How are commissions, bonuses and other economic benefits in multilevel marketing in Vietnam paid?
- How are commissions, bonuses and other economic benefits in multilevel marketing in Vietnam paid?
- How long is the multi-level marketing company responsible for delivery of products to the participants?
- Is a participant entitled to return the products purchased from the multilevel marketing company in Vietnam?
How are commissions, bonuses and other economic benefits in multilevel marketing in Vietnam paid?
Pursuant to the provisions of Article 48 of Decree No. 40/2018/ND-CP stipulating as follows:
Commissions, bonuses and other economic benefits
1. A multi-level marketing company shall pay commissions, bonuses and other economic benefits to participants according to the compensation plan registered with a competent authority.
2. The sum of commissions, bonuses and other economic benefits, including benefits received through promotion programs, paid to participants during a year must not exceed 40% of sales from the multi-level marketing activities of the multi-level marketing company.
3. The sales prescribed in Clause 2 of this Article are generated from the company’s multi-level marketing activities, and exclude VAT.
4. The sum of commissions, bonuses and other economic benefits specified in Clause 2 of this Article excludes the difference between the announced retail price and the selling price at which the multi-level marketing company sells products to participants.
5. The multi-level marketing company shall make cash payment of commissions, bonuses and other economic benefits to participants by bank transfer.
Thus, the sum of commissions, bonuses and other economic benefits, including benefits received through promotion programs, paid to participants during a year must not exceed 40% of sales from the multi-level marketing activities of the multi-level marketing company.
Note: The sales during a year are generated from the company’s multi-level marketing activities, and exclude VAT.
The sum of commissions, bonuses and other economic benefits specified above excludes the difference between the announced retail price and the selling price at which the multi-level marketing company sells products to participants.
How are commissions, bonuses and other economic benefits in multilevel marketing in Vietnam paid?
How long is the multi-level marketing company responsible for delivery of products to the participants?
Pursuant to the provisions of Article 46 of Decree No. 40/2018/ND-CP stipulating as follows:
Delivery of products
1. Within 30 days from the date on which a participant makes payment for products, the multi-level marketing company must deliver the full amount of purchased products to that participant who takes charge of receiving such products.
2. If the multi-level marketing company fails to deliver products or a participant fails to receive products within the time limit specified in Clause 1 of this Article, the multi-level marketing company shall cancel the transaction and fully return the received amount of money to that participant.
3. If a participant deposits products in the multi-level marketing company’s warehouse but fails to receive products within the time limit specified in Clause 1 of this Article, the multi-level marketing company shall cancel the transaction and fully return the received amount of money to that participant.
Thus, within 30 days from the date on which a participant makes payment for products, the multilevel marketing company in Vietnam must deliver the full amount of purchased products to that participant who takes charge of receiving such products.
Is a participant entitled to return the products purchased from the multilevel marketing company in Vietnam?
Pursuant to the provisions of Article 47 of Decree No. 40/2018/ND-CP stipulating as follows:
Return and repurchase of products
1. A participant is entitled to return the products purchased from the multi-level marketing company, including products purchased through promotion programs, within 30 days from the receipt of such products.
2. Products to be returned must meet the following requirements:
a) Products returned must be in original package, stamp and label;
b) The invoice for purchase of products returned must be available.
3. Within 30 days from the date on which a participant submits a valid request for return of products, the multi-level marketing company must repurchase the products, which meet the requirements specified in Clause 2 of this Article, and make payment for repurchased products according to the price agreed upon with the participant provided that it must be equal to at least 90% of the amounts paid by that participant for purchase of such products.
4. The multi-level marketing company is entitled to deduct the amounts of commissions, bonuses and other economic benefits that the participant received when purchasing the quantity of products to be returned under regulations of this Article.
5. The multi-level marketing company is entitled to request other participants to return the amounts of commissions, bonuses and other economic benefits that they received in relation to the quantity of products to be returned under regulations of this Article.
6. In case the multi-level marketing contract signed with a participant is terminated and completed, the multi-level marketing company shall repurchase the quantity of products sold to that participant under regulations in Clause 1, Clause 2, Clause 3, Clause 4 and Clause 5 of this Article.
According to the above provisions, a participant is entitled to return the products purchased from the multi-level marketing company, including products purchased through promotion programs, within 30 days from the receipt of such products.
At the same time, products to be returned must meet the following requirements:
- Products returned must be in original package, stamp and label;
- The invoice for purchase of products returned must be available.
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