Fines for violations against regulations on multi-level marketing (MLM) in Vietnam shall be up to VND 200 million

18:30, 28/08/2020

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

According to the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, fines for violations against regulations on multi-level marketing (MLM) are as follows:

- A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for requesting a prospective participant to deposit or pay a certain amount of money or purchase a certain quantity of goods in any way to be eligible to enter into a MLM contract;

- A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for paying a sum of commissions, bonuses and other economic benefits, including benefits from sales promotion programs, to participants during a year in excess of 40% of sales from the MLM activities of the MLM company in the same year;

- A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed upon a MLM company for 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. A fine that is twice as much as the corresponding to this fine shall be imposed if the violation involves two provinces or central-affiliated cities or more

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

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