Images of doctors and pharmacists ineligible to be used for multi-level marketing in Vietnam

Images of doctors and pharmacists ineligible to be used for multi-level marketing in Vietnam (Internet image)

On April 28, 2023, the Government issued Decree 18/2023/ND-CP amending a number of articles of Decree 40/2018/ND-CP providing the regulatory framework for multi-level marketing.

1. Images of doctors and pharmacists ineligible to be used for multi-level marketing in Vietnam

According to Decree 18/2023/ND-CP supplements Clause 14, Article 40 of Decree 40/2018/ND-CP, the responsibilities of multi-level marketing companies as follows:

Do not provide information about food using images, equipment, costumes, names, correspondences of health facilities, health units, physicians, pharmacists, health workers, testimonials of patients, articles written by physicians, pharmacists, health workers; Do not provide information about food that represents or quotes patients' opinions that the food has medicinal use.

In addition, Decree 18/2023/ND-CP also adds Clause 5, Article 41 of Decree 40/2018/ND-CP stipulating the responsibilities of participant in the MLM network:

Do not provide information about food using images, equipment, costumes, names, correspondences of health facilities, health units, physicians, pharmacists, health workers, testimonials of patients, articles written by physicians, pharmacists, health workers; Do not provide information about food that represents or quotes patients' opinions that the food has medicinal use.

2. Amendments to regulations on registration of multi-level marketing activities in a province in Vietnam

According to Article 20 of Decree 40/2018/ND-CP amended by Decree 18/2023/ND-CP, the registration of multi-level marketing activities in a province in Vietnam is as follows:

- The MLM company shall carry out procedures for registration of MLM activities with the Provincial Department of Industry and Trade, and may perform MLM activities in such province only after it has obtained a written certification of registration of MLM activities from such Provincial Department of Industry and Trade.

- If the enterprise does not have the head office, any branch, representative office or business location in the province, the enterprise shall assign a person who resides in such province to act as the enterprise's business contact in such province to work with local authorities in the province. The enterprise's business contact shall satisfy the following conditions:

+ He/she does not fall into any of the cases specified in Point a Clause 2 Article 28 of this Decree;

+ He/she has obtained the certificate on knowledge in accordance with Article 38 of this Decree;

+ He/she is authorized by the enterprise to work, provide information and documents about the enterprise's MLM activities in the province at the request of MLM authorities.

- The MLM company is obliged to keep documents concerning its MLM activities carried out in the province and present them at the request of a competent authority.

Ho Quoc Tuan

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