Vietnam: Trading the network of multi-level marketing participants shall be fined up to VND 80 million

09:00, 31/08/2020

This is an important content of the Decree No. 98/2020/NĐ-CP of Vietnam’s Government prescribing penalties for administrative violations against regulations on commerce, production and trade in counterfeit and prohibited goods, and protection of consumer rights, issued on August 26, 2020.

Mua bán mạng lưới người tham gia bán hàng đa cấp có thể phạt 80 triệu , Nghị định 98/2020/NĐ-CP

According to Clause 8 Article 73 of Decree No. 98/2020/NĐ-CP of Vietnam’s Government, a fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed upon a MLM (multi-level marketing) company for committing one of the following violations:

- Maintaining more than a MLM contract, position, identity number or another form of equivalent validity for a participant;

- Implementing sales promotion program using a multi-level network in which a participant has more than a position, identity number or another form of equivalent validity;

- Providing commercial intermediary services as regulated in the Law on commerce with the aims of maintaining, expanding and developing its own MLM network;

- Receiving or accepting a participant's application or another document which states that the participant relinquishes a part or all of his/her rights as prescribed by law or says that the MLM company must not fulfill obligations towards the participant as prescribed by law;

- Failing to use the management system registered with the authority issuing the MLM registration certificate to manage its MLM participants;

- Trading or transferring the network of MLM participants to another enterprise, except for acquisition, consolidation or merger of enterprises.

View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, effective from October 15, 2020.

Le Vy

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