| THE GOVERNMENT No. 42/2014/ND-CP | THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Hanoi, May 14, 2014 |
DECREE
On management of multi-level marketing activities [1]
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
Article1. Scope of regulation
This Decree provides multi-level marketing activities and management of these activities in the territory of the Socialist Republic of Vietnam.
Article2. 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.
Article3. 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.
6. Rules of operation means a set of rules developed and applied by a multi-level marketing business to govern acts, rights and obligations of multi-level marketing participants.
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.
