Prohibited acts in multi-level business activities according to the latest regulations

Prohibited acts in multi-level business activities according to the latest regulations

Your knowledge:

Prohibited acts in multi-level business activities according to the latest regulations

Knowledge of Lawyers:

Legal basis:

Decree 40/2018 / ND-CP on management of business activities by multi-level mode (effective from 02/5/2018);
Knowledge of prohibited activities in multi-level business activities:
     Article 5 of Decree No. 40/2018 / ND-CP provides for the management of business activities by multi-level mode, specifically:

1. Prohibited acts in multi-level business activities of multi-level sale enterprises
It is forbidden for multi-level sale enterprises to perform the following acts:

Requesting another person to deposit or pay a certain sum of money in order to sign a multi-level sale contract;
Asking others to buy a certain quantity of goods to sign contracts for participation in multi-level sales;
To let multi-level sale participants receive money or other economic benefits from the introduction of other persons to participate in multi-level sale activities, not from the purchase or sale of goods of such persons referred to;
To refuse to pay without plausible reasons commissions, bonuses or other economic benefits which the participants in the multi-level sale are entitled to;
Providing fraudulent information on compensation plans, on the benefits of participation in multi-level sales networks;
Providing false information, causing confusion about the features and utility of goods or activities of enterprises through reporters, trainers at conferences, seminars, trainings or through documents of the enterprise. business;
Maintaining more than one multi-level sales contract, multi-level business location, multi-level business code or other equivalent forms for the same multi-level seller;
Promoting the use of a multi-level, multi-level network in which participants in the promotion have more than one position, code or other equivalent forms;
To organize commercial intermediary activities under the provisions of commercial law in order to serve the maintenance, expansion and development of multi-level sale networks;
To accept or accept applications or any other form of documents of multi-level sale participants in which the participants in the multi-level sale declare renouncing part or whole of their rights according to regulations. This Decree or the enterprise shall not be obliged to perform obligations to participants in the multi-level sale of goods according to the provisions of this Decree;
To conduct business according to the multi-level mode for subjects not allowed under Article 4 of this Decree;
To not use the system of management of multi-level sale participants already registered with the multi-level sale registration organization to manage the participants in multi-level sale;
Selling or transferring networks of participants in multi-level sale of goods to other enterprises, except for cases of acquisition, consolidation or merger of enterprises.

 2. Prohibited acts in multi-level business activities for participants in multi-level sale
Participants in multi-level sales shall be prohibited from performing the following acts:

Acts defined at Point a, Clause 1 of this Article: "Requesting other persons to deposit or pay a certain sum of money in order to sign contracts for participation in multi-level sale;"
Providing false or misleading information on the interests of participation in multi-level sale, the functions and utility of goods and activities of multi-level sale enterprises;
To organize seminars, conferences and training courses on business in the multi-level mode without written authorization of multi-level sale enterprises;
To entice, seduce or buy off the participants of multi-level sale of other enterprises participating in the network of enterprises they are participating in;
Abusing positions, powers, social status or profession to encourage, ask for, entice or entice others to join the multi-level sale network or purchase goods for business under the multi-level mode;
Conducting multi-level sale activities in localities where local enterprises have not yet been granted multi-level sale registration certificates.
     3. Prohibiting organizations and individuals conducting multi-level mode of business, organizing conferences, seminars, training and introduction of business activities by their multi-level mode or other organizations or individuals They have not yet been granted the certificates of registration of multi-level sale of goods, unless otherwise provided for by law.

     4. Prohibiting individuals engaged in activities of business organizations and / or individuals under the multi-level mode, which have not yet been granted multi-level sale registration certificates, unless otherwise provided for by law.