level marketing activities.
Article 3. Interpretation of terms
In this Decree, the terms and phrases below are
construed as follows:
1. Multi-level marketing business means an
enterprise which is engaged in retail activities by the mode of multi-level
marketing.
2. Multi-level marketing means a form of business
run through a sale network of participants at different levels and branches,
which allows participants to enjoy commissions, bonuses and other economic
benefits from their sale activities and the network developed by themselves.
3. Multi-level marketing participant means a person
who enters into a multi-level marketing contract with a multi-level marketing
business.
4. Multi-level marketing contract means an
agreement which establishes the relationship in multi-level marketing
activities between a person wishing to participate in multi-level marketing and
a multi-level marketing business.
5. Commissions, bonuses and other economic benefits
mean benefits in any form paid by a multi-level marketing business to a
multi-level marketing participant.
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7. Bonus payment program means a system used to
calculate commissions, bonuses and other economic benefits generated mostly
from incomes from sale activities to be enjoyed by multi-level marketing
participants.
8. Basic training program means a program developed
by a multi-level marketing business to train multi-level marketing
participants, which covers the following contents:
a/ Laws related to multi-level marketing activities
of the business;
b/ Information on goods traded by the mode of
multi-level marketing;
c/ Information on, and rules of operation and bonus
payment program of, the business;
d/ Basic skills to carry out multi-level marketing
activities.
9. Multi-level marketing position means the
position of a multi-level marketing participant ranked by the multi-level
marketing business in its bonus payment program.
10. Pyramid selling means a form of multi-level
marketing business under which incomes of participants are generated mostly
from recruitment of new participants, extension of contracts of existing
participants; charges, deposits or investment amounts of participants in the
network.
Article 4. Objects of multi-level marketing
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2. The following goods must not be traded by the
mode of multi-level marketing:
a/ Goods on the list of goods banned from trading
and the list of goods restricted from trading, goods currently subject to
urgent measures of forcible recall, circulation ban or suspension as prescribed
by law;
b/ Medicines; medical equipment; veterinary drugs
(including aquatic veterinary drugs), plant protection drugs; chemicals,
insecticidal and germicidal preparations for domestic and medical use;
dangerous chemicals and products containing dangerous chemicals as prescribed
by law.
3. All types of service or forms of business other
than goods trading must not be traded by the mode of multi-level marketing,
unless permitted by law.
Article 5. Prohibited acts in multi-level
marketing
1. Multi-level marketing businesses are prohibited
to commit the following acts:
a/ Requesting persons wishing to participate in
multi-level marketing to deposit or pay a certain sum of money in any form in
order to have the right to participate in a multi-level marketing network;
b/ Requesting persons wishing to participate in
multi-level marketing to buy a certain quantity of goods in any form in order
to have the right to participate in a multi-level marketing network;
c/ Requesting persons wishing to participate in
multi-level marketing to pay an additional sum of money in any forms to have
the right to maintain, develop or expand their multi-level marketing networks;
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dd/ Permitting multi-level marketing participants
to receive commissions, bonuses or other economic benefits from luring other
persons into participating in multi-level marketing;
e/ Refusing to pay, without plausible reasons,
commissions, bonuses or other economic benefits to be enjoyed by multi-level
marketing participants;
g/ Requesting multi-level marketing participants to
recruit, or expand multi-level marketing contracts with, a certain number of
multi-level marketing participants in order to enjoy commissions, bonuses or
other economic benefits;
h/ Requesting participants to conferences, seminars
or training courses on one of the contents specified in Clause 8, Article 3 of
this Decree to pay money or charges in any forms other than reasonable expenses
for purchase of training documents;
i/ Forcing multi-level marketing participants to
attend conferences, seminars or training courses on issues other than those
specified in Clause 8, Article 3 of this Decree;
k/ Requesting participants to conferences, seminars
or training courses on issues other than those specified in Clause 8, Article 3
of this Decree to pay money or charges higher than reasonable expenses for
those activities;
l/ Collecting charges in any forms for the grant or
renewal of member cards provided in Clauses 1 and 3, Article 21 of this Decree;
m/ Failing to commit to permitting multi-level
marketing participants to return goods and receive back amounts already
remitted to businesses under Article 26 of this Decree;
n/ Preventing multi-level marketing participants
from returning goods under Article 26 of this Decree;
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p/ Maintaining more than one multi-level marketing
position, multi- level marketing contract, multi-level marketing identification
number or other similar forms for the same multi-level marketing participant;
q/ Running business by the mode of pyramid selling;
r/ Buying, selling or transferring networks of
multi-level marketing participants to other businesses unless in case of
corporate acquisition, consolidation or merger;
s/ Requesting or instigating multi-level marketing
participants to commit the prohibited acts specified in Clause 2 of this
Article.
2. Multi-level marketing participants are
prohibited to commit the following acts:
a/ Requesting persons wishing to participate in
multi-level marketing to pay or deposit a certain sum of money or buy a certain
quantity of goods in any forms in order to have the right to participate in a
multi-level marketing network;
b/ Supplying false or misleading information on
benefits from participation in multi-level marketing, or properties and
utilities of goods, or activities of multi-level marketing businesses in order
to lure other persons into participating in multi-level marketing;
c/ Holding seminars, client conferences, product
introduction seminars or training without being authorized in writing by
multi-level marketing businesses;
d/ Dragging, inducing or buying off multi-level
marketing participants of other businesses to participate in the sale networks
of enterprises in which they participate;
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Chapter
II
ORDER AND PROCEDURES FOR
REGISTRATION, SUSPENSION AND TERMINATION OF MULTI-LEVEL MARKETING ACTIVITIES
Article 6. Registration of multi-level marketing
activities
Multi-level marketing activities must be registered in accordance with this
Decree.
Article 7. Conditions for registration of
multi-level marketing activities
An organization registering multi-level marketing activities
must satisfy the following conditions:
1. It is an enterprise established in Vietnam in
accordance with law which has registered the retail business by the mode of
multi-level marketing.
2. Its legal capital complies with Article 8 of
this Decree.
3. Goods traded by the mode of multi-level
marketing conform with the enterprise registration certificate or the
investment certificate.
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5. It opens an escrow account at a commercial bank
operating in Vietnam under Article 29 of this Decree.
6. It has rules of operation, bonus payment program
and basic training program in accordance with law.
7. Partnership members, for partnerships; private
enterprise owners; members, for limited liability companies; founding
shareholders, for joint stock companies; and at-law representatives, for
limited liability and joint stock companies, must be those who have not held
one of the above positions at a multi-level marketing business which has its
multi-level marketing registration certificate under Points b and c, Clause 1,
Article 14 of this Decree.
Article 8.
Legal capital
The legal capital of a business registering retail
by the mode of multi - level marketing is VND 10 billion.
Article 9.
Multi-level marketing registration certificates
1. A multi-level marketing registration certificate
is valid for 5 years from the date of its signing.
2. A multi-level marketing registration certificate
shall be made in 2 copies, 1 to be given to the business registering
multi-level marketing activities and 1 to be kept at the agency granting such
certificate.
3. The Ministry of Industry and Trade shall provide
the form of the multi-level marketing registration certificate and the dossier,
order and procedures for grant of multi-level marketing registration
certificates.
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1. When there is a change related to the contents
of the dossier of application for a multi-level marketing registration
certificate, a multi-level marketing business shall carry out procedures to
modify and supplement its multi-level marketing registration certificate.
2. The Ministry of Industry and Trade shall provide
the dossier, order and procedures for modification and supplementation of
multi-level marketing registration certificates.
Article
11. Re-grant of multi-level marketing registration certificates
1. When a multi-level marketing registration
certificate is lost, torn or destroyed, a multi-level marketing business shall
carry out procedures for re- grant of the multi-level marketing registration
certificate immediately after the incident occurs.
2. The Ministry of Industry and Trade shall provide
the dossier, order and procedures for re-grant of multi-level marketing
registration certificates.
Article
12. Extension of multi-level marketing registration certificates
1. A multi-level marketing registration certificate may be
extended many times, with each extension lasting 5 years.
2. Three months before a multi-level marketing registration certificate expires, a multi-level marketing business shall carry out procedures for
extension of its
certificate.
3. A multi-level marketing business may have its multi-level marketing registration certificate extended when it satisfies the conditions specified
in Article
7 of this Decree.
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Article
13. Charges and fees for management of multi-level marketing activities
1. The charges and fees for management of multi-level
marketing activities include charges and fees for the grant, modification,
supplementation, re-grant and extension of multi-level marketing registration
certificates.
2. The rates and collection, remittance, management
and use of charges and fees for management of multi-level marketing activities
must comply with law.
Article 14. Revocation of
multi-level marketing registration certificates
1. The agency granting a multi-level marketing
registration certificate shall revoke that certificate in the following cases:
a/ The enterprise registration certificate or
investment certificate is revoked or expires;
b/ The dossier of application for the multi-level
marketing registration certificate contains untruthful information;
c/ The business is fined for an act specified in
Clause 1, Article 5 of this Decree when organizing multi-level marketing
activities as prescribed by law;
d/ The business fails to carry out multi-level
marketing activities for 12 consecutive months after obtaining its multi-level
marketing registration certificate;
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e/ The business suspends multi-level marketing
activities for more than 12 consecutive months;
g/ The business is dissolved or falls bankrupt in
accordance with law.
2. The agency granting a multi-level marketing
registration certificate to a business will not consider granting another
multi-level marketing registration certificate to that business within 3 years
from the date that business has its multi-level marketing registration
certificate revoked under Point b or c, Clause 1 of this Article.
3. The Ministry of Industry and Trade shall provide
the order and procedures for revocation of multi-level marketing registration
certificates.
Article 15. Suspension of
multi-level marketing activities
1. A multi-level marketing business may suspend its
multi-level marketing activities for no more than 12 consecutive months.
2. When suspending its multi-level marketing
activities, a business shall:
a/ Comply with regulations on suspension of
business activities in accordance with the law on enterprises;
b/ Notify in writing to the Ministry of Industry
and Trade, the provincial-level Industry and Trade Department of the locality
where the business carries out multi-level marketing activities and multi-level
marketing participants, and post up such suspension at its head office 30
working days before suspending multi-level marketing activities;
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3. When resuming multi-level marketing activities
after suspension, the business shall notify such in writing to the Ministry of
Industry and Trade and provincial-level Industry and Trade Department of the
locality where it carries out multi-level marketing activities.
4. The Ministry of Industry and Trade shall provide
the dossier, order and procedures for notification of suspension and resumption
of multi-level marketing activities.
Article 16. Termination of
multi-level marketing activities
1. Cases of termination of multi-level marketing
activities:
a/ The multi-level marketing registration
certificate expires;
b/ The business voluntarily terminates multi-level marketing
activities;
c/ The multi-level marketing registration
certificate is revoked by a competent agency under Article 14 of this Decree.
2. When terminating its multi-level marketing
activities, a business shall:
a/ Notify such in writing to the Ministry of
Industry and Trade, the provincial-level Industry and Trade Department of the
locality where the business carries out multi-level marketing activities and
multi-level marketing participants, and post up such termination at its head
office;
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c/ Have other obligations as prescribed by law.
3. The Ministry of Industry and Trade shall provide
the dossier, order and procedures for termination of multi-level marketing
activities.
Article 17. Notification of multi-level marketing
activities
1. Before organizing multi-level marketing
activities in a province or centrally run city, a multi-level marketing
business shall send a notification dossier to the provincial-level Industry and
Trade Department of that locality.
2. A multi-level marketing business may organize
multi-level marketing activities in a province or centrally run city only after
the provincial-level Industry and Trade Department of that locality certifies
in writing its receipt of the notification dossier.
3. The Ministry of Industry and Trade shall provide
the dossier, order and procedures for notification and certification of
notification of multi-level marketing activities.
Article 18. Notification of organization of
conferences, seminars and training
1. A multi-level marketing business shall notify
to
the provincial-level Industry and Trade Department of the locality where a conference, seminar or training is
held when that event covers one
of the
following contents:
a/ Laws relevant to multi-level marketing activities of
the business;
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c/ Information
on, and rules of operation and
the bonus
payment
program of, the
multi-level marketing
business;
d/ Skills necessary for multi-level marketing activities.
2. A multi-level marketing business may organize the
activities
specified in Clause 1 of this Article only
after obtaining written certification of receipt
of its complete and valid notification dossier by the provincial-level Industry and Trade Department of the
locality concerned.
3. A multi-level marketing business shall notify
its
organization of a
conference, seminar or training provided in Clause
1 of this Article in case
of authorizing the implementation of
this activity.
4. Clause 1 of this Article does not apply to a multi-level marketing business which organizes a conference, seminar
or training in its head office,
branch, representative
office
or business place.
5. The Ministry of Industry and Trade shall provide the dossier,
order and procedures for
notification and certification
of notification
of organization of
conferences, seminars
and
training.
Chapter
III
RECRUITMENT,
TRAINING AND MANAGEMENT OF MULTI-LEVEL MARKETING PARTICIPANTS
Article
19. Conditions on multi-level marketing participants
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1. He/she is serving an imprisonment sentence or
has previous convictions for counterfeit goods production and trading,
deceitful advertising, illegal business, tax evasion, deceit of clients,
swindling for appropriation of assets, abuse of trust for appropriation of
assets or illegal seizure of assets.
2. He/she is a foreigner who has no permit of a
competent agency to work in Vietnam.
Article
20. Training of multi-level marketing participants
1. After signing
a multi-level marketing
contract, a multi-level
marketing business shall train and grant a certificate
according to the form
provided by the Ministry
of
Industry and Trade to the multi-level marketing
participant after this person completes the basic training program
provided in
Clause 8, Article 3 of this Decree.
Only those obtaining a trainer certificate according to the form provided by the Ministry of Industry
and
Trade may train multi-level marketing participants.
2. Where there is a change related to the contents specified in Clause 8,
Article 3 of this Decree, a multi-level marketing business shall train or notify
multi-level marketing participants of such change in accordance with regulations of
the Ministry of Industry and Trade.
3. The Ministry
of
Industry and Trade
shall provide contents of
training
for trainers provided in Clause 1 of
this Article.
Article
21. Member cards
1. After organizing training under Clause 1, Article 20 of this Decree, a multi-level marketing business shall grant trained multi-level
marketing participants a member card according to the form
provided by the Ministry
of Industry and Trade.
2. A multi-level marketing participant may carry out multi-level marketing activities
only
after obtaining a
member card.
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a/ The card
is torn, rumpled or
lost;
b/ There is a change in information in the form of member card according
to
regulations.
4. A multi-level marketing business shall withdraw
member cards when
terminating multi-level marketing contracts.
Chapter
IV
MULTI-LEVEL
MARKETING ACTIVITIES
Article
22. Responsibilities of a multi-level marketing business
1. To post up
at its head office and
provide
persons
wishing
to participate in its multi-level marketing network with documents related to its operations and goods traded by the
mode
of multi-level marketing.
2. To frequently
supervise operations of multi-level marketing
participants to ensure that they
strictly comply
with its rules of operation and bonus
payment program.
3. To take responsibility
for
multi-level marketing participants’ multi- level marketing activities which:
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b/ Are carried out outside its
head
office, branch, representative office or
business place, unless these activities
are not related to the business.
4. To ensure the truthfulness and accuracy of the information provided
to
multi-level marketing participants.
5. To ensure the quality
and
warranty and post-sale services (if any) for goods
sold
by the mode of
multi-level marketing.
6. To settle complaints of multi-level marketing participants
and consumers.
7. To withhold personal income
tax
of multi-level marketing participants
for
remittance into the state budget before paying commissions, bonuses or
other economic benefits
to
multi-level marketing participants.
8. To manage multi-level marketing participants through the system
of member
cards provided in Article 21 of this
Decree.
9. To notify multi-level marketing participants of goods which are not
entitled to the business’ repurchase
before
they
buy goods.
10. Other responsibilities
as prescribed by law.
Article
23. Responsibilities of a multi-level marketing participant
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2. To fully provide information on the business and its goods traded by the mode of multi-level marketing when sponsoring another person to participate
in the multi-level marketing network.
3. To provide
truthful and accurate
information on goods
on
sale.
4. To comply with rules of operation and bonus payment program of the
business.
5. In case of failing to comply with Clause 2, Article 5 of this Decree and Clauses 1, 2, 3 and 4 of this Article and causing damage to consumers or other
multi-level marketing
participants,
to pay
compensation for
such damage in accordance
with law.
6. Other responsibilities
as prescribed by law.
Article
24. Multi-level marketing contracts
1. A multi-level marketing business shall conclude a written multi-level
marketing contract with a multi-level marketing participant.
2. A multi-level marketing contract must contain the following basic information:
a/ Name, head office address and at-law
representative of the multi-level marketing business;
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c/ Name, uses, use methods, sale price, conditions and scope of warranty
(if any), policies for
change
and
repurchase of goods;
d/ Methods of calculating commissions, bonuses or other
economic benefits to be received by the multi-level marketing participant from
his/her sale activities and sale
network he/she
develops;
dd/ The multi-level
marketing business’ liability for
multi-level marketing activities
of the
multi-level marketing participant in the payment of
compensations for damage to consumers or to the
multi-level marketing participant;
e/ Cases of termination,
extension and liquidation of the multi-level marketing contract;
g/ Mechanism for
settlement of contract disputes.
Article
25. Termination of multi-level marketing contracts
1. A multi-level marketing participant may terminate a multi-level
marketing contract by sending a written notice to the multi-level marketing business at least 10 working days
before
terminating that contract.
2. A multi-level marketing business may terminate a multi-level
marketing contract with a multi-level marketing participant when this person fails to comply
with Clause 2, Article 5, and Article 23 of this Decree,
and shall notify
such
in writing to the multi-level marketing participant at least 10
working days before terminating that contract.
3. Within 30 working days after terminating a contract, a multi-level marketing
business shall
pay a multi-level marketing
participant
commissions,
bonuses and other economic benefit receivable by this
participant
in the
course
of participating in
the multi-level
marketing network.
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1. When so requested by a multi-level marketing participant, a multi- level marketing business shall repurchase goods
sold to that participant,
including goods sold under sales promotion programs.
2. Conditions for repurchase
of
goods from a multi-level marketing
participant:
a/ The goods’ use
period has not expired;
b/ The
goods’ packaging, stamp and label remain intact;
c/ The request for repurchase of foods is made within 30 days after the
multi-level marketing participant receives such goods.
3. In case of repurchasing goods under Clause 1 of this Article, a multi-
level marketing business
shall:
a/ Refund the total amount paid by
the
multi-level marketing participant to receive such goods if there is no basis for deduction under Point b of
this Clause;
b/ Refund the total amount after deducting expenses for management and re-warehousing and other administrative expenses, which, however, must not be lower than 90% of the amount paid by the multi-level marketing
participant to receive such goods.
4. When refunding
under Clause 3 of this
Article, a multi-level
marketing business may deduct commissions,
bonuses and other economic
benefits already received
by the
multi-level marketing
participant
under Clauses 1, 2, 3 and 4 of
this Article.
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1. A multi-level marketing business shall pay
commissions,
bonuses and other economic benefits to a multi-level marketing participant under its
bonus payment program registered with a competent agency upon registration of
multi-level marketing activities.
2. The total value of
commissions, bonuses and other economic
benefits paid to a
multi-level marketing participant in a year
equivalent in currency
must not exceed 40% of the multi-level marketing business’
sales from multi-
level marketing in that year.
Article
28. Reports of multi-level marketing businesses
1. Every
6 months, a multi-level marketing business shall report on its
multi-level marketing activities to the Ministry of Industry and Trade and the provincial-level Industry
and Trade Department
of the
locality
where
it carries out multi-level marketing activities.
2. When necessary, a multi-level marketing business shall report at the
request of a competent state management agency.
3. The Ministry
of Industry and Trade shall provide the contents,
order
and
procedures for periodical reporting provided in Clause 1 of
this Article.
Chapter
V
ESCROW
Article
29. Escrow money
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2. Escrow
is an amount which
secures
the multi-level
marketing business’ fulfillment of its obligations toward multi-level marketing participants when the business terminates its multi-level
marketing activities, except the
case provided in Clause
1, Article 16 of this
Decree.
3. The escrow account shall be blocked by the bank throughout the
operation of a business and may be withdrawn or used only
when there is a
written approval of the agency
granting the multi-level marketing registration certificate, except the
case provided in Clause
1,
Article 30 of this
Decree.
4. When a bank where a business makes escrow allows the withdrawal
or use of the business’
escrow amount without written approval of the
agency
granting the multi-level marketing registration certificate, it shall be handled
in
accordance with the laws on banking operations
and
on credit institutions.
5. A multi-level marketing business may enjoy interests from its escrow amount under
agreement with the
bank concerned.
6. Where there is a change
related to the
basic
contents of the written certification of escrow, a multi-level marketing business shall change such
certification and notify such to the agency granting the multi-level marketing registration certificate.
7. The Ministry of Industry and Trade shall provide basic contents of the written certification of
escrow.
Article
30. Withdrawal of escrow amounts
1. When the
multi-level marketing
registration certificate
granting
agency
refuses to grant a multi-level marketing registration certificate to a business, this business may
produce this agency’s written refusal to the
bank
where
it
makes escrow to carry out procedures to withdraw
its escrow money.
2. After terminating multi-level marketing activities
under Clause 1,
Article 16
of this Decree
and having fulfilled its
multi-level marketing- related obligations toward multi-level marketing participants,
a multi-level
marketing
business may carry out procedures to withdraw
its escrow money.
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Article
31. Use of escrow money
1. An escrow amount may be used when the following
conditions are met:
a/ The multi-level marketing business terminates its
multi-level marketing activities under Clause 1, Article 16 of this Decree;
b/ The multi-level marketing business fails to
fully perform multi-level marketing-related activities toward multi-level
marketing participants and there is a competent agency’s legally effective
decision or judgment on the settlement of disputes related to those obligations
between the multi -level marketing business and a multi-level marketing
participant.
2. The Ministry of Industry and Trade shall provide
the order and procedures for use of escrow money.
Chapter
VI
SUPERVISION AND
MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES
Article
32. Responsibilities of the Ministry of Industry and Trade
1. The Ministry of Industry and Trade shall take responsibility before the
Government for
performing
the state management of
multi-level marketing activities
nationwide.
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a/ Grant, modification, supplementation, extension, re-grant
and revocation of multi-level marketing registration certificates;
b/ Collection, management and use of charges and fees for
the grant, modification, supplementation, extension and
re-grant of
multi-level marketing registration certificates
in
accordance with law;
c/ Notification of the grant, modification, supplementation, extension and revocation of multi-level marketing registration
certificates to provincial- level Industry and Trade Departments of localities where businesses organize multi-level marketing activities;
d/ Preservation of dossiers of application for multi-level marketing
registration certificates;
dd/ Provision of guidance to and coordination with provincial-level Industry
and
Trade Departments and other competent state agencies in the
examination and supervision of multi-level marketing activities;
e/ Direct examination and supervision of multi-level marketing activities
when necessary; settlement according to competence or notification
and forwarding to competent agencies to handle
violations of the law
on management of multi-level marketing activities;
g/ Elaboration and submission to competent authorities for
promulgation or revision of legal documents related to the assurance of order in the organization of multi-level
marketing activities, protection of interests of multi-level marketing participants and consumers and maintenance of socio-
economic stability;
h/ Performance of
other responsibilities in accordance
with this Decree.
Article
33. Responsibilities of provincial-level People’s Committees
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2. Provincial-level Industry and Trade Departments shall assist provincial-level People’s
Committees in the following activities:
a/ Inspecting, examining and supervising according to their competence multi-level marketing activities
in
their localities;
b/ Lawfully handling according to their competence or proposing
competent authorities to
handle violations of the law on management
of multi-level marketing activities;
c/ Reporting to the Ministry of Industry and Trade on the receipt of dossiers of
notification of multi-level marketing activities of
multi-level marketing businesses
in
their localities under Article
17
of this Decree;
d/ Annually reporting to
the
Ministry of Industry and Trade on the results of examination, supervision and handling of violations of the law on
management of
multi-level marketing activities
in
their localities;
dd/ Performing other
responsibilities in accordance with this
Decree.
Article
34. Handling of violations for multi-level marketing businesses and multi-level
marketing participants
1. Multi-level marketing businesses
and multi-level
marketing participants that
violate this Decree shall, depending
on the
nature
and severity
of
their violations, be handled in accordance with the laws on
competition and on handling of
administrative
violations.
2. A multi-level marketing business or participant that violates this
Decree and causes
damage to material interests
of related organizations
or persons shall pay compensations
in
accordance with law.
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1. The competence to handle violations of this Decree must comply with the
laws
on
competition and on handling of administrative violations.
2. The procedures for handling violations of this Decree
must comply
with the laws on competition and on handling of administrative violations.
Chapter
VII
IMPLEMENTATION PROVISIONS
Article
36. Effect
1. This Decree takes effect on July 1, 2014.
2. Registration certificates of organization of
multi-level marketing granted under Decree No. 110/2005/ND-CP of August 24,
2005, on management of multi-level marketing activities remain effective until
businesses are granted multi-level marketing registration certificates under
this Decree, but for no more than 6 months from the effective date of this
Decree.
3. This Decree replaces Decree No. 110/2005/ND-CP
of August 24, 2005, on management of multi-level marketing activities.
Article
37. Implementation responsibilities
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2. Ministers,
heads of ministerial-level agencies,
heads of government-
attached agencies and chairperson of provincial-level People’s
Committees shall implement this Decree.-
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Nguyen Tan Dung