Vietnam: Illegal acts in multi-level marketing shall be fined up to VND 100 million

According to Decree No. 141/2018/ND-CP of Vietnam’s Government, a fine ranging from VND 80,000,000 to VND 100,000,000 shall be imposed for one of the following violations:

- Requesting a prospective participant to deposit or pay a certain amount of money in any way to be eligible to enter into a MLM contract;

- Requesting a prospective participant to buy a certain quantity of products in any way to be eligible to enter into a MLM contract;

- Paying money or other economic benefits to a participant in compensation for his/her recruitment of new distributors without consideration of his/her sale of products to recruited distributors;

- Refusing to pay, without giving legitimate reasons, commissions, bonuses or other economic benefits to eligible participants;

- Providing false information concerning the compensation plan or benefits obtained from the participation in the MLM;

- Providing false or misleading information about features or uses of products or operations of the MLM company through speakers or trainers at conferences, meetings, training courses or training materials of the MLM company;

- Failing to fulfill or improperly fulfilling duties to repurchase products in accordance with laws.

Decree No. 141/2018/ND-CP emphasizes that a fine twice as much as the fine for an administrative violation prescribed above shall be imposed if such violation is found to involve two provinces or central-affiliated cities or more.

View more details at Decree No. 141/2018/ND-CP of Vietnam’s Government, effective from November 25, 2018.

- Thanh Lam -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE